A strategic opportunity for Gibraltar residency and tax planning

NOV/DEC/JAN 25-26

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By Joseph Gomez, Consultant and Sebastian Triay, Senior Associate, Private Client Team, Triay Lawyers

Gibraltar offers a compelling seeking tax efficiency, lifestyle benefits, and a stable jurisdiction. With its Category 2 and High Executive Possessing Specialist Skills (HEPSS) statuses, Gibraltar provides a robust framework for wealth preservation and personal relocation.

For investors

Gibraltar is a tax efficient jurisdiction ideal for wealth growth and protection. It imposes no tax on capital gains, dividends, interest, or wealth, making it attractive for those with diversified portfolios or passive income streams.

Category 2 Status is designed for individuals with a minimum net worth of £2 million. It caps income tax liability between £39,940.00 and £44,740.00, regardless of global income. Investors can continue operating businesses outside Gibraltar without local tax implications and may even structure operations through Gibraltar based entities under certain conditions.

Key benefits:

  • No tax on investment income;
  • No inheritance or succession tax;
  • British legal framework and financial stability;
  • Appealing lifestyle for family relocation.

For family offices

Gibraltar is a strategic base for multi-generational wealth planning. Its absence of inheritance, wealth, and capital gains taxes allows family offices to preserve and transfer wealth efficiently. The jurisdiction supports trusts, foundations, and corporate and partnership structures (including cellular structures) that align with global estate planning strategies.

Principals of family offices can apply for Category 2 status, securing personal tax efficiency while managing global assets. Gibraltar’s legal system, based on English common law, ensures privacy, asset protection, and regulatory clarity.

Key benefits:

  • Tax-efficient wealth transfer;
  • Legal certainty and confidentiality;
  • Flexible structuring options for global holdings;
  • Lifestyle appeal for family relocation.

For relocation consultants

Gibraltar offers a clear and efficient pathway to residency. The Category 2 and HEPSS statuses have well defined financial and accommodation requirements. The jurisdiction is English-speaking, safe, and offers a Mediterranean lifestyle ideal for clients seeking both tax benefits and quality of life.

HEPSS status is tailored for executives earning over £160,000.00 annually and possessing specialist skills that contribute to Gibraltar’s economy. It limits tax liability to £39,940.00 and requires local employment.

Key benefits for clients:

  • Fast-track residency process;
  • No wealth, capital gains, or inheritance taxes;
  • Business-friendly environment;
  • High standard of living and connectivity.

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Residency requirements

To qualify for Category 2 or HEPSS, applicants must:

  • Secure approved residential accommodation in Gibraltar;
  • Provide two professional references (one from an international bank);
  • Hold private comprehensive health insurance;
  • Submit proof of net worth (£2M for Category 2) or income (£160K+ for HEPSS);
  • Provide a valid passport and CV.

Once approved, applicants must apply for a Civilian Registration Card.

HEPSS applicants must not have lived or worked in Gibraltar in the 36 months prior to applying.

Application process

  • Application fee currently £1,233.00 for either Category 2 or HEPSS;
  • Category 2 applicants once the status is granted are required to deposit an amount equal to the maximum tax liability, refundable when the status is ended;
  • Certificates are issued indefinitely, subject to continued compliance.

Summary of UK-EU Treaty negotiations regarding Gibraltar (September 2025)

On 11 June 2025, the UK, EU, Spain, and Gibraltar reached a political agreement on the core aspects of a future treaty governing Gibraltar’s post-Brexit relationship with the EU. Key elements include removal of border checks between Gibraltar and Spain, dual border checks at Gibraltar’s airport and port, a customs union between Gibraltar and the EU, and cooperation on law enforcement, taxation, environmental standards, and frontier workers’ rights.

  • Disappearance of the physical land border with Spain;
  • Immigration control will be relocated to Gibraltar’s International airport;
  • Gibraltar will not join the Schengen Area, but Schengen rules will apply to non- 16 Gibraltar International www.gibraltarinternational.com residents entering via Gibraltar;

Negotiators aim to finalise the legal text by October 2025, with ratification expected by Christmas and implementation in early 2026.

The treaty does not affect the sovereignty of Gibraltar. A new bilateral cooperation agreement between the United Kingdom and Spain was signed in September 2025, focusing on economic growth and migration, building on the Gibraltar deal.

Conclusion

Gibraltar offers a rare combination of tax efficiency, legal stability, and lifestyle appeal. Whether you’re an investor, a family office, planning for future generations, or a consultant guiding clients through relocation, Gibraltar provides a robust framework for strategic residency.

By securing Category 2 or HEPSS status, individuals can achieve limited income tax exposure and a secure and attractive base for global operations. Gibraltar isn’t just a geographical location it’s a lifestyle and business hub for forward thinking individuals and families.

Law