How does Gibraltar’s Category 2 tax status affect cost-of-living calculations for executives?
Short answer
Category 2 residency reduces net tax burden and increases disposable income, amplifying Gibraltar’s efficiency advantage.
Detailed answer
While housing and services may be comparable in headline cost to London, Cat 2 caps tax liability at roughly £37000 on assessable income (subject to rules), meaning net take-home income is substantially higher. This transforms cost comparisons from pure expenditure into post-tax lifestyle value, making Gibraltar particularly compelling for HNWIs relocating from the UK.