The Gibraltar Government introduced the Category 2 rules to make Gibraltar a fiscally attractive location for wealthy individuals. This is coupled with the fact that there is no inheritance tax, capital gains tax, wealth tax or VAT in Gibraltar makes it a worthwhile option for anyone looking to change their tax residency.
Category 2 Tax Residency - Introduction
Welcome to Category2.com, the longest running dedicated website on Category 2 tax residency and the Gibraltar tax system.
This website is designed to help anyone considering becoming a Gibraltar tax resident under the Category 2 tax rules, Hepss rules or Standard Gibraltar tax rules. We also help existing residents understand the tax rules and in particular Cross border workers (those who live in Spain but work in Gibraltar).
For those of you who are unfamiliar with Gibraltar, it is located on the southern tip of mainland Spain with a population of just under 30,000. The official language of Gibraltar is English, but Spanish is also widely spoken. The currency is the Gibraltar pound.
Gibraltar has its own Government and is therefore able to raise its own taxes, (with the UK responsible for foreign affairs, security and defence). It became a British overseas territory in 2002 under the British Overseas Territory Act 2002.
Gibraltar is a modern International Financial Centre which (through the UK) is within the EU and benefits from EU directives making it an attractive location for cross border investment. Gibraltar also benefits from being able to passport services into other EU states making it a popular location for businesses to have their headquarters. In addition, Gibraltar is deemed a "white" listed territory by the OECD as it has signed sufficient tax information exchange agreements.
Gibraltar Personal Taxation
If you have never heard of Category 2 tax residency, it is a special tax regime brought in by the Gibraltar Government whereby anyone granted this form of tax residency status pays a maximum capped tax of £29,880. For a detailed summary on the tax payable and rules please see our Category 2 rules section.
HEPSS (High Executive Possessing Specialist skills) is a tax status with a capping of tax for individuals coming to live and work in Gibraltar. Please see our HEPSS section for more details.
We also cover the standard personal tax rates for anyone looking to relocate to Gibraltar under the normal rules.
Gibraltar Corporate Taxation
Gibraltar resident Companies only pay tax at a flat rate of 10%. For more information on this, please visit our Gibraltar Corporate taxation page.
Foresight Consultancy Ltd is a Gibraltar based, tax driven professional service firm. We pride ourselves in helping individuals and companies alike with any tax issues they may have, whether it is applying for special tax residency status such as Category 2 residency, to advising on the tax implications of a particular transaction.
Francesco Bertagnin is the managing director of Foresight Consultancy Ltd as well as the author of www.category2.com.
Francesco is an international tax adviser with many years experience in the field of UK, Gibraltar and Spanish taxation. If you are considering moving to Gibraltar or southern Spain we would recommend that you contact Francesco directly so that he can review the suitability of such a move with you, (you should never make a decision based solely on the contents of any website and should always seek professional help).
You can contact Francesco by completing the contact us page (which will be forwarded directly to him) or by sending an e-mail directly to him at firstname.lastname@example.org with your details and any questions you may have.