THINKING OF TAKING UP
CATEGORY 2 INDIVIDUALS
There has been a continuous increase in the demand Category 2 status, as a result of the Government of Gibraltar’s low tax limits offered to encourage high net worth individuals to establish a residence in Gibraltar.
The benefits of the Category 2 status and residency in Gibraltar are attractive for individuals from countries where levels of personal income tax are particularly high, such as Britain, Germany, Canada, Switzerland and France. A Category 2 Individual will have their Gibraltar tax capped to the maximum calculated on the first £80,000 of assessable income, with a minimum tax payable per annum of £22,000 and a maximum of £27,560. RATES OF TAX ON ASSESSABLE INCOME
Maximum tax payable £
The maximum amount of Category 2 tax payable for the tax year 01.07.2016 to 30.06.2017 is £27,560 as set out below:
The first £4,000 of taxable income at the rate of 14% The next £12,000 of taxable income at the rate of 17% The next £64,000 taxable income at the rate of 39% £80,000
560 2,040 24,960 £27,560
There are no allowances or deductions. Tax is payable only up to the maximum assessable income of £80,000. Any assessable income in excess of £80,000 is not subject to tax in Gibraltar.
OTHER FINANCIAL INCOME
The Category 2 individual pays a minimum annual tax of £22,000 which equates to the tax on income of £65,744 in the financial year 2016/2017 after which only further amounts remitted to Gibraltar suffer further taxation but the maximum tax payable in the year is capped at £27,560.
Portland House Glacis Road PO Box 204 Gibraltar
Published on Apr 23, 2015