British Foundations
Located at the gateway to the Mediterranean, Gibraltar combines a British legal and regulatory framework with a Mediterranean lifestyle. Residents benefit from an English-speaking environment, excellent connectivity, a British education system, modern amenities and a safe, cosmopolitan community.
Built for Business
It also offers a practical base for establishing and operating businesses. Its common law framework, experienced professional services community, robust regulatory system and well-developed financial services sector support a wide range of international corporate, fiduciary and investment activities.
Living with Confidence
Alongside its quality of life, Gibraltar offers a favourable tax environment and a stable, internationally recognised jurisdiction, making it an attractive location for individuals, families and businesses looking to live, work and invest. It shares a land border with the EU and its international airport offers regular flights to the UK.
Category 2 is a tax status available to qualifying high-net-worth individuals under the Qualifying Category 2 Individuals Rules 2004.
It allows a successful applicant to limit their Gibraltar personal income tax exposure to a defined band, regardless of worldwide income.
For individuals relocating from higher-tax jurisdictions, this provides a predictable annual tax position within Gibraltar’s wider framework, which does not include capital gains tax, inheritance tax, wealth tax or VAT.
Category 2 is not a residence permit in itself. It is a tax status that operates alongside residence consent, which grants the right to live in Gibraltar.
The core figures, current as published by the Gibraltar Income Tax Office for the 2025/26 year of assessment.
A Category 2 individual is taxed on the first £118,000 of assessable income only. The resulting tax liability typically falls between £37,000 and £42,380, depending on allowances and reliefs.
For individuals with higher levels of worldwide income, this generally results in a known and predictable annual Gibraltar tax position.
There is no formal minimum stay requirement. However, residence patterns and ties to other jurisdictions remain relevant when considering tax residency under international rules.
The core requirements for Category 2 status include:
Net worth of at least £5 million
Demonstrated through bank statements, investment portfolios and supporting documentation.
Approved residential accommodation in Gibraltar
The property must be approved by the Finance Centre Director and available for the applicant’s exclusive use throughout the year.
Residence history
Applicants must not have been resident in Gibraltar during the relevant exclusion period and must satisfy the applicable residency criteria.
No ordinary local employment
Category 2 is not designed for individuals taking up employment in Gibraltar. Limited exceptions may apply in specific circumstances.
Private medical insurance
Applicants are expected to hold qualifying private medical insurance meeting Gibraltar's requirements.
Satisfactory due diligence and standing
Applicants must meet standard regulatory and character requirements, including source-of-wealth and good-standing checks.
A Category 2 application typically takes six to ten weeks once all documentation is in place. The process generally involves:
Eligibility assessment
Review of the applicant’s circumstances and whether Category 2 is appropriate
02
Due diligence and onboarding
Collection of identification, references and source-of-wealth evidence
03
Accommodation
Securing qualifying accommodation and obtaining Finance Centre approval
04
Private medical insurance
Arrangements to meet Gibraltar’s insurance requirements
05
Application submission
Formal submission to the Finance Centre Director
06
Approval and certification
Issuance of the Category 2 certificate
07
Ongoing annual compliance
Annual tax filings and monitoring of qualifying conditions
For individuals taking up senior roles with Gibraltar-based employers, the High Executive Possessing Specialist Skills (HEPSS) regime may be more appropriate.
HEPSS is designed for senior executives and specialists whose roles are considered to add value to the Gibraltar economy.
It allows individuals to work in Gibraltar while benefiting from a capped tax position, subject to meeting the relevant conditions.
The choice between Category 2 and HEPSS depends on the individual’s circumstances, particularly whether local employment is anticipated. Acquarius works with advisors to assess the most appropriate route.
Category 2 is typically considered for:
It is less suitable where the individual intends to take up employment in Gibraltar, or where there is no intention to establish a genuine connection to the jurisdiction.
.avif)
Key Contacts
Oliver Andlaw
Managing Director
Gareth Cross
Chief Operating Officer
Laura Fuhr
Company Manager
Speak to us about Gibraltar Residency
Talk to usHow much tax will I pay under Category 2 status?
A Category 2 individual is taxed on assessable income up to £118,000 only. The annual tax liability sits between a minimum of £37,000 and a maximum of £42,380, depending on personal allowances and reliefs. Income above the cap is not assessed in Gibraltar.
Do I need to spend a minimum number of days in Gibraltar?
There is no minimum stay requirement to retain Cat 2 status, provided the qualifying conditions are met (approved accommodation maintained, etc.). However, genuine residence patterns matter for tie-breaker tests under tax treaties, and we advise treating Gibraltar as a real principal residence.
What net worth do I need?
A minimum net worth of £5 million, evidenced by bank statements, investment portfolios, and supporting documentation.
Can I work in Gibraltar with Cat 2 status?
Not in ordinary local employment. Limited exceptions apply for directorships in Gibraltar companies and certain investment activities, but Cat 2 is fundamentally not a working residency. Senior executives taking up Gibraltar employment should consider HEPSS instead.
Are my family covered under Cat 2?
Yes. The applicant’s spouse and dependent children are typically covered under the same Cat 2 certificate where they live with the applicant in the qualifying property, simplifying the family tax position.
How long does the application take?
Six to ten weeks from the point all documentation is in order, depending on accommodation approval and Finance Centre review timelines.
Is Cat 2 the same as a residence permit?
No. Cat 2 is a tax status, granted by the Finance Centre. The residence consent — granting the right to live in Gibraltar — is a separate document, typically issued in parallel.
Acquarius Trust
Company Limited
+(350) 200 50418
Icom House, Suite 3,
2nd Floor 1/5 Irish Town,
PO Box 883
Gibraltar, GX11 1AA
Reg. N 64486
GFSC N 5136
.svg)
