Become a Gibraltar Category 2 Resident – Tax Advantages 2025/2026

Gibraltar Category 2 residency
& Gibraltar personal tax

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/Sales tax 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 Gibraltar Category 2 tax residency and the Gibraltar tax system.

We provide guidance for individuals who are:

  • Considering becoming a Gibraltar tax resident under Category 2 rules, HEPSS rules, or standard personal tax rules

  • Existing residents who want to understand Gibraltar tax obligations, including cross-border workers (those living in Spain but working in Gibraltar)

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  is deemed a “white” listed territory by the OECD as it has signed sufficient tax information exchange agreements.

Gibraltar Personal TaxationCategory 2 Residency

Category 2 tax residency is a special tax regime designed for wealthy individuals relocating to Gibraltar.

  • 2025/2026 Tax Cap: Residents are taxed on the first £118,000 of worldwide income, with a maximum annual tax liability of £42,380.

  • Other Benefits: No taxation on foreign income, no capital gains, wealth, or inheritance tax, and no VAT/Sales tax.

For detailed information, see our 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 15%. For more information on this, please visit our Gibraltar Corporate taxation page.

You can contact us by writing to us at info@category2.com with any questions you may have as well as the costs of the application.