Individual - Income determination

Last reviewed - 05 December 2023

Employment income

All remuneration paid in cash or in kind is taxable without regard to length of residence or source of income. Benefits in kind are taxed as if they were income from employment.

Specific legislation has been introduced on how to tax benefits and the allowances available, particularly on the following:

  • Expense payments.
  • Vouchers and credit tokens.
  • Living accommodation.
  • Cars, vans, and related expenditure.
  • Loans to employees.
  • Loans to directors, shadow directors, or connected persons.
  • Removal benefits and expenses.

The notable exceptions are contributions paid to an approved pension scheme, medical insurance premiums up to GBP 3,000, and the cost of providing accommodation to a relocated employee for the first seven years, which are all exempt from tax.

The Commissioner may also tax benefits not specifically covered in legislation. The value of the benefit is the cost to the employer less any amount made good by the employee.

There is a non-taxable allowance in respect of benefits, where the total annual value of the benefit is less than GBP 250 in respect of any employee.

The employer may opt to pay the tax on the benefits on behalf of an employee. When the annual value of these benefits is between GBP 250 and GBP 15,000, tax shall be paid at the rate of 20%. When the annual value of the benefit is more than GBP 15,000, tax shall be paid at the rate of 29%.

Capital gains

There is no tax on capital gains in Gibraltar.

Dividend income

Dividends are taxable to the extent that the underlying income of the company comprises income that is taxable in Gibraltar.

Interest income

There is no tax on interest income in Gibraltar.