Attorney, Family Office

Concept

Gibraltar requires the presence of local residents to manage financial companies as directors, compliance officers, and MLROs — positions necessary for the establishment and operation of funds and other financial institutions.

The regulator, GFSC, mandates that key roles be held by qualified Gibraltar residents with proven experience. Therefore, local residency is suitable for shareholders and senior managers who intend to manage a Gibraltar business themselves without using local nominees.

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private.law uses Gibraltar residency for local compliance, and this article explores effective solutions for that specific objective.

Gibraltar offers two primary residency options for high-net-worth individuals and highly skilled professionals — Category 2 (Cat 2) and High Executive Possessing Specialist Skills (HEPSS). These statuses allow legal residence in Gibraltar and access to its tax advantages, subject to certain requirements:

Category 2 (Cat 2) – For high-net-worth individuals with capital from £2 million – Tax applies only on the first £118,000 of income – Annual tax burden: £37,000–£42,380 – No minimum physical presence required

HEPSS – For highly skilled professionals – Tax applies only on the first £160,000 of employment income – Annual tax burden: £39,940 – Minimum salary: £160,000 per year

Taxation

Residents under the Category 2 and HEPSS programmes benefit from Gibraltar’s significant tax advantages:

Territorial taxation — only income arising in or remitted to Gibraltar is taxed
For Cat 2: tax applies only on the first £118,000 of income, regardless of actual total income
For HEPSS: tax applies only on the first £160,000 of employment income
No capital gains tax
No inheritance tax, wealth tax, or gift tax

Procedure for Obtaining Status in Gibraltar

Requirements

To qualify for either status, the following criteria must be met:

Category 2 – Proven net worth over £2 million – No Gibraltar residency within the previous 5 years – Approved accommodation in Gibraltar for personal use

HEPSS – Possession of specialised skills required by the Gibraltar economy – Senior executive role with salary from £160,000 – No Gibraltar residency in the previous 3 years

Application Process

Applications are submitted to the Gibraltar Finance Centre. A non-refundable fee of £1,197 applies to both programmes. In addition, Cat 2 applicants must pay the maximum tax amount (£42,380), which is refundable in case of rejection or withdrawal. Processing time is 1–3 weeks.

Physical Visit and Accommodation

Both programmes require accommodation in Gibraltar, either rented or purchased. Accommodation details must be submitted within 2 months after the certificate is issued. Upon approval, a residency certificate and Gibraltar ID card are issued.

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Both programmes require valid medical insurance and favourable references, including a bank reference. The total process takes approximately 4 to 8 weeks, provided all documents are ready.

Family Members

Spouse – Legally registered marriage – Civil partnerships with proof of cohabitation (minimum 12 months)	Children under 18 – Automatically included without additional requirements – Includes biological and stepchildren (with guardianship)
Applicant’s parents – Aged 65 and over – Documented financial dependency – Medical need for cohabitation (in some cases)	Children aged 18–25 – Proof of financial dependency – Full-time university enrolment – Unmarried

Required Documents

All documents must be translated into English and legalised (apostille accepted).

Document	Requirements
Passport	Valid for at least 12 months. Full copy of all pages.
Photographs	Colour, passport-size (45×35 mm), 6 pieces.
Marriage certificate	For spouses.
Birth certificates	For all dependent children.
Police clearance certificate	From the country of citizenship and all countries of residence within the last 5 years. Issued no more than 3 months ago.
Proof of financial standing	For Cat 2: evidence of net worth over £2 million.
For HEPSS: employment contract with salary from £160,000.
CV/Resume	Professional biography indicating work experience.
References	Bank reference and an additional character reference from a person who has known the applicant for over 2 years.
Tenancy or property ownership agreement	Property in Gibraltar with a minimum area of 160 m².
Medical insurance	Full coverage for the applicant and all family members with a minimum amount of £100,000 per person.
Additional for HEPSS	HEPSS form and confirmation from the Employment and Training Board.