Living in Gibraltar: taxation and tax residency

In Gibraltar, the tax authorities calculate personal income tax using two systems: one with allowances, the other based on gross income. A person is considered "ordinarily resident" after 183 days of presence in the year, or after more than 300 days over three consecutive years. The tax authority's website indicates that there is no capital gains tax. The fiscal year runs from July 1st to June 30th. This page does not address social security contribution rates, residence permits, or local savings: these topics could not be reviewed.

Resident for 183 days or more, or for more than 300 days over three years

According to the Revenue Office, a person is considered "ordinarily resident" if they are present in Gibraltar for at least 183 days in a year, or more than 300 days over three consecutive years, regardless of their domicile. Anyone who is not "ordinarily resident" is considered a non-resident. This definition comes from a single page, reproduced without the text of the law; it must be verified before any decision is made.

What is taxed: income generated in Gibraltar or received by a resident

The page describes the tax as follows. It applies to employment or self-employment income generated in, from, or received in Gibraltar (or received elsewhere) by an ordinarily resident. Dividends, pensions, and office-based remuneration generated, generated, or received outside Gibraltar are also taxable for a resident. Rents and premiums on real estate located in Gibraltar are taxable. Income taxed where it is generated but not received in Gibraltar is generally not taxable there. The page does not detail the exceptions: we are not aware of them.

On the French side, the BOFiP indicates that income earned abroad by a person domiciled in France is taxable "even if it has not been transferred to France" (BOI-INT-DG-20-10-10, § 70).

Two calculation systems: ABS and GIBS

Personal allowance: £3,455 per year. Spousal allowance: £3,455, which the PAYE page states can only be claimed by one spouse. These amounts come from a table on the PAYE page titled "Amount 2025/26" and from the main Income Tax Office page, which does not specify a tax year: they are given for the 2025/26 tax year, and their value for 2026/27 has not been confirmed. The pages consulted do not display an update date.

Under the GIBS (Global Income Tax Base), deductions are limited: loan interest £1,500, home purchase allowance £7,500, registered pension contributions £1,500, registered health insurance £3,000. For an income below £25,000, the page shows 6% of the % (one-year tax rate) on the first £10,000, 20% of the % on the next £7,000, and 28% of the % on the remaining amount. We do not include the rate for the remaining amount above £105,000; its application requires verification.

The guide to filing the 2026 tax return indicates that taxpayers can choose either system, but the Income Tax Office will apply the one that results in the lower tax rate. Eligibility may depend on the spouse's choice.

Fiscal year from July 1st to June 30th, electronic filing

The tax year runs from July 1st to June 30th. Returns are filed electronically. For the tax year from July 1st, 2025 to June 30th, 2026, the deadline is November 30th, 2026. Employees receive a tax code; otherwise, the employer is required to withhold 20 % from wages. Self-employed individuals register with the Department of Employment and then with the Income Tax Office (using form SE1). Their advance payments are made in two equal installments, on January 31st and June 30th. A late return incurs a penalty of £50 from the first day, an additional £300 after three months, and an additional £500 after six months.

Category 2 status: income capped at £118,000

The administration's "qualifying individuals" page outlines specific statuses, including high-net-worth individuals (HNWIs) and Category 2. These individuals are taxed only under the allowance system. Their gross taxable income is capped at £118,000 per year. The annual tax liability is at least £37,000 and, according to this page, at most £42,380 as long as tax rates remain at their current levels ("As tax rates presently stand"). A certificate is mentioned for these individuals, but the two official pages consulted do not identify its issuer in the same way ("Gibraltar Finance" on one, "Finance Centre Director" on the other). We cannot determine the correct information; it should be verified with the source. The ABS scale applied to £118,000 without deduction gives £42,380 (£560 + £2,040 + £39,780, our calculation), which is the maximum cited on the page.

The conditions for obtaining this status, particularly regarding housing and the length of prior non-residence, are not worded the same way on two pages of the administration's documents. We will not repeat them here.

Pensions, capital gains, inheritances, interest

• Pensions. From age 60, pension income is taxed at 0%. Before age 60, it is taxable. State pensions (Old Age) are exempt. This page does not cover foreign pensions.
• Capital gains and inheritances. No capital gains tax. Inheritance tax (estate duty) was abolished on April 1, 1997.
• Interest and dividends. Interest is generally not taxable, except for interest from approved lending or deposit activities or business loans exceeding £100,000. Dividends from Gibraltar companies are taxable for a resident, with a corporate tax credit paid.
• Foreign tax. Unilateral relief limited to the lesser of the foreign tax paid and the Gibraltar tax on that income.

Social insurance contributions

Employed and self-employed individuals in Gibraltar are required to have health insurance. Since April 1, 2007, weekly contributions are income-based, with a minimum and maximum amount. These contributions fund, among other things, old-age pensions, unemployment benefits, and healthcare through the Group Practice Medical Scheme. The page does not provide rates or amounts. The existence of a social security agreement with France is not specified here.

Salary of £60,000: ABS or GIBS, numerical example (fictitious profile)

Situation. A fictitious executive is ordinarily resident in Gibraltar. Their gross taxable income is £60,000 for the fiscal year. They have no deductions other than the personal allowance of £3,455, the amount shown in table 2025/26 on the PAYE page; this example assumes that this amount applies to the fiscal year in question.

Issue. He wants to know which of the two systems best applies to his situation.

Strategy. He recalculates in both systems using the published tax brackets, without deductions. He also verifies, with the Income Tax Office, the eligibility criteria and the impact of deductions on his case.

Result. Under the allowance system, taxable income is £56,545 and tax is £18,412.55, or 30.69% of income. Under the gross income system, tax is £13,590, or 22.65% of income. The difference is £4,822.55 in favor of the gross income system in this scenario. The calculation does not include social security contributions or deductions other than the allowance.

If you are arriving from France

French tax residence is determined according to the criteria of Article 4 B of the French General Tax Code (CGI): only one of three categories is required (BOI-IR-CHAMP-10, § 70 and § 310). A stay of more than six months is not an absolute criterion (§ 150). The principal activity and the center of economic interests are also taken into account (§ 220, § 230). In the event of departure, form 2042 covers the period from January 1st to the date of departure, form 2047 covers foreign-source income, and form 2042-NR covers French-source income from departure to December 31st.

What this page does not cover

It does not cover social security contribution rates, stamp duties and residence permits (pages illegible), local savings, or the conditions for obtaining Category 2 status. It also does not cover the Franco-British convention, which is not included in the French list for Gibraltar. These points should be verified with a professional based in Gibraltar.

What changes depending on your situation

• Your number of days spent in Gibraltar, over the year and over three years.
• Your income level and deductions will guide the choice between the two systems.
• Your status: employee, self-employed, retired, or special status with certificate.
• Your French tax residence on the date of departure and your income retained in France.

A project is prepared based on the facts in your case. No outcome is guaranteed in advance.