Gibraltar Marks 25th Year of HNWI Residency Scheme
by Jason Gorringe, Lowtax.net, London
17 February, 2018
Gibraltar is marking the 25th year of its special tax residency program for high-net-worth individuals, known officially as Category 2 status, which limits taxation on worldwide income to a maximum of GBP30,000 (USD41,958) per year.
Individuals with net assets in excess of GBP2m are able to establish residency in Gibraltar under the scheme provided they have not been resident in the past five years. They are free to choose whether to rent or purchase a residence.
Holders of Category 2 status are liable to income tax on only the first GBP80,000 of income. The maximum income tax payable under the scheme is GBP30,000 for the full year, and the minimum is GBP22,000.
Category 2 status is an important part of Gibraltar's high net wealth offering, according to Gibraltar Finance, the agency responsible for promoting Gibraltar as a domicile of choice for financial services. It said: "When combined with the fact Gibraltar does not charge wealth tax, capital gains tax nor inheritance tax, Category 2 status offers a very good opportunity for individuals wanting tax efficiency."
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