Tax Residency in Gibraltar for HNWis with fixed tax and no minimum stay

Gibraltar city

COMPLETE SOLUTION FOR CLIENTS OF EUROPEAN BANKS TO DECLARE THEIR TAX RESIDENCE

Banks in Switzerland, Austria, Monaco, Liechtenstein, Andorra, Luxembourg and other European countries easily accept the Gibraltar tax residence from their HNW clients

0% TAX RATE ON ALL INCOME OBTAINED OUTSIDE GIBRALTAR

there is only a requirement to pay a flat income tax in Gibraltar in the amount of 32,000 GBP per year (about 38,000 EUR per year) in the absence of income in Gibraltar

THERE IS NO NEED OF RESIDENCE ON THE TERRITORY OF GIBRALTAR TO MAINTAIN THE STATUS OF TAX RESIDENCE
there is only a requirement to rent or own an apartment in Gibraltar

We conduct all the work personally with direct access to Gibraltar Finance Centre, Civil Status, local real estate agents, lawyers and accountants. We have over 10 years experience in Gibraltar.

Main idea:

Ideal solution for those with NET assets over £2million who need Tax residency in the country where you do not need to reside full time (no minimal stay requirement)- Gibraltar. You get tax residency/number, identity card, utility bills, purchased or rented property, and pay fixed annual tax of £32,000 per annum + rental and insurance expenses (aprx £23,000 per annum). Perfect for those with international lifestyle (reside in various countries for less than 183 days each) and International banking asking for TIN.
for those who need to solve the problem of indicating the tax residence for banks, etc.
you don’t need to live in Gibraltar (no minimum stay requirement), but you can get a special tax residence (tax number + residence permit and identity card)
and pay only GBP32 thousand per year (new rate from August 2021) + rental and insurance expenses (+ 20 thousand more)

Who is eligible for Category 2 Individual Status?

The Category 2 individual must be of substantial and sound financial standing and have a minimum net worth of £2 million.
Category 2 Individual Status is available to all non-Gibraltarian individuals who establish a residential address in Gibraltar, have not been ordinarily resident in Gibraltar during the preceding 5 years, and do not derive any income from Gibraltar sources other than from Gibraltar Tax Exempt Status companies.
The Category 2 resident must either own or rent approved residential accommodation in Gibraltar. The accommodation must be approved by the Gibraltar Finance Centre and be used exclusively by the Category 2 individual and his direct family. His direct family includes his spouse, children, brother, sister, parents and his spouse’s parents. Therefore, the Category 2 individual cannot rent the property and is limited to occasionally allowing others to stay there, otherwise he will not be deemed to have “exclusive use” and would consequently lose his status.
There is no minimum stay in Gibraltar for a Category 2 resident individual, therefore as long as the individual fulfills all of the above conditions he will retain his Gibraltar residency without the need to spend any time in Gibraltar.
The minimum costs of an apartment for this purpose will normally range from £300,000 to £500,000 and will have to be classified as an approved property for this purpose. In case of rent, minimal price would start from GBP1600 per month.

Gibraltar midtown

What are the advantages of Category 2 Individual Status?

Income tax is only payable on earned or remitted income in Gibraltar such as employment income (including benefits in kind), trading income (rental income, consultancy) and dividends from private companies;
Rental income from a foreign source is not taxable in Gibraltar;
No Inheritance Tax; No Wealth Tax; No Capital Gains Tax; No Gift Tax; No VAT;
No taxation on savings interest/ investment income (paid by banks & building societies);
No taxation on dividend income arising from companies quoted on a recognised stock exchange; and
No taxation on pension income from an approved occupational scheme for individuals aged 60 or over.
Category 2 Individual Status is obtained by application to the Financial & Development Secretary of Gibraltar, and once granted allows the individual to elect the level of taxation which he wishes to pay in Gibraltar while being guaranteed that his total tax bill will not exceed GBP £32000 per annum. The minimum amount of tax payable in Gibraltar under this status is £32,000 per annum with the provision that the tax is only levied on the first £105,000 of assessable income. So if you don’t have any income in Gibraltar, you just pay £32,000 per annum.
Category 2 Individual Status, therefore, can be particularly useful for those persons who may wish to show a tax authority in another jurisdiction that they are subject to taxation in Gibraltar with a view to persuading them that they should only be expected to pay a nominal amount of tax in their home jurisdiction, at the same time as they keep their taxation level in Gibraltar to an absolute minimum.
It should be noted, however, that simply because a Category 2 Individual pays tax in Gibraltar, this does not automatically mean that they will not be taxed by one or more other foreign jurisdictions. It would obviously be up to the individual himself to ensure that this does not happen and that his tax affairs are arranged competently to accommodate an annual tax minimum commitment of £32,000 in Gibraltar (assuming that this represents a substantial saving to his tax bill in the country where he is currently tax resident).

Application Process:

Consideration of an application for status about 2 weeks after the submission of the originals of all documents. The list is below.
By the time you apply, you must already find the property that you will rent or buy (I can help find it with the help of local agents). Rental prices starting at 1,600 pounds per month. Options are usually very few in view of the deficit – one or two.
After obtaining the status (Cat2 Certificate) it is necessary to take out insurance and rent or purchase chosen real estate. You will have 2 months after approval of application to finalise rental agreement or property purchase.
After receiving a lease or purchase document, an application is submitted for permission to obtain a residence permit in the immigration department (for non-EU and non-UK citizens, waiting about a month) and after obtaining permission, documents for obtaining a residence permit (civilian registration card, but does not give the right to travel) with timescales about 1-3 months. An English or Schengen visa is required in the passport if you are not EU or UK national.
When the card is ready, you need to visit to collect it – We will arrange a visit, or you can give a power of attorney and we can pick up the card for you. We can also help in opening a bank account.

Documents for the first stage:

Documents confirming NET assets above ￡ 2 million (letter from an accountant, bank or lawyer addressed to Gibraltar Finance Center, with confirmation that the applicant has NET assets above 2 million pounds). I can provide the template
Personal reference (recommendation) from the bank and the one more from a lawyer, accountant or other bank.
CV confirming the sources of the applicant’s condition.
The completed application
Copy of the passport + copy of the page with a Schengen or English visa if applicable
The availability of international health insurance for the applicant and family members (we can arrange it in Gibraltar if yours does not qualify, the policy is about 2500 pounds per year) after receiving the status.

Recurrent payments (in pounds) after the end of the process:

Tax 32 thousand per year (from July to the end of June) if no income generated in Gibraltar.
Rent from 1600 to 2200 per month (for 1bed) = from 19200 to 26400 per year. A deposit of 2 months is required upon reservation. Then we usually pay the agent 3 months in advance.
Utility / Internet / service (depends on the apartment): 100-150 per month = 1200-1500 per year
Service (mail, cleaning, bills, etc. performed by a real estate agent): from 100 per month = 1000 per year
Additional services – price on application

Please note that tax year in Gibraltar ends June 30, so if you get status before that date, you can already submit tax return from July to November and pay tax for 1-2 months, which is good to show to whoever is asking about your tax residency. If you apply after June 30, your first tax return and payment will happen only in July-November next year.

BANKING

We can also assist with introduction to local and foreign banks to open personal or business account – for running expenses or for wealth management. My fee is from GBP2000 for the introduction and assistance with application process.

Gibraltar has few local banks (Founder Ed used to work for Lloyds bank which has been closed)

Retail for day to day: Gibraltar International Bank (government owned) and Natwest

Private Banking (all with Swiss link): SG Hambros, Lombard Odier, Safra Sarasin and local Turicum bank.

We have contacts with Senior management in all these banks.

Contact Us if you like to lean more and would like to apply!