How can I work in Gibraltar?
You will be pleased to know that the laws surrounding employment in Gibraltar is not a closed book. However, you may need a residence permit, depending on what nationality you are.
Gibraltar Permits
The only nationalities that are allowed to live and work in Gibralatar without a permit are Gibraltarians and British citizens. If you are a National from other EU member state you are issued with a residence permit. However, it is not as clear cut as that, you have to provide proof that you will not become a burden to Gibraltar. If you are a Non-EU citizen you will find it difficult to obtain a residence permit in Gibraltar as they must first produce a work contract, and that can only be issued if the employer can prove that no Gibraltarian or EU citizen is able or willing to do the job.
If you think that marrying a Gibraltarian will grant you the right to a residence permit - think again! Currently a non-Gibraltarian man married to a woman from Gibraltar receives a residence permit as part of the package. Non-Gibraltarian women marrying local men will have to apply for a permit. But this is theory, in practice a wife receives permission to remain on The Rock as long as her husband is living there.
Benefits of working in Gibraltar
Income tax in Gibraltar is quite high, however, try to take advantage of High Net Worth Individual (HNWI) status or gain exemption as an expatriate executive.
In Gibraltar every taxpayer may choose between the normal system and the new Gross Income Based system and pay under whichever results in the lower tax.
Tax Rates:
* 20% on first £25,000 income
* 30% on next £75,000
* 40% above £100,000
Due to the new regulations, no taxpayer in Gibraltar that earns below £25,000 per annum will pay more than 20% tax. NO taxpayer with income below £50,000 per annum will pay more than 25% tax.
Gibraltar Residence and Liability for Taxation
For taxation purposes, an individual is either resident or non-resident, and nationality is not a factor in determining tax status. An individual is considered resident in Gibraltar if he has accommodation there and sets foot on the territory during the tax year (1st July to 30th June in the following year). This is the basis that was applied in the UK until 1993/94.
Gibraltar introduced 'High Net-Worth Individual Status' to encourage wealthy people to live there. A person who has not been resident in Gibraltar for the last 5 years may apply for this status, which limits total tax payable. Expatriate executives or people with specialist skills may be able to obtain a similar limitation on total tax payable.
The tax treatment of non-resident individuals, and with attention to category 3 and 4 individuals, is also described under Offshore Legal and Tax Regimes.
Working Hours and Holidays
Gibraltar has similar working hours and salaries that the UK does, excluding London from this equation!. The legal treatment of employees in the work place is also the same as the UK.
The average wages for basic positions in administration, secretarial or human resources is 12k - 17k. As you would expect specifically skills roles such as IT command higher wages normally in the range of £20k - £30k. Sales tend to command a basic wage of between £1k - £1500 and OTEs are variable up to six figures.
Cost of Living and Quality of Life
Gibraltar does not charge VAT so there are good savings to be made there! Interest is fully allowable on mortgages in Gibraltar, and Gibraltar property is cheaper than in the UK.
Currently Gibraltar is served by direct, twice-daily British Airways flights from Gatwick, Monarch flights from Luton and trips to and from Manchester fly four times a week. Gibraltar is 2 ½ hours flying time from London. Malaga is reached in less than an hour and a half of hassle-free motoring through the spectacular Andalusian countryside. Gibraltar are now making their runway and airport larger and increasing this into La Linea.
Gibrlatar operates under English common law, despite it being self-governing. The Chief Justice is appointed by the Crown, and judgments are recognised and upheld internationally. Access to the courts is swift, efficient and less costly than in the United Kingdom.
Gibraltar is family-friendly. There are income tax benefits for married couples and those with children. Gibraltar schools operate on the UK curriculum and exam structure, they have a good reputation, and are freely available to Gibraltar residents.