Advantage 2 – Becoming a High-Net Worth Resident

18 Mar 2014

About Gibro Corporate Management

Gibro Corporate Management is one of Gibraltar’s leading firms in providing Corporate Management, Legal Services, Business Advice and Trustee Services for over 40 years for both Gibraltar and foreign companies and persons. Our team of lawyers and accountants specialise in providing advice ranging from Maritime to Gaming.

Gibraltar Category 2 Residency (also known as “High Net Worth Individuals” – (HNWI’s))

Gibraltar Residency is a solution for High Net Worth Individuals who are looking for residency options in a low tax jurisdiction. This is being prompted by increasing rates of personal taxes, especially in the UK. Gibraltar is perfectly situated geographically with close proximity to Spain and the Algarve in Portugal therefore extending the advantageous choice as a residency jurisdiction over say others like, Guernsey, Malta, Monaco etc. Gibraltar has easy access from London airports.

Qualifying Individuals (Category 2)

The Government of Gibraltar introduced low tax limits in order to encourage wealthy individuals to establish a residence in Gibraltar. Such individuals known as Qualifying (Category 2) Individuals will pay tax on the first £80,000 of assessable income only with a minimum tax payable per annum of £22,000 and a maximum of approximately £30,000 per annum. Some benefits of this residency are exemptions from Capital Gains Tax, Inheritance Tax, Taxation on Dividends.

Application to Ministry of Finance, Finance Centre Director

Gibro’s Private Client team, in conjunction with our associated legal arm of barristers would arrange an application to the Finance Centre Director for the issue of a certificate under the Qualifying (Category 2) Individual Rules under the Income Tax Ordinance. A £1,000 non-refundable application fee (excluding professional fees) is payable and the application must be supported by two character references from recognised professionals (one must be from a bank and the other from a law or accountancy firm).

Property in Gibraltar

In order for an individual to qualify as Qualifying (Category 2) Individual he must have approved residential accommodation available for his exclusive use in Gibraltar throughout the year. This could either mean a rental option or an outright purchase. Evidence of wealth The Ministry of Finance would also be looking to ensure that a Qualifying (Category 2) Individual has sufficient means to maintain himself and his family. They will therefore be looking for evidence of net wealth of at least £2,000,000 although it is not necessary for the individual to declare his worldwide wealth or earnings. The Ministry of Finance would also be looking to ensure that the individual has private medical insurance to cover both him and his family whilst residing in Gibraltar.

No Capital Gains Tax or Estate Duty

It is also interesting to note that there is no capital gains tax or estate duty in Gibraltar.

For full information on how Gibro can assist you in benefitting in becoming a Qualifying Category Two Gibraltar resident, contact:

Nicholas Wright, Private Client Director
+350 200 76222

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