Gibraltar

Gibraltar is a British Overseas Territory strategically located on the southern tip of the Iberian Peninsula. It lies at the entrance of the Mediterranean Sea, bordered to the north by Spain. The territory covers an area of just 6.7 square kilometers (2.6 square miles), dominated by the famous Rock of Gibraltar, a limestone promontory. Despite its small size, Gibraltar’s strategic location has historically made it a key naval base and a point of geopolitical significance.

Climate:

Gibraltar enjoys a Mediterranean climate characterized by mild, wet winters and hot, dry summers. Average temperatures range from 10-15°C (50-59°F) in winter to 25-30°C (77-86°F) in summer. Rainfall is concentrated in the winter months, while summers are typically dry and sunny, making it an attractive destination for tourists seeking warm weather.

Language:

The official language of Gibraltar is English, used in government, education, and the media. However, the local population is bilingual, with many Gibraltarians also speaking Spanish due to the territory’s proximity to Spain. Additionally, Llanito, a unique mix of English and Spanish with influences from other languages, is commonly spoken among locals.

Popular Attractions:

The Rock of Gibraltar: The iconic Rock offers stunning views of the surrounding area and is home to the famous Barbary macaques, the only wild monkey population in Europe.

Michael’s Cave: A network of limestone caves within the Rock, used historically as a hospital and now a popular tourist attraction and concert venue.

The Great Siege Tunnels: A series of tunnels carved out during the Great Siege of Gibraltar in the late 18th century.

Europa Point: The southernmost point of Gibraltar, offering views across the Strait of Gibraltar to North Africa.

The Gibraltar Nature Reserve: Covers much of the Rock, providing opportunities for hiking, bird watching, and enjoying the diverse flora and forna.

Moorish Castle: A medieval fortification that offers a glimpse into Gibraltar’s Islamic past.

Main Street: The primary shopping district, known for its duty-free shops, restaurants, and historical architecture.

Gibraltar’s Economy: 

Gibraltar’s economy is diverse one, with key industries including:

• Financial Services: The territory is a major international financial center, known for its favorable tax regime and robust regulatory framework.
• Online Gambling: A significant contributor to the economy, with many major gaming operators headquartered in Gibraltar.
• Tourism: Draws millions of visitors annually, attracted by its historical sites, natural beauty, and duty-free shopping.
• Shipping and Maritime Services: Its strategic location makes Gibraltar a crucial port for bunkering and maritime trade.
• Telecommunications: Advanced infrastructure supports the financial services and online gaming industries.

Location Location Location…..

There are 7 districts in Gibraltar to live in, each quite different.   If you are thinking of moving to Gibraltar, consider these:

South District – Considered the sunniest and away from the Levant Cloud that forms over the Rock of Gibraltar when there is an easterly, the South District is only a short 1 km commute to town and considered the suburbs of Gibraltar reaching out towards Europa point and the views over to Africa and the Straits of Gibraltar.

Eastside – home of our largest beaches as well as the beautiful Catalan bay with its multi-colored buildings nestled around a scenic sandy bay. This side of the rock witnesses the rising sun and enjoys cooler evenings as the sun disappears behind the rock in late afternoon.

Upper Town – Spectacular views across the bay and nestled around the Moorish Castle area that towers above the Town.  Older, more heritage biased these properties tend to have high ceilings, quirky balustrades and inner courtyards for shade and repose.

Westside – you will find Gibraltar’s Senior School, Bayside Comprehensive, and its brand-new complex for more than 1000 boys and girls.   You will also find Morrison’s Supermarket to make you feel home from home, the hospital St. Bernard’s and the Europort Business center.

Town Area – is at the real heart of Gibraltar, with its two Cathedrals, Holy Trinity Church of England and, St Mary the Crowned (Roman Catholic), shops, bars along Main Street, the heart of Gibraltar and considered its main High Street and shopping area.  Great access to everywhere.  You won’t need a car here.

Queensway – Serene upmarket area attracting the corporate, retired, wealthy yacht and marina lovers who are looking for luxury apartments, bars and restaurants.  Considered the most expensive area of Gibraltar to buy or rent a property.

Ocean Village – nestled around a marina, this area is very vibrant with lots of bars and restaurants.    It attracts professional couples due to its proximity to Gibraltar’s World Trade Centre and closeness to town.

Living in Gibraltar is fantastic and comes with a great lifestyle, with Spain and all the wonderful beaches along the Costal del Sol just a short drive away.

Employment in Gibraltar:

Gibraltar boasts a low unemployment rate, thanks to its diversified economy. Employment opportunities are abundant in finance, online gaming, tourism, and public services. The territory attracts skilled professionals from around the world, offering competitive salaries and a high standard of living.

Taxes:

One of Gibraltar’s main attractions is its favorable tax regime. There is no VAT, and personal income tax rates are also relatively low, with a maximum rate of just 25%. Corporate Tax is also low, encouraging businesses to establish operations in the territory.  Additionally, there are no capital gains, inheritance, or wealth taxes.

The Education System and Schools:

Gibraltar’s education system follows the British model, with free education provided for children aged 4 to 18. There are several primary and secondary schools, as well as a college offering A-levels and vocational training. The territory also has a university, the University of Gibraltar, offering undergraduate and postgraduate degrees. Education standards are high, with a focus on bilingualism in English and Spanish.

Health System:

Gibraltar provides comprehensive healthcare services through the Gibraltar Health Authority (GHA), funded by the government. Residents have access to free primary and secondary care, including hospital services, dental care, and specialist treatments. The health system is well-regarded, with facilities comparable to those in the UK.

Security:

Gibraltar is considered very safe, with low crime rates and a strong sense of community. The Royal Gibraltar Police maintain law and order, supported by modern infrastructure and surveillance systems. The territory’s small size and close-knit population contribute to its overall safety.

Buying a property in Gibraltar:

Land Tenure – Land tenure in Gibraltar follows UK principles. Land and property are either held on a Freehold or Leasehold basis, with the latter taking various forms depending on the length of the lease term and whether residential or commercial. It is not the policy of the Government to grant Freeholds. Those that do exist are historical and are mainly concentrated in the central Town area. It is now the common practice to make available Crown Lands and property on long leasehold terms, usually for 99 or 150 years. Commercial lettings take various forms depending on the circumstances of the business venture and location. 

Law – Property Law is also broadly based on the UK system as it was prior to the inception of the Law Property Act 1925. There are no restrictions on foreign nationals purchasing, except in some residential developments jointly owned by individuals and Government where purchasers must qualify as eligible for Government Housing.

Tax – Gibraltar is a completely VAT-free jurisdiction.  Gibraltar’s tax system is one of the most favorable in the world.

• There is no Wealth Tax.
• There is no Inheritance Tax
• There is no Capital Gains Tax
• There is no Gift Tax
• There is no Withholding Tax
• There is no tax on liquidation distributions
• There is no tax on dividends paid by any company or to a non-resident individual

Category 2 is a special tax status designed for high net-worth individuals as a means of limiting their potential taxable liability.  Cat 2 individuals only pay tax on the first £118,000 of their worldwide taxable income, irrespective of how much their income actually is.  To qualify individuals must not have been resident in Gibraltar during the five years immediately preceding the year of assessment.  They will also need to have an estimated total net worth in excess of £2 million.

HEPSS is a special tax status designed for Higher Executive Possessing Specialist Skills (HEPSS). Designed to attract talent and top executives to Gibraltar, HEPSS will earn more than £160,000, but pay tax capped on the £160,000 under the Gross Income Based scheme of calculation.  This equates to £3595 payable for every month their HEPSS certificate is valid.

Stamp Duty and Registration:

Stamp Duty – The Gibraltar Stamp Duties Act 2005 (as amended) relates only to transactions involving real estate property situate in Gibraltar. The rates of duty applicable are as follows:

1)   Where the purchaser qualifies as a first- or second-time homebuyer and the property consists entirely of residential property: –

(i)  Nil % on the first £250,000 of the value of the property.

(ii)  5.5% on any balance above £250,000 to £350,000

(iii)  3.5% on the balance above £350,000

2)  Nil % where the property is being transferred between spouses or, following the dissolution of a marriage, between former spouses

3)   In all other instances: –

(i)  Nil % where the value of the property does not exceed £200,000.

(ii)  2% on the first £250,000 and 5.5% on the balance, where the value of the property exceeds £200,000 but does not exceed £350,000; and

(iii)  3% on the first £350,000 and 3.5% on the balance where the value of the property exceeds £350,000.

Additionally, if the property is purchased with the assistance of a mortgage, stamp duty is charged at the rate of 0.13% where the amount borrowed does not exceed £200,000 and 0.20% for amounts in excess of £200,000.

Land Titles Register – a fee of £125 per deed is charged for recording the transaction in the Land Titles Register.

Legal Fees – Fees for conveyancing transactions are generally charged by reference to a scale and equate to between ½% and 1% depending on the size of the transaction.

Three Year Residency:

Some properties in Gibraltar are restricted for sale to qualifying buyers only.  These are typically government-built housing, or those built specifically as affordable housing.  Subsequently they have been released onto the private market and come with restrictive covenants.

• A qualifying buyer must be able to demonstrate continual residency in Gibraltar for the 3 years immediately prior to purchase. The rule applies to all parties to the purchase agreement.
• There may be restrictive covenants on the underleases such as restrictions on letting.  It is wise to check with the estate agent before confirming any decisions.

Three Year Residency properties tend to be cheaper than properties in the private sector and consent needs to be sought by the purchaser’s solicitor/conveyancer at the time of sale subject to contract.

How to Buy a Property:

Buying property in Gibraltar is very straightforward, with no restrictions on foreign ownership. The process involves:

1. Finding a Property: Working with local real estate agents to find suitable
2. Making an Offer: Once a property is selected, an offer is made, and negotiations take place. Once the price is agreed a 2% deposit is made by the buyer which is held in a client account by the Sellers Agent.  If the sale does not go through, this is fully refundable.
3. Legal Work: Engaging a solicitor to handle contracts, title searches, and other legal requirements then commence along with standard vetting of the buyer/seller to determine source of funds and ensure that the transaction complies with the Office of Fair Trading guidelines for Anti Money Laundering and prevention of Proliferation and Terrorist Financing.
4. Financing: Arranging a mortgage if necessary (see below).
5. Completion: Finalizing the purchase, including payment of stamp duty and registration of the property.

 Mortgages:

Mortgages are available from local and international banks operating in Gibraltar. The process typically involves:

1. Application: Submitting an application with financial details and property
2. Assessment: The bank assesses the applicant’s financial situation and the property’s value.
3. Approval: Upon approval, the bank issues a mortgage offer detailing terms and conditions.
4. Completion: Finalizing the mortgage agreement and drawing down funds to complete the property purchase.

Interest rates and terms can be competitive, with various options available to suit different needs.

Why Invest in Gibraltar:

Investing in Gibraltar offers several advantages:

• Favorable Tax Regime: Low corporate and personal taxes attract businesses and investors.
• Stable Economy: Diversified industries and robust economic growth provide a secure investment environment.
• Strategic Location: Proximity to Europe and North Africa enhances trade and business opportunities.
• Modern Infrastructure: Advanced telecommunications, financial services, and transport infrastructure support business operations.
• Regulatory Environment: Strong legal framework and regulatory standards ensure business integrity and investor protection.

Life in Gibraltar: 

Living in Gibraltar offers a unique blend of British and Mediterranean lifestyles. Key benefits include:

• Quality of Life: High standard of living with excellent healthcare, education, and public services.
• Safety and Security: Low crime rates and a safe environment for
• Multicultural Community: A diverse and welcoming population with a rich cultural heritage.
• Beautiful Scenery: Stunning natural landscapes, beaches, and outdoor
• Proximity to Europe: Easy access to Spain and the wider European continent for travel and business.

Gibraltar combines the charm of a small, close-knit community with the advantages of a dynamic, modern economy, making it an attractive place to live, work, and invest.