How income tax works in Gibraltar
Gibraltar uses a source-based income-tax framework. Income accruing in or derived from Gibraltar is generally within scope, and an ordinarily resident individual can also be taxed on certain foreign employment, self-employment, dividend, pension and office income. Foreign income already taxed elsewhere may qualify for unilateral relief, subject to the statutory limits.
The tax year runs from 1 July to 30 June. Individuals choose between GIBS, which taxes gross assessable income at lower rates with limited deductions, and ABS, which taxes income after a wider allowance and deduction structure. The system producing the lower liability generally matters more than the headline top rate.
For GIBS, income up to £25,000 is taxed at 6% on the first £10,000, 20% on the next £7,000 and 28% on the balance. Above £25,000, the published bands are 16%, 19%, 25%, 28% and then 25% on the balance. ABS applies 14% to the first £4,000 of taxable income, 17% to the next £12,000 and 39% thereafter.
Income tax brackets in Gibraltar
| Bracket | Rate | Notes |
|---|---|---|
| GIBS: first £10,000 | 6% | For gross assessable income not exceeding £25,000 |
| GIBS: next £7,000 | 20% | For gross assessable income not exceeding £25,000 |
| GIBS: balance up to £25,000 | 28% | For gross assessable income not exceeding £25,000 |
| GIBS: first £17,000 above £25,000 | 16% | Higher-income schedule |
| GIBS: next £8,000 | 19% | Higher-income schedule |
| GIBS: next £15,000 | 25% | Higher-income schedule |
| GIBS: next £65,000 | 28% | Higher-income schedule |
| GIBS: balance above £105,000 | 25% | Higher-income schedule |
| ABS: first £4,000 of taxable income | 14% | Assessable income after allowances and deductions |
| ABS: next £12,000 of taxable income | 17% | Assessable income after allowances and deductions |
| ABS: balance | 39% | Nominal rate before considering the allowance structure |
Tax rates at a glance
- GIBS income tax
- 6% to 28% up to £25,000Progressive
- GIBS higher-income schedule
- 16% to 25%
- ABS income tax
- 14% / 17% / 39%
- Low-income threshold
- £11,450
- Employee social insurance
- 10% of gross earnings
- Employer social insurance
- 18% of gross earnings
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesSelf-employed professionalsHigh earnersExpat executivesFounders
Watch out for
- A personal tax return is generally due by 30 November, while employers deduct PAYE and remit income tax and social insurance monthly. Self-employed people also need to plan for payments on account.
- The published allowance schedule includes a £3,455 personal allowance, a £4,343 minimum allowance and a no-tax threshold for annual assessable income up to £11,450. Allowances and tax tables can change by year of assessment.
- Social insurance is separate from income tax. For the current contribution class, employees pay 10% of gross earnings and employers 18%, subject to statutory minimums and maximums; self-employed contributors use a separate 20% schedule.
- Ordinary residence is not the same as simply holding a residence document. Gibraltar’s published test includes 183 days in a year or more than 300 days across three consecutive years, with special regimes subject to additional conditions.
Frequently asked questions
How is salary taxed in Gibraltar?
Salary is taxed through PAYE under either GIBS or ABS, with the applicable tax code reflecting the chosen system and allowances. Employee social insurance is deducted separately.
Do expats pay income tax in Gibraltar?
Usually, if they work in Gibraltar or are ordinarily resident under the Gibraltar rules. The source of the income, the number of days worked and any special status can change the result.
Is Gibraltar income tax capped?
The ordinary GIBS schedule reaches 25% on the balance above the higher bands, but this is not a blanket cap for every taxpayer. Category 2 and specialist-executive regimes have separate eligibility and assessment rules.