Tax system in Gibraltar
Gibraltar taxes income accruing in or derived from Gibraltar. Individuals who are ordinarily resident can also be taxed on certain foreign employment, self-employment, dividend, pension and office income, while the detailed source and receipt rules still matter.
Individuals can be assessed under the Allowances Based System or the Gross Income Based System. The current published GIBS schedule reaches 25% on the balance above the higher bands, while ABS applies 14%, 17% and 39% rates after allowances.
Gibraltar has no general capital gains tax, annual wealth tax, inheritance tax, gift tax or VAT. The practical tax burden instead includes corporation tax, PAYE, social insurance, property stamp duty, customs or transaction tax, excise duties and sector-specific gaming charges.
Tax rates at a glance
- Income tax
- Up to 25% GIBS / 39% ABSProgressive
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- 0%
- Corporate tax
- 15% (20% specified sectors)
- Dividend tax
- Resident individuals may be taxable
- Transaction tax on goods
- 15% in year one
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersHigh earnersInvestorsFinancial-services businessesGaming businesses
Watch out for
- Gibraltar is low-tax, not tax-free. Personal income tax and social insurance apply to ordinary employment and self-employment, and resident individuals need to check how foreign income is treated.
- From 15 July 2026, the Gibraltar–EU arrangement introduces a transaction tax on goods, starting at 15% in year one and moving toward 17%. It applies to goods rather than services and is not a conventional VAT charged at retail checkout.
- The Category 2 high-net-worth regime remains subject to eligibility, accommodation and minimum-tax conditions. Gibraltar announced intended 2026 changes to raise the application fee and the minimum net-wealth requirement for new applicants, so new applications should be checked against the rules in force.
Frequently asked questions
Is Gibraltar a tax-free country?
No. Gibraltar has no general capital gains, wealth, inheritance, gift or VAT regime, but it taxes personal income, company profits, payroll through social insurance, property transactions and imported goods.
What is the income tax rate in Gibraltar?
Individuals can use the Gross Income Based System or the Allowances Based System. The current published bands reach 25% under GIBS, while the nominal top ABS rate is 39% after allowances.
Does Gibraltar have corporate tax?
Yes. The standard corporation tax rate is 15% on taxable profits accrued in or derived from Gibraltar, with a 20% rate for specified utilities, fuel suppliers, dominant-market companies and certain telecommunications income.
Does Gibraltar have VAT?
Gibraltar does not operate a general VAT system. From July 2026, a separate transaction tax applies to goods under the new customs arrangement, with reduced and zero rates for listed goods.