| Updated | November 2026 |
| Category 2 | tax on at most £118,000 of income: £37,000 to £42,380 a year; application fee £5,000 |
| HEPSS | salary above £160,000, tax £39,940 a year |
| Residency | Residency Regulations 2026, in force since 14 July 2026 |
| No tax on | capital gains, inheritances; no VAT |
| Corporation tax | 15 per cent since 1 July 2024 |
| EU list | not listed |
The new residency law since July 2026
The treaty between Gibraltar and the European Union came with a rewrite of the residency rules. The Residency Regulations 2026 have applied since 14 July 2026. They set out the categories that can lead to a residence permit: employees, the self-employed, students, Crown servants and the armed forces, existing and permanent residents. Holders of a Gibraltar ID card need no permit.
An employee needs a contract of at least one year paying at least Gibraltar's average wage, and both employees and the self-employed must be no older than 55. Beyond that, the government can direct that a permit be granted in an individual case where it benefits Gibraltar's economy and puts no burden on public services. A permit runs for one year; the application costs £250 and a renewal £20. One genuinely new step is a check with the Schengen authorities: if they object, Gibraltar has to refuse.
In practice that means two separate questions. Category 2 and HEPSS decide how you are taxed. Whether you may live on the Rock, and under which heading, has to be settled before any tax application goes in. The decision sits with the Director of the Department of Immigration and Home Affairs.
Category 2: a ceiling on tax for wealthy residents
A Category 2 individual is taxed on a capped slice of income only. Assessable income is limited to £118,000 a year, which at current rates means a tax bill of at least £37,000 and at most £42,380 a year. A spouse and children can rely on the same certificate.
You need approved accommodation in Gibraltar, bought or rented, available to you alone for the whole tax year. Since 22 June 2026 the application fee has been £5,000 instead of £1,233, and with the application you lodge a refundable advance payment equal to the maximum tax.
In June 2026 the government announced further changes: a minimum net worth of £5 million instead of £2 million for new applicants, and a statement that Category 2 carries no entitlement to state schools or public healthcare. Both points come from a government press release; we found no wealth threshold in the Rules themselves. Plan on the announcement applying, and check where things stand before you apply.
HEPSS: for senior executives on a high salary
HEPSS stands for High Executive Possessing Specialist Skills. It is built for executives taking a role in Gibraltar that pays more than £160,000 a year. Only the first £160,000 of income is assessed, which at current rates means a tax bill of £39,940 a year. Anyone who has lived or worked in Gibraltar in the 36 months before applying will normally not qualify. Since 1 August 2026 the application fee has been £1,264.
HEPSS fits managers who take a real job on the Rock, typically in financial services or online gaming. Their residence permit usually follows from the employee category of the new rules.
Ordinary tax and companies
Without a special status you choose between two systems. Under the Allowances Based System you pay 14 per cent on the first £4,000, 17 per cent on the next £12,000 and 39 per cent on the rest. Under the Gross Income Based System the rates climb from 16 through 19 and 25 to a top rate of 28 per cent. There is no VAT, no capital gains tax and no inheritance tax. Buying property above £350,000 attracts stamp duty of 3 to 4.5 per cent.
Corporation tax has been 15 per cent since 1 July 2024, up from 12.5 per cent. Large international groups fall under the global minimum tax of 15 per cent. Companies are formed under the Companies Act 2014. If you mainly need an account on the Rock, our article on banking in Gibraltar covers the banks.
The EU list and your home country
Gibraltar is not on the EU list of non-cooperative jurisdictions for tax purposes, neither in Annex I nor in Annex II of the version of 9 October 2026.
Not being listed does not settle what your home country makes of the move. A regime that caps your tax at a fixed amount is exactly what many tax authorities look at hard. Your home country may keep taxing you for years after you leave if your business and assets stay there, may charge tax on your company shares when you emigrate, and may apply its own defensive rules to low-tax territories. Check those rules before you sign a lease, not after. How the EU list works is explained on our page on the EU list of tax havens.
Who Gibraltar suits
Category 2 suits wealthy people who want a predictable, low annual tax bill, want to live in southern Europe and can get the residency question answered. HEPSS suits executives with a job in Gibraltar. The Rock suits people over 55 poorly if they arrive without a job or a business and have no route through the government's discretion. If you are weighing the Channel Islands instead, start with Jersey.
From twenty years of business in the British territories: Gibraltar is small, the service providers all know each other, and the prices reflect it. Arrive with a finished plan and you will be served quickly.
Sources: Gibraltar Income Tax Office: Qualifying individuals (Category 2, HEPSS); Gibraltar Laws: Legal Notice 127/2026 (Category 2 fee); Gibraltar Laws: Legal Notice 295/2026 (HEPSS fee); HM Government of Gibraltar: Changes to the Category 2 regime (469/2026); HM Government of Gibraltar: Residency Regulations 2026 (548/2026); Gibraltar Income Tax Office: Corporate tax; Council of the EU: conclusions of 9 October 2026 on the EU list