Category 2 Information

Gibraltar affords individuals whose net worth exceeds £2,000,000 a special status known as the Category 2 status. For these purposes, the status limits the individual’s tax liability to their first £105,000 of assessable income.

Assessable income includes all income deemed taxable under Gibraltar Income Tax Act 2010 but excludes income accrued from abroad, or income received from a trust.

The Category 2 status is popular amongst retirees but is also available to individuals based in Gibraltar who are shareholders of companies whose activities are carried out outside Gibraltar. Such individuals may also be directors of such companies provided this is permitted under the conditions of their Category 2 certificate.

"the status limits the individual’s tax liability to their first £105,000 of assessable income"

An individual who within the period of five years preceding their application for a Category 2 certificate, has been in Gibraltar for a period greater than 183 days in anyone year or 90 days in any three of those five years, or has been in trade, business or employment in Gibraltar prior to their proposed application is not eligible for Category 2 status.


Under the provisions of the applicable law, an individual who benefits from Category 2 status will be subject to a maximum tax liability of around £37,310 per annum and a minimum of £32,000 per annum.

For those individuals who wish to obtain Category 2 status, an application for a Category 2 certificate is made to the Finance Centre accompanied by a non-refundable deposit of £1,000. In order for the application to be successful, the individual must have residential accommodation (rented or purchased) in Gibraltar available to them for their own exclusive use, and approved by the Finance Centre.

The Finance Centre Director will issue a certificate if the individual meets the criteria set out above and he is satisfied that the applicant is of substantial and sound financial standing, of good character and that the issue of the certificate to the individual will not be harmful to Gibraltar’s reputation as a well regulated Finance Centre.

The above information has been provided to us by courtesy of Legacy Consulting Limited The contents in this newsletter are for information purposes only and do not constitute advice. Legacy Consulting Limited is a law firm registered in Gibraltar with its business address situate at 6.23 World Trade Center, 6 Bayside Road, Gibraltar.

Legacy Consulting

For further information please contact:

Tel: (00350) 20051300