Gibraltar Tax Guide 2025/26
Gibraltar's tax regime is one of the most competitive in Europe. There is no VAT, no capital gains tax (with limited property exceptions), no wealth tax, and no inheritance tax. Corporate profits are taxed at 15%, and personal income tax is capped at favourable rates under specialist residency programmes.
Taxes Gibraltar Does Not Have
No VAT
No Capital Gains Tax*
No Inheritance Tax
No Wealth Tax
*From January 2025, profits from property sales are taxable if a person owns 5 or more taxable properties over 5 consecutive tax periods. Primary residences are excluded.
Corporate Tax
Gibraltar taxes companies on profits that accrue in or are derived from Gibraltar (territorial basis). Companies generating profits entirely outside Gibraltar are not subject to corporate tax. The rate was increased from 12.5% to 15% in July 2024.
A higher rate of 20% applies to utility and energy providers. Gibraltar has also enacted the Global Minimum Tax Act 2024, implementing Pillar Two rules for multinational groups with €750m+ revenue.
Key Features
- No withholding tax on dividends paid to non-residents
- No withholding tax on interest or royalties
- Tax losses can be carried forward indefinitely
- Group relief available for Gibraltar companies within the same group
- Annual returns due within 9 months of accounting period end
- Late filing penalties range from £100 to £5,000 (increased January 2025)
Personal Income Tax 2025/26
Gibraltar's tax year runs from 1 July to 30 June. Residents choose between two systems — the Gross Income Based System (GIBS) or the Allowance Based System (ABS). Taxpayers are assessed under whichever produces the lower liability.
GIBS (Gross Income up to £25,000)
| First £10,000 | 6% |
| £10,001–£17,000 | 20% |
| Balance | 28% |
GIBS (Gross Income over £25,000)
| First £17,000 | 16% |
| £17,001–£25,000 | 19% |
| £25,001–£40,000 | 25% |
| £40,001–£105,000 | 28% |
| Over £105,000 | 25% |
Persons earning up to £11,450 per annum are exempt from tax. Tapering relief applies for income between £11,451 and £19,500.
The ABS allows personal allowances (£3,455), spouse (£3,455), and deductions for mortgage interest, life assurance, and health insurance. Tax bands under ABS are 14%, 17%, and 39%.
Transaction Tax (From April 2026)
As part of the UK-EU agreement on Gibraltar's future relationship with the Schengen area, a new Transaction Tax replaces the current import duty regime from 10 April 2026. This is not a VAT — it is levied only at the point of importation, with no input/output tracking for businesses.
0%
Food, water, medicines, books, electricity
5%
Children's clothing, bicycles
15%
Standard rate (year 1), rising to 17% by year 3
Special Tax Residency Programmes
Category 2 (Cat 2) →
For high-net-worth individuals. Tax is payable on the first £118,000 of assessable income, giving a maximum annual tax bill of £42,380 and a minimum of £37,000. No tax on income above the cap.
Net worth requirement: £2 million
HEPSS →
For high-earning professionals with specialist skills. Fixed annual tax of £39,940 on the first £160,000 of gross income. No tax on income above this threshold.
Minimum salary: £160,000+
Planning a Move to Gibraltar?
Our specialist relocation partner can assess your eligibility for Cat 2, HEPSS, or standard residency and guide you through every step.