Gibraltar

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.

Profits and gains derived from the sale of property

As from 1 January 2025 the profits and gains derived from the sale of a property will be subject to taxation if a person owns or holds indirectly through a property holding entity:

• five or more taxable properties, in whole or in part; or
• a total of five or more taxable properties, in whole or in part, over five consecutive tax periods.

If the above criteria are met the following will be subject to tax:

• profits from the sale of any such property by the property holding entity, treated as if the profits are the income of that entity; and
• profits from the sale of shares, indirectly, in a property holding entity by the person or by any nominee holding shares on the person's behalf, treated as if the profits are the income of that person.

The provision excludes a property which is used exclusively as the primary residence of the beneficial owner. Properties exempt from taxation are listed under the definition of 'exempted property'. 

The provision will not apply to:

• the exercise of a power of sale pursuant to a mortgage on the residential property;  
• any order of a court ordering a sale of the residential property; or
• A disposal by the estate of a deceased person. 

In determining a person’s interest in a taxable property that person may be treated as being entitled to the interests of all connected persons, as defined in Schedule 4, paragraph 9 of the Income Tax Act 2010.

A person is connected with an individual if that person is the individual's wife or husband living with him or her, or is a relative, or the wife or husband of a relative, of the individual or of the individual's wife or husband and a man and a woman living together as husband and wife are treated as if they were married to each other. This shall not apply to the bona fide interest of a connected person if the ownership of such interest is not for the purpose of avoidance of the charge to tax.