GIBRALTAR Law and Practice Contributed by: Emma Lejeune, Stuart Dalmedo, Nicholas Isola, James Castle and Louise Anne Turnock, ISOLAS LLP
Companies could also be subject to import duty on the importation of certain goods, if applica - ble. Stamp duty could also be payable on the trans - fer of a Gibraltar property owned by a company. Gaming duty is levied at 0.15% on the gross profits of holders of a bookmaker, betting inter - mediary and gaming operator’s licence. The first GBP100,000 of gross profits is exempt from this duty. 5.3 Available Tax Credits/Incentives There is no capital gains tax, estate duty, wealth tax, gift tax or inheritance tax in Gibraltar. Category 2 Status Gibraltar offers the opportunity for high net worth individuals to obtain Category 2 status which places a cap over the tax liability of that individual. Tax is applied to the first GBP118,000 of assessable income (including worldwide income) meaning that a Category 2 individual will pay a maximum of GBP42,380 tax per annum, subject to a minimum tax payable of GBP37,000 per annum (current rates). The requirements for Category 2 status are as follows: • must have available for exclusive use approved residential accommodation in Gibraltar for the whole year of assessment (can be either purchased or rented); • must have a minimum net worth of GBP2 million; • must have private medical insurance (which must meet the minimum requirements of cover);
• must not have been resident in Gibraltar for five years immediately preceding the Catego - ry 2 application; and • must pay an amount equivalent to the maxi - mum tax payable (currently GBP42,380) as part of a Category 2 application, which will be held as a deposit and used to settle the individual’s final tax liability upon leaving Gibraltar. High Executive Possessing Specialist Skills (HEPSS) Status HEPSS status is a special employment tax sta - tus available to individuals with specialist skills who intend to relocate to Gibraltar to take up employment. An individual in respect of whom a HEPSS certificate is issued shall be charged to tax on the first GBP160,000 per annum of their income under the Gross Income Based tax system of their assessable income only. This would mean that an individual with HEPSS status would pay a fixed amount of GBP39,940 tax per annum (current rates) regardless of their employment income. The requirements for HEPSS status are as fol - lows: • must have available for exclusive use approved residential accommodation in Gibraltar for the whole year of assessment (can be either purchased or rented); • must possess skills that are necessary to pro - mote and sustain economic value in Gibraltar; • must possess skills that are not readily avail - able in Gibraltar; • must not have been resident in Gibraltar for three years immediately preceding the HEPSS application; and • must earn more than GBP160,000 per annum from that employment.
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