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Gibraltar – Taxation

Gibraltar is a British overseas territory located at the southern tip of the Iberian Peninsula. The territory has its own taxation system that is governed by the Gibraltar Finance Centre. In this article, we will discuss how the taxation system works in Gibraltar, double taxation agreements, the main taxes expats need to be aware of, special tax breaks that could apply to expats, how and when to file a tax return as an expat, and tax exit procedures for anyone leaving Gibraltar to move abroad.

The Taxation System in Gibraltar

The taxation system in Gibraltar is based on the UK tax system, with some differences. The tax year in Gibraltar runs from July 1st to June 30th, and taxes must be filed by September 30th of the following year.

There are several taxes that individuals and businesses in Gibraltar are required to pay. These include income tax, corporate tax, value-added tax (VAT), and social insurance contributions.

Double Taxation Agreements

Gibraltar has signed double taxation agreements with several countries, including the United Kingdom, Spain, and the United States. These agreements are designed to prevent individuals and companies from being taxed twice on the same income.

If you are an expat living in Gibraltar and your home country has signed a double taxation agreement with Gibraltar, you may be able to avoid being taxed twice on your income. However, it is important to check the terms of the specific agreement as they can vary between countries.

Main Taxes in Gibraltar

Income tax


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All residents in Gibraltar are required to pay income tax on their worldwide income. The income tax rate varies depending on income levels and ranges from 6% to 28%.

Corporate tax

Companies registered in Gibraltar are required to pay corporate tax on their profits. The tax rate is currently 10%.

Value-added tax (VAT)

The VAT rate in Gibraltar is currently 0% for most goods and services. However, some goods and services, such as tobacco and alcohol, are subject to VAT.

Social insurance contributions

All employees in Gibraltar are required to make social insurance contributions. The employer and employee each contribute to social insurance, with the total contribution being 20% of the employee’s salary.

Special Tax Breaks

There are several special tax breaks that could apply to expats living in Gibraltar. These include:

High executive taxpayer status

Expats who meet certain criteria may be eligible for high executive taxpayer status. This status allows for a lower tax rate of 10% on income over £120,000 per year.

Pension income

Expats who receive pension income may be eligible for a tax cap, which limits the amount of tax that they are required to pay.

Filing a Tax Return in Gibraltar

If you are an expat living in Gibraltar, you are required to file a tax return if you meet certain criteria. If you are a resident in Gibraltar, you are required to file a tax return if your income exceeds £11,000 per year. If you are a non-resident and earn income within Gibraltar, you must also file a tax return.

The tax return must be filed annually by September 30th of the following year. The Gibraltar Finance Centre provides an online platform where you can file your tax return, and it is recommended that you seek the assistance of a tax professional to ensure that you file correctly and take advantage of any applicable tax breaks.

Tax Exit Procedures for Gibraltar

If you are leaving Gibraltar to move abroad, you must complete a tax exit procedure with the Gibraltar Finance Centre. This procedure involves filing a tax return for the year in which you leave, paying any outstanding taxes, and obtaining a tax clearance certificate.

The tax clearance certificate is required to obtain a residence permit or visa in another country. Failure to complete the tax exit procedure can result in a fine and other legal consequences.

Gibraltar has a taxation system based on the UK tax system, with some differences. Expats living in Gibraltar may be eligible for special tax breaks, and it is important to file a tax return correctly and complete the tax exit procedure if leaving the territory. It is recommended that you seek the assistance of a tax professional to ensure that you comply with all tax regulations in Gibraltar.


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