Cat 2 Gibraltar Property

HNWI's & Category 2 Status

To qualify for this tax saving status which is aimed at high net worth individuals you must have net assets to a minimum net value of £2 million.  This represents a huge saving in taxes as once you have qualified for this status you will only be liable to pay tax on the first £70 000 of earnings per annum.  This means that the maximum total amount of tax you will pay is £25 880 This tax amount is achieved as follows:-

The Cat 2 resident must either own or rent a property in Gibraltar which is approved by the Gibraltar Finance Centre.  The conditions placed on application for this status are as follows:-

• The property must be used exclusively by the Cat 2 individual and his direct family.
• The individual applying cannot have been a resident in Gibraltar during the five years prior to the year of assessment.
• The Cat 2 individual is not authorised to engage in a trade business or employment in Gibraltar.
• A Category 2 status certificate is granted on an indefinite basis but needs to be endorsed every three years.
• The Cat 2 individual must have private medical cover in Gibraltar.
• There is no minimum stay in Gibraltar but the individual who has qualified may as long as the above conditions are fulfilled retain his Gibraltar residency without the need to spend any time in Gibraltar.