Category 2 Residency
Gibraltar's Category 2 (Cat 2) programme is designed for high-net-worth individuals who want to establish tax residency in Gibraltar. It offers a capped tax liability, meaning you'll never pay more than £42,380 per year in personal income tax regardless of your total worldwide income.
Key Facts at a Glance
£5M
Net worth (new applicants)
£42,380
Maximum annual tax
£37,000
Minimum annual tax
3 yrs
Certificate renewal
How the Tax Cap Works
Under Cat 2, you are taxed under the Allowance Based System (ABS) on the first £118,000 of assessable income. This produces a maximum tax bill of approximately £42,380. A minimum tax liability of £37,000 per year (£3,083.33/month) applies regardless of actual income.
No tax is payable on income above £118,000. This means whether you earn £200,000, £2 million, or £20 million, your Gibraltar tax bill remains the same.
Compared to the UK, where a £500,000 income would attract approximately £198,000 in income tax and National Insurance, a Cat 2 resident pays £42,380 — a saving of over £155,000 per year.
Eligibility Requirements
Net Worth of £5 Million+ (New Applicants)
Applicants from June 2026 must demonstrate a minimum net worth of £5 million through audited financial statements or equivalent documentation, plus a £5,000 application fee. Existing Cat 2 holders are fully grandfathered at the previous £2 million threshold. (Change confirmed gov.gi PR 469/2026, June 2026.)
Not Previously Resident
You must not have been resident in Gibraltar during the 5 years preceding your application.
Approved Accommodation
You must have approved residential property in Gibraltar for your exclusive use (owned or rented). The property cannot be sublet. Browse options on Buy Property Gibraltar or Rent Gibraltar.
Private Medical Insurance
You must maintain private medical insurance cover in Gibraltar for yourself and any dependants.
No Employment in Gibraltar
Cat 2 holders cannot engage in trade, business, or employment in Gibraltar, with limited exceptions for directors of exempt or non-trading companies.
Important: Residency Application Suspension
As of October 2025, new residency applications by UK/EEA nationals were paused. New residency criteria were announced in June 2026, but the enabling Bill has not yet passed Parliament, so these criteria are being applied administratively as proposed policy rather than settled law.
Existing Cat 2 holders and applications submitted before 6 October 2025 are unaffected. The Chief Minister may grant exceptions where it is in Gibraltar's interests.
Additionally, the timeline for permanent residency has been doubled from 5 to 10 years, and full Gibraltarian status from 10 to 20 years.
Application Process
- Engage a local adviser — a Gibraltar-based tax adviser or law firm will prepare and submit your application.
- Provide financial evidence — audited accounts, bank statements, or certified net worth statements demonstrating £5M+ (new applicants) or £2M+ (existing holders, grandfathered), plus the £5,000 application fee for new applicants.
- Secure approved accommodation — sign a rental agreement or purchase property in Gibraltar.
- Arrange private medical insurance — obtain cover with a Gibraltar-approved insurer.
- Submit to the Gibraltar Finance Centre — your adviser submits the full application pack.
- Certificate issued — once approved, a Cat 2 certificate is issued, renewable every 3 years.
Spouse and dependent children can be included on the same application. Professional fees for a Cat 2 application typically range from £3,000 to £8,000, separate from the £5,000 government application fee for new applicants.
Interested in Category 2?
Get a personalised assessment of your eligibility and find out if Cat 2 is the right programme for your situation.