Requirements for Residency in Gibraltar: 2025 Guide for Entrepreneurs, Executives & Pensioners

Every year, more people are drawn to Gibraltar, a unique British Overseas Territory with a booming economy, 300 days of sunshine, and a strategic location between Europe and Africa. But becoming a resident in Gibraltar isn’t as simple as buying property or having a British passport. This is where many entrepreneurs and business owners find themselves lost at times. 

To gain residency in Gibraltar, you must either:

• Obtain an Employment Certificate Stamped by the Department of Employment.
• Own a Gibraltar business that services the local market or has significant substance in Gibraltar.
• Qualify under one of Gibraltar’s special residency regimes such as HEPSS or CAT2.
• Be a Self sufficient UK pensioner and transfer your pension and medical entitlement to Gibraltar.

For those looking to establish a business that provides services within the local market, TAG Consultancy offers end-to-end assistance from setting up your Gibraltar company structure to navigating the related regulatory and licensing requirements. This blog provides an overview of what’s involved in establishing a presence in Gibraltar and offers insights to help you approach the process knowledgeably and with confidence. Find out about our company set-up services here. 

Why Gibraltar Appeals to Residents

• Gibraltar’s New potential relationship with the Schengen area: Residency & Mobility Impacts

If the pending treaty is ratified, Gibraltar residence card holders will gain Schengen transit rights. This would result in smoother travel across Europe without routine border checks and no need for ETIAS (European Travel Information and Authorisation System). Your new EU-compliant residence card would serve as a gateway to the entire Schengen area, making movement in and out of Europe effortless.

For those already considering a move, this change would only enhance the benefits of Gibraltar residency. It would likely drive higher demand for property and residency while strengthening Gibraltar’s position as a bridge between the UK and EU. Combined with the territory’s favorable tax regime, robust regulatory system, and thriving financial and fintech sectors, Gibraltar would become an even more compelling choice for individuals and businesses looking for a secure and connected base.

• Strategic location and a Mild Mediterranean climate (16°C in winter to 30°C+ in summer)

At the southern tip of the Iberian Peninsula, Gibraltar stands at the gateway to the Mediterranean, connecting Europe, Africa, and the wider world. Its position at the western entrance to this vital trade route has made it a thriving hub for international business, finance, and travel. Beyond its strategic location, Gibraltar offers a lifestyle that’s hard to match: over 300 days of sunshine each year, a mild Mediterranean climate ranging from 16°C in winter to 30°C+ in summer, and a safe, relaxed environment. For families, entrepreneurs, and retirees, Gibraltar delivers the perfect blend of opportunity, security, and quality of life.

• Strong financial, fintech, gaming, and maritime sectors

The Rock is home to thriving sectors including financial services, fintech, online gaming, maritime, and tourism. Gibraltar’s financial system is tightly regulated by the Gibraltar Financial Services Commission (GFSC), which enforces high standards of regulatory requirements, this in turn increases market confidence, and investor safeguards. Gibraltar’s pioneering Distributed Ledger Technology (DLT) framework, introduced in 2018, has positioned Gibraltar as one of the world’s leading crypto and fintech hubs, attracting major global exchanges and blockchain innovators. Combined with strong AML/CFT rules, permanent market access to the UK, and a modern legal framework modeled on English law, Gibraltar offers both stability and opportunity. This diversity not only creates fertile ground for business growth but also ensures a resilient, internationally respected financial center.

• Access to UK markets and professional services infrastructure

With passporting rights into the UK and post treaty, direct access to European markets, Gibraltar businesses benefit from access to both British and international markets. Its modern infrastructure in Regulation, banking, and Financial Services makes it an ideal jurisdiction for ambitious entrepreneurs.

• Common-law legal system based on England & Wales

Gibraltar’s legal framework mirrors that of England & Wales, giving investors and businesses the security of a well-established, predictable, and transparent Legal justice system.

• No capital gains tax, inheritance tax, wealth tax, VAT, or sales tax

Gibraltar imposes no capital gains tax, inheritance tax, wealth tax, VAT, or sales tax. (transaction Tax to follow post Treaty) Combined with capped tax regimes like Category 2 and HEPSS, it offers one of the most favourable tax landscapes in Europe for individuals and businesses alike.

Residency Routes in Gibraltar

1. Employment in Gibraltar

If you are employed by a Gibraltar-registered company and living in Gibraltar, you may begin the process of applying for a residency card. 

2. Owning or Running a Business in Gibraltar

Entrepreneurs can gain residency by setting up and operating a Gibraltar company or establish themselves as a Self employed individual;

But it’s important to understand:

As a general rule, if your business is not servicing the local market you may not be provided a mandatory ETB registration certificate. Without this certificate the company will not be able to have any registered employees. This will equate to no stamped employment contract that you will require for the residency application. 

What Does Not Qualify
❌ Buying property alone.
❌ Working remotely from Gibraltar servicing clients externally. 

Bottom line: If you are applying via employment, you need a Contract stamped by the department of employment. TAG Consultancy helps ensure your company is structured and compliant, while also preparing and submitting the necessary documentation to support a residency application, with final decisions always made by Gibraltar’s Department of Employment (ETB).

3. CAT2 Residency (for High Net Worth Individuals)

• For individuals with net assets of at least £2 million.
• Tax liability capped between £37,000–£42,000 annually
• Requires approved property in Gibraltar and private medical insurance.
• Designed for High Net Worth seeking a stable, low-tax jurisdiction.

Important note: From 1 July 2022, Category 2 applicants must pay a deposit equal to the maximum Cat 2 tax for the year (currently £42,380) plus an application fee (noted as £1,197 in 2024/25). Refundable on surrender, net of any final balance.

4. HEPSS (High Executive Possessing Specialist Skills)

• For executives earning £160,000+ per year.
• Must bring skills not readily available in Gibraltar.
• Requires approved Gibraltar property.
• Tax capped at ~£39,940 annually.

5. Self-Sufficient UK Pensioners

• Must be in receipt of a UK State Pension.
• Must transfer the UK state Pension to Gibraltar. 
• Must transfer medical rights to Gibraltar for healthcare.
• Must show financial self-sufficiency and own/rent property.

What are the Taxation Benefits for Residents

• No capital gains, inheritance, wealth, gift, or sales taxes.
• No VAT in Gibraltar.
• Income taxon average is around 25% 
• Category 2 (CAT2) and HEPSS regimes cap tax liability for qualifying individuals.
• Corporation tax is 15% 

Final Thoughts

Establishing the correct company structure and obtaining your registration and licensing requirements can be a complex and often confusing undertaking. Many individuals are uncertain where to begin, and navigating the regulatory requirements without professional support can lead to unnecessary complications, delays or fines further down the road. TAG Consultancy’s team have extensive expertise in this area, ensuring that your incorporation and registration process is managed seamlessly. By entrusting us with these formalities, you benefit from a structured, compliant, and stress-free application process.

While we can take care of your full company setup and relevant applications for residency with ease, eligibility and approval decisions are made exclusively by the relevant Gibraltar authorities.

Contact TAG Consultancy today for a free consultation and get the support you need.