Can Gibraltar's Cat 2 or HEPSS residency status be used by company executives?
Short answer
HEPSS is the status designed for executives: it caps taxable income at the first £160,000 under the Gross Income Based System, giving tax of £39,940 on that amount. Category 2 is aimed at high net worth individuals with independent wealth and is not designed for people taking up employment in Gibraltar.
Detailed answer
HEPSS High Executive Possessing Specialist Skills status is for senior executives whose skills are not available in Gibraltar and are needed to promote economic activity of particular value to Gibraltar. A HEPSS individual is taxed only on the first £160,000 of income under the Gross Income Based System, which equates to tax of £39,940. The executive must not have been resident in Gibraltar in the previous three years (or must previously have registered as a Category 3 individual) and must have approved residential accommodation available for their exclusive use. Category 2 Category 2 caps assessable income at £118,000 and annual tax at between £37,000 and £42,380. New applicants need net assets of at least £5 million following changes announced on 18 June 2026. Residence and tax residence A tax status does not by itself give the right to live in Gibraltar. Since 14 July 2026 an executive moving for work also needs a residence permit under the Residency Regulations 2026. Tax residence is decided separately by the Income Tax Office, which applies the 183-day and 300-day tests and weighs evidence such as a Gibraltar identity card, health card, utility bills in the executive's name, card spending in Gibraltar and employer confirmation of presence.