How do UK tax reforms affect relocation decisions to Gibraltar?
Short answer
The UK abolished the remittance basis for non-domiciled individuals from 6 April 2025, replacing it with a residence-based regime and moving inheritance tax to a residence-based test, which has led some internationally mobile people to consider alternatives such as Gibraltar. A move helps only if you cease to be UK resident under UK rules and can show genuine tax residence in Gibraltar.
Detailed answer
The UK changes From 6 April 2025 the UK ended the non-dom regime and the remittance basis. Long-term UK residents are taxed on worldwide income and gains as they arise. New arrivals can opt into a four-year exemption for foreign income and gains, and inheritance tax moved to a residence-based system. Why Gibraltar is considered Gibraltar shares English common law and the English language, has no capital gains, inheritance or wealth taxes, and offers capped regimes such as Category 2 and HEPSS. What you must show Leaving the UK for tax purposes is decided under the UK's Statutory Residence Test. Where both countries could treat you as resident, the UK-Gibraltar double taxation agreement signed on 1 October 2019 provides tie-breakers. On the Gibraltar side, you are tax resident if present for at least 183 days in a tax year (1 July to 30 June) or more than 300 days over three consecutive tax years. The Income Tax Office issues residence certificates for £28.50, assessing the totality of evidence and giving primary weight to a Gibraltar identity card or permanent residence certificate, a health card, utility bills in your name, card spending in Gibraltar and employer confirmation. Since 14 July 2026 you also need a residence permit to live in Gibraltar.