Income Tax in Gibraltar
Be aware that Gibraltar is duty free on certain goods NOT income tax free!
It is important to note that if you work in Gibraltar but live in Spain then you must pay income tax in Gibraltar.
Click here for a chart that will show your monthly tax contribution - take your annual salary, divide it by 12, then subtract the tax and employee social security shown on the chart, to show the amount of money you will have left.
Most people fall under the Gross Income Based System (GIBS) so on the form for the tax calculator, just enter your salary in the 'Assessable annual income' section, ignore the other sections, click 'continue' then 'show results' - your total yearly tax is the figure underneath 'GIBS'
Social security is approx 110 pounds per month
Personal Income Tax Rates
To ensure residents and people employed in Gibraltar can benefit from the growth of the Gibraltar economy and balance the difference with the new low corporate tax rate, the Government have again reduced the effective personal tax rates.
It was announced that for the Gross Income Based tax system (under this system no allowances and deductions are allowed):
- for people with gross incomes between £8,000 and £16,000 per annum, the first £10,000 will be taxed at 8% (previously 10%) and the remainder at 20%
- for those with gross incomes between £16,000 and £25,000, new bands are introduced as follows:
- income: £16,000 - £17,000, tax on the first £6,000 is at 0%
- income: £17,000 - £18,000, tax on the first £5,000 is at 0%
- income: £18,000 - £19,000, tax on the first £4,000 is at 0%
- income: £19,000 - £20,000, tax on the first £3,000 is at 0%
- income: £20,000 - £25,000, tax on the first £2,000 is at 0%
- remaining income taxed at 20%.
- For individuals with gross incomes between £25,000 and £35,000 the maximum effective tax rate will be 20%.
- For individuals with gross incomes between £35,000 and £100,000 the maximum effective tax rate will be 26.25%.
- The top rate band of 35% for gross incomes above £100,000 is abolished. The top rate is now just 29%.
- For incomes above £100,000 a year the tax rates fall at the first £25,000 20%, £25,001 to £353,000 29%
(£353,001 to £704,800 20%,£704,800 to £1 million 10%, Excess over £1 million 5% )
The allowances and deductions applicable under the other personal income tax system, the Allowances Based System, are all increased by 2.8%. The tax rates under this system remain unchanged.
All the above mentioned changes will come into effect for the tax year beginning 1 July 2010.
High Executives Possessing Specialist Skills (HEPPS)
There is an increase in capped taxable income from £100,000 to £120,000.
However, the abolition of the 35% Gross Income
Based System tax rate means the extra £20,000 will be taxed at only 29%. This results in an effective tax rate for individuals qualifying for HEPPS status of 27.125% (previously 26.75%).
Social Insurance Contributions
The maximum weekly social insurance contribution cap rises by 10% in respect of employers’ and self-employed contributions from 1 July 2010. This amounts to an increase of £3 per week in the maximum contribution for employers to £32.97.
Employees’ maximum social insurance contributions increase by £1.42 per week or 6% (only affecting those earning more than £12,000).
We accept no responsibility for the accuracy of this information and suggest you get professional advice for an exact calculation.
We strongly recommend that you visit the Gibraltar goverment website for specific infomration and a tax calculator - http://www.gibraltar.gov.gi/
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