CATEGORY 2 GIBRALTAR TAX RESIDENCY

THE ATTRACTION FOR HIGH NET WORTH INDIVIDUALS

Gibraltar tax
& International tax rules

Reviewing the tax residency rules in the source country of tax residence is of vital importance when undertaking any form of international tax planning for individuals.

International Tax

Reviewing the tax residency rules of other countries is of vital importance when undertaking any form of international tax planning for individuals. Below we have prepared a very basic summary of the residency rules of a number of countries just as an illustration as to some of the factors to consider if you were to change residency. This is of particular importance for any individual planning to move to Gibraltar as a Category 2 resident from any of these countries.

The tables are just a brief overview of the tax residency rules, if you need further help or formal tax advice with regards to your country of residency please do not hesitate to contact us.


U.K

Tax Year

5th April to following 6th April

Tax residency rules
  • 183 days or more in a tax year or;
  • Spend an average of 91 days or more over 4 consecutive years
  • Also possible to be treated as U.K. resident if maintain U.K. economic and personal connections

Tax liability of residents

Generally on a worldwide, arising basis

Tax liability of non residents

Generally on a local basis (not for CGT)

Double Tax Treaties

Yes, extensive treaty network

 




Ireland

Tax Year

1st January to 31st December

Tax residency rules
  • 183 days or more in a tax year or;
  • 280 days or more in a tax year and preceeding tax year.

Tax liability of residents

Generally on a worldwide, arising basis

Tax liability of non residents

Generally on a local basis

Double Tax Treaties

Yes, extensive treaty network

 



France

Tax Year

1st January to 31st December

Tax residency rules
  • Home or principal abode in France.
  • Perform employment or professional activities in France (unless anciliary).
  • Centre of economic interests in France.

Tax liability of residents

Generally on a worldwide, arising basis

Tax liability of non residents

Generally on a local basis

Double Tax Treaties

Yes, extensive treaty network



Italy

Tax Year

1st January to 31st December

Tax residency rules
  • Are registered in the Italian civil registry; or
  • Have residence (habitual abode) or domicile (centre of vital interests) in Italy as defined in the Civil Code.
  • If an Italian national and moves to a black listed territory. (Burden of proof on taxpayer to prove new residency).

Tax liability of residents

Generally on a worldwide, arising basis

Tax liability of non residents

Generally on a local basis

Double Tax Treaties

Yes, extensive treaty network

 



Germany

Tax Year

1st January to 31st December

Tax residency rules
  • Habitual abode in Germany (place where they are continously there for six months or more, short breaks ignored) ; or
  • Domicile (home or dwelling maintained for the long term);

Tax liability of residents

Generally on a worldwide, arising basis

Tax liability of non residents

Generally on a local basis

Double Tax Treaties

Yes, extensive treaty network

 


 



Holland

Tax Year

1st January to 31st December

Tax residency rules
  • Permanent home or;
  • Centre of personal interests (spouse and children);
  • Centre of economic interests (i.e. employment in Holland);
  • If a Dutch resident leaves Holland and does not become resident elsewhere and then returns to Holland within a year, then they are treated as tax resident in Holland for the whole period.

Tax liability of residents

Generally on a worldwide, arising basis

Tax liability of non residents

Generally on a local basis

Double Tax Treaties

Yes, extensive treaty network

 


Sweden

Tax Year

1st January to 31st December

Tax residency rules
  • Present in Sweden for 6 consecutive months or;
  • Principal home in Sweden; or
  • Swedish national or Swedish residents (who have been resident in excess of 10 years) are deemed to remain Swedish resident if they move from Sweden for 5 years unless they can prove they no longer have essential connections with Sweden.

Tax liability of residents

Generally on a worldwide, arising basis

Tax liability of non residents

Generally on a local basis

Double Tax Treaties

Yes, extensive treaty network