Gibraltar

Income tax is charged on income accruing in or derived from Gibraltar. The 'accrued in and derived from' principle is softened for individuals who carry out activities in Gibraltar for a period of less than 30 days in aggregate during the year of assessment, so that such individuals will be reimbursed for taxes paid on the income from their activities in Gibraltar.

Income tax is also charged on certain income accruing in, derived from, or received in any place other than Gibraltar by any person ordinarily resident in Gibraltar.

Personal income tax rates

Individuals have the choice of being taxed under either an Allowances Based System or under a Gross Income Based System and will be assessed under the system that results in the lower tax.

Allowances Based System

Under the Allowances Based System, the individual will be taxed on their income less allowances (see the Deductions section). For the 2023/24 tax year, the applicable tax rates are:

It is expected that a tapering relief will be introduced to mitigate the impact of the rate change for individuals at the GBP 100,000 gross assessable income threshold. 

Persons whose taxable income does not exceed GBP 11,450 per annum are exempt from tax.

A tapering relief is available for individuals whose taxable income is between GBP 11,451 and GBP 19,500.

Gross Income Based System

Under the Gross Income Based System, the applicable income bands and tax rates for the 2023/24 tax year are as follows for income up to GBP 25,000:

The income bands and tax rates for income above GBP 25,000 are:

It is expected that a tapering relief will be introduced to mitigate the impact of the rate change for individuals at the GBP 100,000 gross assessable income threshold. 

Persons under the Gross Income Based System may also benefit from a deduction from their assessable income (see the Deductions section).