What is the Gibraltar tax rate?
Short answer
Individuals choose between two income tax systems, with bands from 6% to 28% under the Gross Income Based System or 14% to 39% of taxable income under the Allowance Based System. Companies pay 15% (20% for utilities and dominant firms), and Gibraltar has no capital gains tax or estate duty.
Detailed answer
Gibraltar taxes individuals and companies under the Income Tax Act 2010. The tax year for individuals runs from July to June. Personal income tax Individuals can choose between two systems. Under the Gross Income Based System, tax is charged on assessable income with only a few deductions. For gross income up to £25,000, the first £10,000 is taxed at 6%, the next £7,000 at 20% and the balance at 28%. For gross income above £25,000, the bands are 16% on the first £17,000, 19% on the next £8,000, 25% on the next £15,000, 28% on the next £65,000 and 25% on the balance. Under the Allowance Based System, personal allowances are deducted first, and taxable income is taxed at 14% on the first £4,000, 17% on the next £12,000 and 39% on the balance. Assessable income of £11,450 or less is not taxed at all. These are the bands the Income Tax Office published when rates were cut from the 2024/25 tax year. Special regimes limit the tax of some new residents. Category 2 individuals are taxed only on the first £118,000 of assessable income, with a minimum of £37,000 a year. HEPSS individuals are taxed only on the first £160,000. Corporate tax The standard rate has been 15% since Monday 1 July 2024. Utility companies and companies abusing a dominant market position pay 20%. Companies are taxed on profits accrued in or derived from Gibraltar. Taxes Gibraltar does not have There is no capital gains tax. Estate duty was abolished with effect from Tuesday 1 April 1997, so there is no inheritance tax. Interest is generally not taxed unless it comes from licensed lending or deposit taking, or from company-to-company loans above £100,000. Other taxes Social insurance, stamp duty on property, VAT and the taxes on goods are covered in the related questions below.