RSM Gibraltar

Gibraltar tax: background

Gibraltar is a well-known and regulated international finance centre with a competitive and attractive tax regime.

Gibraltar has a territorial basis of corporate taxation, resulting in income tax only being payable on income accrued or derived in Gibraltar. 

Further, Gibraltar does not charge capital gains tax, inheritance tax, wealth tax, gift tax, VAT, withholding tax and nor does it levy tax on interest or gains made on monetary investments. In addition, there is no taxation on dividends and interest paid by a Gibraltar Company to a non-resident recipient which includes investors in a fund. There is also no withholding tax on dividends or interest.

Corporation tax

Corporation tax in Gibraltar is a flat 10% of taxable profits accrued and derived in Gibraltar.  

There is also an annual Gaming tax levied at the rate of 1% of relevant income (gaming yield for online casinos and bets placed for online bookmakers), capped at £425,000 with a minimum payable of £85,000.

Individuals

Individuals pay comparatively higher taxes on their income in Gibraltar unless they are able to apply and take advantage of Gibraltar's special 'Category 2' tax status available to high-net-worth individuals or 'HEPSS' tax status available to expatriate senior executives.

Gibraltar currently operates two personal income tax systems with each individual tax payer able to elect they system most beneficial to them: 

  • The Allowance Based System ('ABS') in which individuals pay tax at higher rates but can enjoy a number of general allowances; or
  • The Gross Income Based System ('GIBS') which offers minimal allowances but lower overall rates of tax.  

 

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