Gibraltar

Individual - Significant developments

Last reviewed - 09 September 2025

Budget 2025

Below is a summary of the key taxation changes to existing legislation as a result of the Chief Minister’s budget speech in June 2025.

Personal tax rates

No changes to the personal tax rates

Gibraltar Residency and Category 2 Status

In light of the agreed EU Treaty on Gibraltar's access into the Schengen Area, an Immigration Criteria Consultation Committee will be established to advise the Gibraltar Government on reforming residency entitlements including requirements for obtaining Category 2 Status for High-Net-Worth Individuals.

Social Insurance

The cap on both employer and employee social insurance contributions increases by 5%.

Statutory Minimum Wage

The hourly minimum wage increases from £8.90 to £9.50 (a 6.7% increase) from 1 July 2025.

Stamp Duty Relief for Family Reorganisations

A review into the potential exemption of stamp duty on genuine inter vivos family reorganisations. 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.

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 scare 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 but Gibraltar Parliament.