Frequently Asked Questions: Tax & Filings

Clear answers on Gibraltar's corporation tax, territorial system, filing obligations, payroll, and personal tax regimes including Category 2 and HEPSS.

• What is the Gibraltar corporation tax rate?

  Gibraltar's standard corporation tax rate is 15%. This rate applies to all income accruing in or deriving from Gibraltar. There is no separate rate for small companies, capital gains, or qualifying industries — the 15% rate applies uniformly to all taxable profits.

• How does Gibraltar's territorial tax system work?

  Under Gibraltar's territorial basis, only income that accrues in or derives from Gibraltar is subject to Gibraltar corporation tax. Income arising wholly outside Gibraltar — for example, from overseas trading, foreign dividends, or interest on funds held abroad — is not taxable in Gibraltar, regardless of whether the company is incorporated or managed here.

• Is there capital gains tax in Gibraltar?

  No. Gibraltar does not levy capital gains tax. Gains on the disposal of shares, property, or other assets are not subject to tax in Gibraltar, which is a significant advantage for holding structures and investment vehicles.

• Does Gibraltar have VAT?

  Gibraltar has no VAT regime. Transaction Tax applies to relevant goods from 15 July 2026 at 15% in its first year. It is a goods tax, not a general VAT on services. Check whether the supply is in scope and any cross-border obligations.

• When is a company's tax return due in Gibraltar?

  Gibraltar company tax returns must be filed with the Commissioner of Income Tax within nine months of the end of the accounting period. Tax is also payable within nine months of the year-end, though larger companies may be required to make payments on account. Late filing and payment attract interest and penalties.

• When does a Gibraltar company need to file its annual return?

  The annual return must be filed with Gibraltar Companies House within 30 days of the company's return date, which is normally the anniversary of incorporation. It confirms the company's registered office, directors, shareholders and share capital. The fee is £103 if filed on time and rises to between £257.50 and £412 for a late return, depending on how late it is.

• What are the audit thresholds for Gibraltar companies?

  Companies qualify for the small company audit exemption if they meet at least two of three criteria: annual turnover not exceeding £10.2m, balance sheet total not exceeding £5.1m, and no more than 50 employees. Companies that breach these thresholds, and all regulated entities including licensed funds and fiduciaries, must have their accounts audited by an approved Gibraltar auditor.

• What penalties apply for late filing in Gibraltar?

  A late annual return costs £257.50 if it is up to a year late, rising to £309, £360.50 and then £412 after three years, compared with £103 on time. Late accounts attract a Companies House supplementary fee. Late tax returns incur a fixed penalty and interest on unpaid tax at the prescribed rate. A company that files no annual return for three calendar years can be struck off under section 411 of the Companies Act 2014, and regulated firms also face GFSC enforcement for late regulatory filings.

• What are CRS and FATCA, and do Gibraltar companies need to report?

  CRS (Common Reporting Standard) and FATCA (Foreign Account Tax Compliance Act) are international automatic exchange of information frameworks. Gibraltar has adopted both. Gibraltar financial institutions — including certain funds, trusts, and companies holding financial assets for third parties — must register with the Gibraltar Income Tax Office, conduct due diligence on account holders, and submit annual reports. Companies that are not financial institutions are generally not in scope.

• How does payroll tax work in Gibraltar?

  Employers in Gibraltar operate a pay-as-you-earn (PAYE) system, deducting income tax from employees' salaries and remitting it to the Income Tax Office monthly. Employees are taxed on employment income at graduated rates — between 6% and 28% under the allowances-based system, or 16%–25% under the gross income-based system. Employees elect which system to use, and Resilience Group can manage payroll administration as part of a full company service.

• What is social insurance in Gibraltar?

  Gibraltar operates a social insurance scheme under which both employers and employees make mandatory contributions. The employer rate is currently 20% of the employee's gross earnings up to the earnings ceiling, and the employee rate is 10%. Self-employed individuals pay a flat weekly rate. Social insurance contributions fund state benefits including pensions, healthcare, and unemployment support.

• Does Gibraltar have a double taxation agreement with the UK?

  Gibraltar and the UK have a double taxation arrangement (DTA) that covers income from employment, pensions, and certain other income categories. The arrangement is narrower in scope than a full OECD-model treaty and does not cover corporate profits in the same way as a standard treaty. Specific advice should be sought where cross-border tax exposure arises, particularly for UK-connected structures.

• What is the Category 2 individual tax regime?

  Category 2 applies rates to the first £118,000 of taxable income, subject to rule 10 for Gibraltar property and permitted local-activity income. The full-year minimum is £37,000. LN 2026/127 made the application fee £5,000 from 22 June 2026; the Government separately announced a £5 million net-wealth criterion for new applicants. The Finance Centre Director, not the GFSC, issues certificates.

• What is the HEPSS (High Executive Possessing Specialist Skills) regime?

  HEPSS is a personal tax regime for individuals employed in Gibraltar in a qualifying senior or specialist role with a minimum employment income of £160,000 per year. HEPSS individuals pay income tax only on the first £160,000 of their Gibraltar employment income, with no tax on income above that threshold. The regime is designed to attract senior executives to Gibraltar-based businesses and requires prior approval from the Gibraltar government.

• Does Gibraltar have inheritance tax or stamp duty on shares?

  Gibraltar has no inheritance tax, estate duty or wealth tax. Under the Stamp Duties Act 2005, duty can apply to instruments involving Gibraltar real property or certain unquoted investments in entities that hold it, including indirect interests. The property value, instrument and exemptions matter; a property-holding company share sale is not automatically duty-free.

• Are foreign dividends received by a Gibraltar company taxable?

  Dividends received by a Gibraltar holding company from overseas subsidiaries are generally not subject to Gibraltar corporation tax under the territorial principle, provided the income arises wholly outside Gibraltar. There is also no withholding tax on dividends paid out from a Gibraltar company to non-resident shareholders, making Gibraltar efficient as a dividend conduit or holding jurisdiction.

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