Europe
Malta IP Box Regime
95% deduction yields effective 1.75% rate when nexus ratio is 1
Indefinite · Foreign income partly exempt
Europe
Gibraltar Category 2 Tax Status
Gibraltar's Category 2 status caps annual personal income tax to a narrow band, while preserving a no-CGT, no-wealth-tax environment.
Regime overview
- Status
- Active
- Type
- Special status
- Established
- 2010
- Duration
- Indefinite
- Highlight
- Capped tax between GBP 37K-45K per year for HNWIs
Tax situation
Default Rates
- Eligibility
- Any resident
- Duration
- Indefinite
- Income Tax
- 6-39%
- Foreign Income
- Exempt
- Capital Gains
- None
- Dividends
- Up to 39%
- Wealth Tax
- None
- Inheritance Tax
- None
Category 2 Tax Status
- Eligibility
- Not resident prior 5 years
- Duration
- Indefinite
- Income Tax
- GIP 37K-GIP 45K/year
- Foreign Income
- Partially exempt
- Capital Gains
- None
- Dividends
- Generally exempt
- Wealth Tax
- None
- Inheritance Tax
- None
| Tax Type | Default | Category 2 Tax Status |
|---|---|---|
| Eligibility | Any resident | Not resident prior 5 years |
| Duration | Indefinite | Indefinite |
| Income Tax | 6-39% | GIP 37K-GIP 45K/year |
| Foreign Income | Exempt | Partially exempt |
| Capital Gains | None | None |
| Dividends | Up to 39% | Generally exempt |
| Wealth Tax | None | None |
| Inheritance Tax | None | None |
Key benefits
Predictable annual personal income tax within a capped band
No capital gains, wealth, or inheritance tax
Territorial-style rules often keep foreign income outside Gibraltar tax
Requirements and considerations
Must not have been resident in prior 5 years
Investment required: Net worth >= GIP 2M, approved accommodation, advance tax may apply
Program details
Category 2 is Gibraltar's flagship HNWI tax status, designed to deliver a predictable annual personal income tax outcome for qualifying residents.
In practical terms, Category 2 limits the income tax calculation to a capped assessable income basis (commonly cited at GIP 118K ), producing an annual tax typically between GIP 37K and GIP 45K .
Outside the Category 2 calculation, Gibraltar's broader tax environment is attractive to internationally mobile individuals: capital gains tax is generally None, and there is no inheritance tax or wealth tax. Gibraltar taxation is driven by source concepts (income accrued in or derived from Gibraltar), so treatment of foreign income depends on where activities occur and how income is received.
To access Category 2, applicants must typically show significant net worth (commonly at least GIP 2.0M ), secure approved accommodation in Gibraltar, and satisfy non-residency history and due diligence checks. Ongoing access depends on maintaining conditions and staying compliant with Gibraltar filing and payment requirements.
Interested in Category 2 Tax Status?
Our tax advisors can help you evaluate eligibility requirements and optimize your tax position under this regime.
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Default personal income tax rates (ABS and GIBS) and general tax rules
Income Tax Office, Government of Gibraltar·Last checked: 13/01/26
Category 2 overview and tax cap band
Gibraltar Finance - Tax Residence (Category 2 individuals)·Last checked: 13/01/26
Schengen status and treaty process
European Commission - EU and UK reach political agreement on Gibraltar·Last checked: 11/06/25
Expert guidance
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