03 Dec 2019
Due to an increase in the international enquiries being received to establish residency in Gibraltar for High Net Worth Individuals from the Far East and in particular from Hong Kong, we are pleased to inform our client base that a team of practitioners led by our senior partner Levi J Attias and assisted by our Ms Bun Ee Leong who is fluent in both Mandarin and Cantonese, are able to assist clients from the Far East and Hong Kong and advise them on all matters relating to residency status in Gibraltar for High Net Worth Individuals.
Category 2 Status establishes residence in Gibraltar and thereby, as a matter of Gibraltar law, determines Gibraltar as the country in which you will pay tax on your worldwide income and, in the event of your death, inheritance tax on your estate.
Gibraltar has an attractive tax regime for those wishing to obtain Category 2 status:
- No inheritance tax
- No wealth tax
- No VAT
- No capital gains tax
- No stamp duty (other than in relation to real estate situate in Gibraltar)
- No tax on investment income or savings
Application for Category 2 Status- Requirements
Accommodation – You must have a property (purchased or rented) which is located in an approved “prime area” of Gibraltar exclusively available to you for residential use
Statement of New Worth – You must provide a statement of net worth to the Finance Centre Director to show a minimum of £2 million
References- You must provide 2 references from reputable and recognised institutions/professionals, one of which must be from an international bank
CV- A full CV must be provided
Health Insurance- evidence of adequate private health insurance is required
Passport- A certified copy of your passport
Exclusions – You may not apply if you have been resident in Gibraltar or engaged in any business in Gibraltar within the last 5 years.
Benefits of Category 2 Status
Income Tax- You wi ll pay income tax only on the first £80,000 of your assessable income, subject to a minimum of £22,000 per annum or £1,833.33 for each month or part thereof ofthe first year.
Tax Residence – You will become resident for tax purposes in Gibraltar which has the benefits listed above
Business Interests- You will be entitled to carry on trade, business or employment with no other tax consequences provided such interests are carried on outside Gibraltar. Some business may be carried on via a Gibraltar company, provided such business meets specified criteria.
Certificate- Your Category 2 Certificate will be issued for an indefinite period.
Government administration fee – £1,000 (non-refundable)
Professional fees on application for Cat 2 Status will be quoted on request
Gibraltar provides an excellent framework for restructuring your private wealth/holdings, limits taxes payable on your worldwide income. You may continue to become liable to taxes in other jurisdictions in which you are either resident or deemed to be resident for tax purposes and your tax affairs must therefore be planned professionally.