Gibraltar

Individual - Other tax credits and incentives

Last reviewed - 22 December 2020

Allowances Based system tax credits

Under the Allowances Based system, there is a tax credit equal to the higher of GBP 300 or 2% of the tax bill.

Individuals over the age of 60 who are not in receipt of pension or annuity income exceeding GBP 6,000 are eligible for a tax credit of GBP 4,000.

Category 2 tax incentives

A Category 2 individual shall only be liable to income tax on the first GBP 80,000 of income per annum under the Allowances Based system (on income of GBP 80,000, this equates to a total tax charge of GBP 27,560). The minimum amount of tax payable in any tax year is GBP 22,000.

In order to be issued with a Category 2 certificate, an individual must:

  • not have been resident in Gibraltar for the previous five years
  • have a minimum of GBP 2 million in net assets, and
  • have approved residential accommodation in Gibraltar available for one's exclusive use.

High executive possessing specialist skills (HEPSS) tax incentives

A HEPSS individual shall only be liable to income tax on the first GBP 120,000 of income per annum under the Gross Income Based system (on income of GBP 120,000, this equates to a total tax charge of GBP 29,940).

In order to be issued with a HEPSS certificate, an individual must:

  • not have been resident in Gibraltar for the previous three years (or have previously registered as a Category 3 individual)
  • possess skills not available in Gibraltar that are necessary to promote and sustain economic activity of particular economic value to Gibraltar, and
  • have approved residential accommodation in Gibraltar available for one's exclusive use.

Green incentives

A one-off tax deduction is introduced against assessable income (with the percentage to be verified and subject to the discretion of the Commissioner of Income Tax) on the investment made by an individual, company, or business that makes a significant improvement to the Energy Performance Certificate (EPC) rating of the premises.

Property investment incentive

A tax-free property investment incentive is available for owners of property constructed in Gibraltar in the next 30 months from 1 July 2016 and rented for residential purposes. These owners will receive a tax credit equal to the tax payable on the profits earned on the first 24 months of rent occurring in the first five years after the completion of construction of that property. This tax credit is non-refundable and can be offset against the tax payable to extinguish any liability to tax.