Through HEPSS (High Executive Possessing Specialist Skills) executives wishing to re-locate to Gibraltar can also benefit from a capping in tax.
HEPSS - The alternative tax status for those who work in Gibraltar
HEPSS tax residency - (High Executive Possessing Specialist Skills)
The Government introduced Hepss (High Executive Possessing Specialist Skills) to attract executives with specialist skills to Gibraltar.
This tax residency status is aimed at individuals with specialist skills, who come to work and live in Gibraltar. These individuals must earn more than £100,000 per annum.
The rules for this form of residency can be summarised as follows:
- Applicants must possess skills not already present in Gibraltar, their coming to Gibraltar must also help promote and sustain economic activity in Gibraltar.
- Applicants must earn more than £100,000
- Applicants cannot have been resident in Gibraltar for the three years immediately proceeding the application.
- Hepss individuals must live in a Gibraltar qualifying property (similar to those of Category 2 residents).
The advantage of this form of tax residency is that taxation is limited to the first £120,000 of income. This equates to a maximum tax payable of £29,940 (an effective rate of 24.95%). The capping of tax is calculated as follows:
| Income | Tax rate | Tax |
|
| £ | % | £ | |
| 17,000 | 16 | 2,720 | |
| 8,000 | 19 | 1,520 | |
| 15,000 | 25 | 3,750 | |
| 65,000 | 28 | 18,200 | |
| 15,000 | 25 | 3,750 | |
| Capped income | 120,000 | Total tax | 29,940 |
| Effective rate | 24.95% |
If you are a business looking to relocate to Gibraltar and wish to apply for this status for your employess, please do not hesitate to contact us for futher information.