HEPSS tax residency - (High Executive Possessing Specialist Skills) The Government introduced HEPSS (High Executive Possessing Specialist Skills) to attract executives with specialist skills to Gibraltar deemed to be vital for the business to prosper. This tax residency status is aimed at individuals with specialist skills, who come to work and live in Gibraltar. These individuals must earn more than £120,000 per annum. The individual must possess specialist skills or have experience that are not generally available in Gibraltar and which will promote and sustain activity that is considered of economic value to Gibraltar. The rules for this form of residency can be summarised as follows:
Applicants must possess skills not already present in Gibraltar, their coming to Gibraltar must also help promote and sustain economic activity in Gibraltar. Applicants must earn more than £120,000. Applicants cannot have been resident in Gibraltar for the three years immediately preceding the application. HEPSS individuals must live in a Gibraltar qualifying property (similar to those of Category 2 residents). A non refundable application fee of £1,000 is payable at the time of submission of the applicat ion. Successful applicants will receive a certificate confirming the status but importantly it is not transferable. Taxation is charged following the Gross Income Based System (GIBS) only. The advantage of this form of tax residency is that taxation is lim ited to the first £120,000 of assessable income. This equates to a maximum tax payable of £29,940 (an effective rate of 24.95%). The capping of tax is calculated as follows:
Capped income
Income
Tax rate
Tax
£
%
£
17,000
16
2,720
8,000
19
1,520
15,000
25
3,750
65,000
28
18,200
15,000
25
3,750
120,000
Total tax
29,940
Within the European Union Single Market HM Government of Gibraltar • Suite 761, 6 t +350 20050011 f +350 20051818
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Floor, Europort • Gibraltar GX11 1AA
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It is firmly recommended that those individuals considering making an application take appropriate professional advice before doing so. Applications should be made to: Gibraltar Finance Director, Gibraltar Finance, Suite 761, Europort, Tel 20050011, e -mail info@financecentre.gov.gi General Information 1. Gibraltar is a British Overseas Territory and a self-governing and self-financing parliamentary democracy within the European Union (EU). 2. Gibraltar is physically part of Europe; it is not an island and is located at the southernmost tip of Spain, allowing easy access to Spain, Portugal and beyond. 3. With a state-of-the-art international airport Gibraltar offers flights to and from a number of UK destinations on a daily basis. 4. It is a Common Law jurisdiction and enjoys close ties with the United Kingdom. 5. Its EU membership provides passporting rights in banking, investment services, insurance, insurance mediation and reinsurance across all EU and European Economic Area (EEA) countries and access to a market of in excess of 500m people. 6. No VAT, no capital gains tax, no inheritance tax, no wealth taxes. Its currency is the Gibraltar pound which is at par with UK sterling; Gibraltar is not a Eurozone country. Lifestyle 1. It offers a vibrant property market with an excellent choice of high quality housing. Gibraltar provides diverse marina facilities capable of berthing large luxury yachts. 2. It is a Mediterranean territory and as such enjoys excellent weather and lifestyle. 3. The economy of Gibraltar is forecast to grow to £1.8bn by 2015 and the Government has maintained a budget surplus throughout the recent economic slowdown that has affected much of the developed world. GDP continues to grow in excess of 10%. 4. Gibraltar operates a low tax regime including a tax residency scheme for individuals with net assets in excess of £2m (conditions apply) capping the maximum personal income tax at£29,880. Taxation
1. Assessment and collection of tax is administered by the Commissioner of Income Tax; the tax year runs from 1st July to the following 30th June. 2. Taxable profits are charged with corporation tax of 10% since January 1, 2011. Gibraltar Finance always strongly recommends that each individual take appropriate independent professional advice. Should you have any questions on the information contained in this document please contact the author Paul Astengo, Senior Executive on paul.astengo@financecentre.gov.gi. 2015 www.gibraltarfinance.gi
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