GIBRALTAR Law and Practice Contributed by: Stuart Dalmedo, Adrian Pilcher and Louise Anne Turnock, ISOLAS LLP
• first-time home purchase; • mortgage interest;
For third time or more buyers and companies pur - chasing properties between £200,000 and £350,000, the stamp duty rate is: • 2% where the value of the property is between GBP0 and GBP250,000; and • 5.5% where the value of the property is between GBP250,001 and GBP350,000. For third time or more buyers and companies pur - chasing properties over GBP800,000, the stamp duty rate is: • 3% where the value of the property is between GBP0 and GBP350,000; • 3.5% where the value of the property is between GBP350,001 and GBP800,000; and • 4.5% where the value of the property is over GBP800,000. Mortgages Stamp duty is also payable on mortgages or further advances secured in Gibraltar, at the following rates: • mortgage of GBP200,000 or less at 0.13%; • mortgage of over GBP200,000 at 0.20%; and • releases of mortgage at 0.03% of the amount bor - rowed. Tax on sale of shares of companies In general, tax is not payable on the sale of shares in a Gibraltar company, unless that company owns real estate in Gibraltar. Import duty Goods that are imported into Gibraltar are subject to import duty at varying rates (with some exemptions). Social insurance Social insurance contributions are payable by every employee or self-employed person in any week in which they work. • Employee contributions are 10% of gross earnings, subject to a minimum of GBP14.34 per week or GBP62.11 per month and a maximum of GBP40.79 per week or GBP176.76 per month.
• pension contributions paid; and • medical insurance premiums paid. The tax rates under the GIBS are as follows. • Individuals with gross income of up to GBP25,000: (a) 6% on the first GBP10,000; (b) 20% on GBP10,001 to GBP17,000; and (c) 28% on the balance. • Individuals with gross income of more than GBP25,000: (a) 16% on the first GBP17,000; (b) 19% on the next GBP8,000; (c) 25% on the next GBP15,000; and (d) 28% on the next GBP65,000. (e) 25% on the balance. Any taxpayer with income of GBP11,450 or less is not liable to income tax in Gibraltar. Other Rates of Tax, Duties and Contributions Stamp duty Stamp duty applies to the purchase of Gibraltar prop - erty and may also apply to the acquisition of shares in a company that owns Gibraltar residential real estate. There is also a fixed duty of £10 on standalone share or loan transactions. Gibraltar property rates For first and second time buyers, the stamp duty rates are as follows: • 0% where the value of the property does not exceed GBP300,000; • 5.5% where the value of the property exceeds GBP300,000 but is less than GBP350,000; • 3.5% where the value of the property exceeds GBP350,000 but is less than GBP800,000; and • 4.5% where the value of the property exceeds GBP800,000. For third time or more buyers and companies pur - chasing properties under £200,000, no stamp duty is payable.
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