| Situated at the southernmost tip of Spain, Gibraltar guards the gateway to the Mediterranean. Tourists to Gibraltar annually take in the unique combination of warm climate, Anglo-cosmopolitan spirit, unique culture, wildlife and its geographical location as the “stepping stone between Europe and North Africa.” The territory's residency legislation-specially designed to target high net worth individuals-is also attracting the world's wealthy. Some of the many advantages to acquiring a residency permit in Gibraltar include zero inheritance tax, no VAT, no capital gains tax, nor wealth tax. Additionally, “No exchange control regulations exist in Gibraltar on the investment of capital, and property may be purchased anywhere in the world without restriction.” First introduced in 1992 as the Qualifying (High Net Worth)Individuals Rules 1992, and amended in 1999 by the Qualifying (Category 2) Individuals Rules 1999, the Government of Gibraltar has issued guidelines highlighting factors which are relevant in considering applications for residency. - the purchase of a property sufficient in size to accommodate the applicant and all his family for residential purposes. The property must be situated in Gibraltar, and whilst the granting of the residence permit would not depend on the value of the property purchased, it is likely that the Government will look more favourably on applicants who purchase luxury property rather than a purchaser of low-cost housing.
- the applicant must establish that he is in good health.
- the applicant must establish that he has adequate financial resources to maintain himself and his family without recourse to public funds.
The total number of individuals who have become residents in Gibraltar under the Category 2 Individual residency program is 385, according to a publication by Marrache & Co. Applicants are required to submit a curriculum vitae detailing qualifications and work experience and two references from recognised and established professionals. One of the references must be from a bank, and the other from a law or accountancy firm confirming the individual has at least £2 million-US$4 million on hand. That the “individual has sufficient means to maintain himself and his family” and “that the individual has private medical insurance to cover both him and his family whilst residing in Gibraltar” is also information that the government verifies. “Although it is not necessary for individuals to declare their worldwide wealth or earnings.” A copy of the applicant's passport must also be included, along with evidence of the exclusive use of approved residential real estate in Gibraltar. The property may be leased or purchased. In addition, every application to the Finance Centre Director or renewal must be accompanied by a non-refundable fee of £1,000- US$2000. Those who qualify as tax residents under the program will pay tax on the first £60,000 or US$120,000-of assessable income, which results in a maximum liability of £22,000-US$44,000-and a minimum tax liability of £18,000- US$36,000. Only income received in Gibraltar is subject to tax. High net worth individuals may also include the income of their spouses and children with their own for tax purposes. “A Category 2 Individual may not engage in a trade, business or employment in Gibraltar other than duties incidental to any trade, business or employment based outside Gibraltar or duties as a Director of an Exempt company.” Under the program, after five years of residency in Gibraltar, high net worth individuals may apply to the governor for a British passport.
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