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Gibraltar: Offshore Legal and Tax Regimes

Employment and Residence

There are no special privileges for the employees of non-resident or offshore entities in Gibraltar, but see above for the rules regarding High Net-Worth Individuals and Expatriate Executives. See also Personal Taxation - Residence and Liability for Taxation.

For taxation purposes, an individual is either resident or non-resident, and nationality is not a factor in determining tax status. An individual is considered resident in Gibraltar if he resides there for more than 183 days in any one tax year (1st July to 30th June in the following year).

A non-resident individual will be taxed on income derived from, accrued or received in Gibraltar; however payments from exempt or qualifying companies are tax-exempt, as is bank interest.

Property bought by a non-resident may be owned by an individual applicant or joint applicants, or alternatively, in the name of a company of which the applicant is the 100% beneficial owner and over which he/she has full and effective control. In fact there are tax advantages if the property is purchased through a Gibraltar company. It is not essential that the property be purchased prior to approval of an application. However, the property to be purchased must be stated before an agreement will be entered into between the applicant and the vendor of the property so that on payment of a refundable deposit the property would be reserved for the applicant until the application is considered by the Government. Once the application is approved the applicant, on completion of the purchase of the property, will obtain a permit of residence.

A permit is renewable after a specified term providing the requirements are met and the property is owned by the applicant. The holder of a residence permit need not live in Gibraltar and is not automatically entitled to social security or citizenship. However, the resident's children may attend local schools and are entitled to the same benefits as other local residents.

If a non-EU national wishes to stay in Gibraltar other than through the property 'doorway', he must try to find employment, for which he will receive a work permit only if there are no Gibraltarians able and willing to perform it. Such individuals will be given residence permits for shorter or longer periods depending on the nature of the work for which they have a permit. The government can deny a non-EU national the possibility of buying residential property.

Non-Gibraltarians need work permits, issued under the Control of Employment Ordinance. A work permit cannot be refused to an EU national.



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