Gibraltars convenient location offers many benefits to businesses and high net worth individuals around the globe. Situated on the southern tip of the Iberian Peninsula it combines the Mediterranean climate and lifestyle with a leading international finance centre.

One of the attractions for individuals/businesses are “Category 2 status”have access to a status which is achieved by fulfilling certain requirements under the Qualifying (Category 2) Individual Rules 2004 and which we will summarise below, another is “HEPPS status”.

A Qualifying (Category 2) Individual is an individual who for the year of assessment

  • has available to him for his exclusive use approved residential accommodation in Gibraltar for the whole of the year of assessment
  • is not resident in Gibraltar and has not been in the previous five years
  • has applied to the Finance Centre Director and has been issued with a certificate qualifying him as a Category 2 individual

Assessable Income

 Maximum tax payable
The first £4,000 taxable income at the rate of 14%£560
The next £12,000 taxable income at the rate of 17%£2,040
The next £89,000 taxable income at the rate of 39%£34,710

The maximum assessable income is capped at £105,000 with maximum tax payable £37,310.

There are no allowances or deductions.

Tax is payable only up to the maximum assessable income of £105,000.

Any income in excess of £105,000 is not subject to tax in Gibraltar.

What are the benefits of a “CAT 2” Individual?

A “CAT 2” individual will obtain a special tax status capped on the tax liability of that individual. Tax is applied to the first £118,000 worldwide income, which means that a CAT 2 individual will pay a maximum of £37,310 per annum. As a CAT 2, you can take full advantage of Gibraltar’s status as a reputable offshore finance centre. Children are eligible to attend local school in Gibraltar and benefit from a high-level education that follows the UK National Curriculum.

HEPPS ( High executive specialist skills)

This status is available to individuals who possess skills not available in Gibraltar and, in the Government’s opinion, necessary to promote and sustain economic activity value to Gibraltar, who will occupy a high executive or senior management position, and who will earn more than £160,000 per annum of income in Gibraltar.

What are the benefits of a “HEPPS”

A High Executive Possessing Specialist Skills Individual shall be charged to tax limited to the first £160,000 of his assessable income, under the Gross Income Based System,This currently equates to a tax liability of £39,940 per annum (£3,328.33 per month). The cap onassessable income only applies to income derived from employment with the employer under which the HEPSS certificate hasbeen obtained.