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Private Clients

Finding a New Home in Gibraltar

If you are one of the many Britons or European nationals looking to escape the increasingly higher taxes levied on private individuals who live off their invested wealth, you may well want to look at the benefits of Gibraltar residency.

At Fiduciary Wealth, we provide a complete tax-led wealth management service for individuals interested in relocating to Gibraltar. As a financial advisory practice, we can take care of all your Gibraltar residency requirements through a single point of contact.

Why Choose Gibraltar?


While Monaco and Switzerland are excellent choices for those seeking a lavish lifestyle, Gibraltar is best suited to those who seek a more discreet alternative with lower entry requirements. With an attractive new fiscal regime, including compelling tax and estate planning benefits, Gibraltar is fast becoming the favoured jurisdiction for wealthy private individuals and businesses looking to reduce their overall personal or corporate tax liability in a perfectly legitimate way.

A leading international financial centre within the European Union, in compliance with all EU directives and regulations, Gibraltar is a politically stable, English-speaking country with a business-friendly culture. The country offers a high quality of life, top-notch security, an excellent education system, and access to all types of sports and leisure activities.

Gibraltar is a self-governing British overseas territory with a legal system modelled on the UK, located at the southern tip of the Iberian Peninsula. Its strategic position at the entrance to the Mediterranean Sea, between Europe and Africa, makes it an ideal location for cross-border trade. Yet Gibraltar lies outside of the VAT (value added tax) zone.

Gibraltar is a small and adaptable jurisdiction and over recent years has repositioned itself as a mainstream European financial centre rather than an offshore tax haven. Indeed Gibraltar is a signatory to the latest initiative in the OECD fight against global tax evasion being an early adopter of the Common Reporting Standards which provides for automatic exchange of information between tax authorities with first reporting due in September 2017 for the 2016 calendar year.

Gibraltar Residency Options


Gibraltar offers different residency options to choose from, depending on your unique financial situation.

Category 2 Individual

Category 2 Individual status would appeal to you if you are looking to protect either trading or earned income from higher rates of taxation in your country of residence or where you declare your income.

However, you must meet certain qualification criteria. These include:

  • Sufficient means to maintain yourself and your family, including a minimum net worth in excess of £2 million (documented by a banker)
  • Purchase of an approved residential property in Gibraltar large enough for your family and for your exclusive use (rentals are permitted, but could lead to challenges from your country of origin)
  • Cannot have been resident in Gibraltar during the previous five years
  • If you intend to be engaged in business or trade in Gibraltar special permissions may be needed and additional local tax may be levied.
  • Private medical insurance cover in place for yourself and your family
  • There is no minimum physical residence requirement in Gibraltar for a Category 2 resident.*

*However, this does not guarantee that an individual will not trigger deemed tax residency in another jurisdiction particularly if residency rules are being flaunted. Individuals who are considering Gibraltar residency should seek professional tax advice and tidy their tax affairs prior to applying for residence.

Advantageous Tax Position for Category 2 Individual Residents


  • Capped at £80,000 of income, with a minimum tax of £22,000 and a maximum tax of £27,560 (Income from businesses based in Gibraltar is assessed outside of the scheme).
  • No inheritance tax
  • No wealth tax
  • No capital gains tax
  • No VAT
  • No tax on savings interest
  • No tax on dividends (from companies on a recognised stock exchange)
  • No tax on pension income from an approved occupational scheme for individuals aged 60 or over
  • 2.5% flat rate income tax on QROPS and QNUPS pensions in drawdown
  • Double taxation relief

Self Sufficiency


Self sufficiency would appeal to you if you are in receipt of mainly investment and retirement income.

The qualifying criteria include the following:

  • Two references from a banker, lawyer, or accountant confirming that you are of a good standing and repute
  • A letter from the bank or a 3 month bank statement demonstrating pension payments or other passive income in amounts demonstrating full financial support
  • Private medical insurance for yourself and your dependents (UK Pensioners are exempt)
  • Evidence of suitable accommodation in Gibraltar (either a property rental contract or a title deed)

Advantageous Tax Position for Individuals seeking Self Sufficiency


Those who become residents under self sufficiency pay NO tax in Gibraltar, except on income earned or remitted to Gibraltar, with a 2.5% flat income tax rate on QROPS and QNUPS pensions in drawdown.

NOTE: while a Category 2 resident can switch status to self sufficiency, an individual in self sufficiency status cannot switch to Category 2.

NOTE: A person becomes ordinarily resident in Gibraltar if he or she visits or spends 183 days or more in the country during a single tax year, or more than 300 days in three consecutive tax years. An ordinarily resident individual is subject to tax in Gibraltar on his/her worldwide income (subject to double-tax relief.)

Why Work With Us?


Fiduciary Wealth is the private wealth arm of the Fiduciary Group. We can take care of all your Gibraltar residency requirements -- including tax optimization, cross-border financial planning and investment management -- through a single point of contact.

Here are additional reasons why clients choose to work with us:

  • Trust:
    We're affiliated to Gibraltar's oldest legal practice founded in 1892.
  • Expertise:
    We're the leading providers of tax optimized residency solutions for expatriates.
  • Highly Regulated:
    We operate from a highly regulated British financial centre with an FCA authorised office in central London.
  • Guarantee:
    We will refund 50% of our fees should your residency application be unsuccessful.

Testimonials


When contemplating retirement to Gibraltar last year I was drawn to the Fiduciary Wealth Website which I found well laid out, easy to navigate and thoroughly informative. Having left my contact details I was contacted by Paul Correa within a very short time and soon set up a face to face meeting in which the benefits of such a move and path to residency were clearly explained. The process was expertly handled by Paul and his team, keeping me informed of the progress every step of the way and always available for additional consultation as necessary. The residency service was accompanied by comprehensive financial advice without any pressure. Tax planning experts were on hand for complex international tax issues and meetings arranged in short order. I have no hesitation in thoroughly recommending Paul and his team to make the residency process completely stress-free and provide a one-stop shop for comprehensive service for anyone contemplating the move to this delightful location.

Martin Hutchison
Gibraltar

Fiduciary handled the residency application with efficiency and I was very pleased with the service I received.

R J
Gibraltar

In considering my residency options I visited the Gibraltar residency website of Fiduciary Wealth www.gibraltarresidency.co.uk and subsequently contacted Andrew Hosking. The advice I received was second to none and Andrew and his team could not have been more helpful, fully explaining the process and making all the necessary arrangements to secure my residency certificate and assist with tax and ancillary matters relating to my move to Gibraltar.

Dennis Croft
Gibraltar

 

 

 

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