CATEGORY 2 & HEPSS INDIVIDUALS
Category 2 Status – Key Eligibility Requirements
Individuals considering an application for Category 2 status in Gibraltar are required to meet a number of financial, residential and personal eligibility criteria. The principal requirements include:
Minimum Net Worth
Applicants must be able to demonstrate a minimum net worth of £5 million.
Evidence will be required to substantiate the applicant's financial position and may include bank statements, investment portfolios and other appropriate supporting financial documentation.
Approved Gibraltar Accommodation
The applicant must have suitable residential accommodation in Gibraltar, which is required to be approved by the Finance Centre Director.
The accommodation must be available for the applicant's exclusive use throughout the year and satisfy the relevant requirements for Category 2 purposes.
Previous Residence in Gibraltar
Applicants are subject to specific conditions regarding their previous residence in Gibraltar.
An applicant must not have been resident in Gibraltar during the relevant exclusion period prior to the application and must otherwise comply with the applicable residency requirements for Category 2 status.
Employment and Business Activity
Category 2 status is not ordinarily intended for individuals taking up local employment in Gibraltar.
There may, however, be limited circumstances in which certain employment or business activities are permitted. Applicants intending to undertake any form of work or commercial activity in Gibraltar should obtain appropriate professional advice regarding their individual circumstances.
Private Medical Insurance
Applicants are expected to maintain qualifying private medical insurance that satisfies the requirements applicable in Gibraltar.
Appropriate evidence of medical insurance may be required as part of the application process.
Due Diligence and Good Standing
All applicants are subject to the relevant due diligence and suitability checks.
This may include verification of the applicant's identity, financial standing and source of wealth, together with appropriate checks to establish good character and standing.
Important Information
Category 2 status is subject to formal application, approval and ongoing compliance with the applicable Gibraltar requirements. Eligibility should therefore be considered on an individual basis.
Prospective applicants are encouraged to obtain independent legal, tax and financial advice before making an application, particularly in relation to residence, taxation, employment and the structuring of their affairs.
HEPSS Status – Key Eligibility Requirements
For individuals intending to take up senior employment in Gibraltar, the High Executive Possessing Specialist Skills (HEPSS) regime may provide an appropriate alternative to Category 2 status.
HEPSS is specifically intended for senior executives and individuals possessing specialist skills whose employment and expertise are considered to be of value to Gibraltar's economy.
Unlike Category 2 status, HEPSS allows qualifying individuals to take up employment in Gibraltar, while benefiting from a capped assessable income for tax purposes, subject to satisfying the relevant eligibility requirements.
Senior or Specialist Employment
Applicants must be taking up a position requiring high-level executive experience or specialist skills that are considered appropriate for HEPSS status.
The nature and seniority of the role, together with the applicant's professional experience, qualifications and specialist expertise, will form an important part of the application.
Minimum Earnings Requirement
To qualify for HEPSS status, the applicant must earn more than £160,000 per annum from the relevant employment.
The remuneration package and terms of employment will therefore need to satisfy the applicable HEPSS requirements.
Assessable Income Cap
Under the HEPSS regime, assessable employment income is capped at £160,000 per annum for Gibraltar income tax purposes.
This provides qualifying senior executives with greater certainty regarding their Gibraltar tax exposure where their actual earnings exceed the applicable income cap.
Tax Position
HEPSS individuals are taxed under Gibraltar's Gross Income Based System (GIBS).
Based on the £160,000 assessable income cap, the stated annual tax liability is approximately £39,940, subject to the applicable tax legislation and rates.
Professional and Specialist Skills
Applicants are expected to demonstrate that they possess the experience, expertise and specialist skills required for the position.
Supporting documentation may therefore be required to demonstrate the applicant's professional background, qualifications, employment history and suitability for the proposed role.
Gibraltar Employment
HEPSS is particularly relevant to individuals who intend to work for a Gibraltar-based employer in a qualifying senior or specialist position.
This is an important distinction from Category 2 status, which is generally not intended for individuals taking up ordinary local employment.
Category 2 or HEPSS?
The appropriate status will depend upon an individual's personal and professional circumstances.
Broadly, Category 2 status is aimed at qualifying high-net-worth individuals, whereas HEPSS is designed for highly skilled senior executives and specialists taking up qualifying employment in Gibraltar.
Individuals considering either route should obtain appropriate professional advice to determine which status is best suited to their circumstances.
HEPSS – Key Figures
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Requirement
|
HEPSS Position
|
|---|---|
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Assessable income cap
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£160,000
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|
Annual tax liability
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Approximately £39,940
|
|
Tax system
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Gross Income Based System (GIBS) only
|
|
Minimum earnings
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More than £160,000 per annum
|
Important Information
HEPSS status is subject to formal application and approval, and applicants must satisfy the eligibility requirements applicable at the time of application.
Tax rates, thresholds and qualifying conditions may be subject to change. Individuals considering HEPSS status should therefore obtain independent legal, tax and financial advice before making an application or relocating to Gibraltar.
For further information, please visit the government’s official website here
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Queensway Quay - Ragged Staff Wharf
£1,650,000
Interior: N/A | Exterior: N/A
3 beds | 2 baths
QUE182
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Queensway Quay - Ragged Staff Wharf
£3,500 pcm
Interior: N/A | Exterior: N/A
2 beds | 2 baths
QUE029