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Gibraltar - Overview and introduction 

Taxation of international executives

From 1 January 2011 all individuals are taxed in accordance with the Income Tax Act 2010 (ITA) and this publication summarizes the tax position in Gibraltar under this legislation.


Under the ITA, any person is liable to income tax in Gibraltar on sources of income as identified in Schedule 1 of the ITA 2010 accruing in or derived from Gibraltar, which includes:


  • rental income from Gibraltar property
  • employment income (including benefits-in-kind)
  • self-employment income
  • business/trading income
  • pension income
  • dividends from unquoted companies (i.e. not paid by a company the shares of which are listed on a recognized stock exchange)
  • certain fund income (i.e. not marketed to the general public, including shares in or securities of an open ended investment company).

An ordinarily resident individual is also liable to income tax on the following worldwide income: employment and self employment income, unquoted dividends, funds income, pension income.


Income, wherever received, from any employment exercised in Gibraltar, is treated as having been derived in Gibraltar.


Certain individuals may be able to claim special concessions in Gibraltar.


  • Qualifying (Category 2) Individuals pay income tax on the first GBP 80,000 of assessable income only. The amount of tax due and payable in any year of assessment is not less than GBP 22,000, but subject to a maximum of GBP 29,880. In order to qualify, the individual must meet certain conditions related to net wealth, residency, accommodation, and business activities.
  • High Executives Possessing Specialist Skills (HEPSS) pay tax on the first GBP 120,000 of earned income only. They are taxed under the Gross Income Based System (see below) and must occupy a high executive or senior management position, have skills that are not available in Gibraltar; and meet certain conditions to do with residency and accommodation.

The official currency of Gibraltar is Sterling (GBP).


For information on practical matters that employers and employees should consider with respect to an international assignment, please refer to the companion booklet entitled Planning Your International Transfer, if available.


For the purposes of this publication, the host country refers to the country to which the employee is assigned. The home country refers to the country where the assignee lives when he/she is not on assignment.


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© 2013 KPMG Limited, a Gibraltar Limited Liability Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

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Taxation of international executives