Gibraltar

Individual - Significant developments

Last reviewed - 22 August 2026

Budget 2026

Below is a summary of the key taxation changes to existing legislation as a result of the Chief Minister’s budget speech in July 2026.

Statutory minimum wage

The hourly minimum wage increases from 9.50 to 10.00 British pounds (GBP) (a 5.26% increase) from 1 August 2026.

Stamp duty relief for family reorganisations

A review into the potential exemption of stamp duty on genuine inter vivos family reorganisations will occur. The Minister for Financial Services, together with the Commissioners of Stamp Duties and Income Tax, have been tasked with evaluating whether a safeguard mechanism can be introduced to prevent abuse. Their findings will guide the development of future policy in this area.

Category 2 status

On 18 June 2026, the Government of Gibraltar has announced changes to the Category 2 (Cat 2) regime, which will take effect following amendments to the Qualifying (Category 2) Individuals Rules 2004.

Under the proposed changes, the application fee for new Category 2 applicants will increase to £5,000, and the minimum net asset requirement will rise from its current level to £5 million. Individuals who already hold Category 2 status before the amendments take effect will be grandfathered and will not be subject to the revised net worth requirement.

The amendments also clarify that Category 2 status does not confer entitlement to publicly funded education or healthcare services in Gibraltar. In addition, individuals who cease to satisfy the conditions necessary to maintain their Category 2 status will no longer have an automatic basis for residence in Gibraltar.

New Residence Framework for Individuals

On 17 June 2026, the Gibraltar Government has published a policy paper setting out proposed changes to the residence framework for new applicants from 6 October 2025. Existing Gibraltar residents and identity card holders would generally be grandfathered and remain subject to the current rules.

Under the proposals, individuals seeking residence in Gibraltar would generally be required to meet minimum employment and accommodation requirements, be aged 55 or under (subject to limited discretion), and maintain ongoing tax and social insurance compliance.

Individuals applying for a residence permit would generally be required to provide:

An employment contract with annual gross remuneration at least equal to the average gross annual earnings in Gibraltar, currently stated as £37,500, subject to annual revision.
Evidence of ownership or rental of suitable residential accommodation in Gibraltar intended as the applicant's primary residence. Short-term and holiday rentals would not qualify.
A potential minimum salary waiver for applicants under the age of 30, provided the employer pays tax and social insurance contributions as if the employee were earning Gibraltar's prescribed average annual salary, until the employee reaches the required earnings threshold

The proposals are subject to legislative implementation and further guidance from the Government of Gibraltar.

Employer-provided accommodation exemption

On 19 June 2025, the Gibraltar government published the Income Tax (Amendment No.2) Act 2025, introducing significant changes to the tax exemption for employer-provided accommodation. Aimed at attracting international talent while tightening compliance, the exemption now applies only to ’specific employees‘ whose skills are either scarce or vital to Gibraltar's economic development, as determined by the Commissioner. Employers must formally apply for approval and report any changes to the accommodation. The exemption period is reduced from seven years to four years and can only be used once per employee. Directors are no longer excluded, and all benefits must be declared in annual returns, with non-compliance constituting an offence. Existing beneficiaries may retain the seen-year exemption unless their circumstances change.

The amendment has yet to be passed and enacted into law by the Gibraltar Parliament.