Qualifying (Category 2) Individuals

Individuals who have obtained a Category 2 Individual certificate are subject to a special tax regime. They are liable to a minimum charge of £20,000 and an effective maximum of £26,000 for a full tax year.  Such individuals must have approved residential accommodation in Gibraltar available for their exclusive use and that of their families, but must not have been resident in or engaged in trade, business or employment in Gibraltar suring the preceding five years.

Category 2 individuals may not engage in a trade, business or employment in Gibraltar other than duties which are incidental to any trade business or employment based outside Gibraltar or duties as a director of an Exempt Company.

High Executives Possessing Specialist Skills (HEPPS)

With effect from 1 July 2007 a new category has been established for individuals who possess skills not available locally and which are of particular economic value to Gibraltar, who will occupy a high executive or senior management position, and who will earn more than £100,000 per annum in Gibraltar.  The individuals must have approved accommodation available for their use in Gibraltar and should not have been resident locally during the previous three years.  HEPPS individuals are subject to tax under the Gross Income Based system (see below) on the first £100,000 per annum of income only.  Existing Category 3 individuals who earn more than £100,000 may apply to transfer to this category.