Can I Move to Gibraltar From the UK: Residency Routes and Tax-Efficient Pension Access Options

As an English-speaking British Overseas Territory with its own domestic tax and immigration system, Gibraltar maintains strong constitutional and cultural ties to the UK and has a well-established British expat community.

While Gibraltar offers a capped personal income tax regime for qualifying residents, it does not operate a zero-tax pension system. The extent to which pension withdrawals can be taxed at low rates depends on how the pension is structured, whether UK pension rules continue to apply, and the timing of any withdrawals relative to UK tax residence.

Gibraltar should therefore be viewed as a low-tax planning jurisdiction, not an automatic tax-free pension liquidation destination.

Its favourable tax environment has made it particularly attractive to high-net-worth British nationals seeking to access their pension benefits in a controlled and structured manner.

As a result, Gibraltar appeals to those seeking to draw on substantial pension wealth over time while limiting annual tax exposure, without relocating to a geographically distant or culturally unfamiliar jurisdiction.

This article will address the question of “Can I move to Gibraltar from the UK?”, particularly in the context of optimising the tax treatment of your pension income. It will explore the territory’s unique residency and taxation regimes and outline their application processes.

Can a UK Citizen Move to Gibraltar?

UK citizens can move to Gibraltar, provided they meet the territory’s immigration and residency rules. Gibraltar is a British Overseas Territory with its own legal and regulatory framework, which is strongly influenced by the UK system and is familiar to many UK nationals.

While British nationals do not need a visa to stay, work, or study in Gibraltar, longer stays require obtaining appropriate residency documentation.

Under the Immigration (EU Exit) Regulations 2025, Gibraltar introduced a temporary restriction on the issuance of new residence documentation to certain UK and EEA nationals who did not already hold qualifying residence status as of 6 October 2025.

Applications submitted before that date continue to be processed, while new applications may be refused unless approved on a discretionary basis in the public or economic interest.

This measure was introduced in response to capacity and housing pressures and does not represent a permanent closure of Gibraltar’s residency programmes.

Once the restriction is lifted or where discretionary approval is granted, UK nationals may pursue long-term residence in Gibraltar under one of the following residency pathways:

1. Category 2 residency
2. HEPSS residency

Until 2022, foreigners could apply for self-sufficient residency status in Gibraltar. This residency route was designed for self-employed individuals and self-sufficient UK citizens who receive a UK State Pension.

However, as Gibraltar progressed negotiations relating to a Schengen-style border arrangement with the EU, residency policy increasingly required a direct link to taxation.

As the self-sufficient residency status provided a residence permit rather than tax residency in Gibraltar, the government abolished this route in 2022.

Category 2 Residency

Category 2 residency, often referred to as Cat 2 status, allows high-net-worth (HNW) individuals to reside in Gibraltar and benefit from a special tax regime that limits personal income tax exposure.

As a Category 2 resident, Gibraltar income tax is capped annually and applies only to the first £118,000 of assessable income in a given tax year. At current rates, this results in a maximum annual Gibraltar income tax liability of approximately £42,380.

This cap applies on a year-by-year basis and does not represent a lifetime or transactional tax limit. The tax treatment of pension withdrawals depends on whether the pension remains subject to UK pension legislation, including restrictions on lump-sum access and post-transfer reporting requirements.

To be eligible for Category 2 residency, applicants are typically required to:

• Demonstrate a net worth of at least £2 million.
• Own or rent approved residential accommodation in Gibraltar.
• Provide evidence of non-residency in Gibraltar for the five years preceding the application.
• Provide proof of private health insurance coverage.

Once granted, Cat 2 status is not dependent on meeting a minimum number of days physically spent in Gibraltar. However, applicants must continue to satisfy the eligibility conditions, including maintaining suitable accommodation and confirming financial standing.

Additionally, from 1 July 2022, new applicants are required to pay a tax deposit of £42,380 as part of the application process, along with a non-refundable application fee of £1,197.

The tax deposit is generally refundable when Cat 2 status is relinquished, subject to the settlement of any outstanding tax liabilities.

HEPSS Residency

High Executives Possessing Specialist Skills (HEPSS) is a residency regime designed for senior professionals whose expertise is considered beneficial to Gibraltar’s economy.

Individuals granted HEPSS status are taxed under Gibraltar’s gross income-based system, with tax generally applied only to the first £160,000 of assessable employment income, resulting in an annual tax liability of approximately £39,940.

To qualify for HEPSS, applicants must:

• Be a suitably qualified professional in a high-demand sector such as finance, insurance, or technology.
• Secure a senior management or executive role in Gibraltar.
• Meet the minimum annual salary threshold of £160,000.
• Have been non-resident in Gibraltar for the three preceding years.
• Provide supporting documentation, including a valid passport, CV, and references.
• Pay the applicable government fee of £1,168.

HEPSS status remains valid only while the qualifying employment conditions continue to be met.

Category 2 vs. HEPSS: Which Residency Route To Choose as a UK Expat

Both Category 2 and HEPSS residency regimes are designed to attract affluent individuals, but they serve different policy objectives and suit different applicant profiles.

Working with our financial advisers at Titan Wealth International can help ensure you select the most appropriate Gibraltar residency route based on your personal circumstances.

We assess your financial position and relocation objectives to provide guidance aligned with both regulatory requirements and long-term tax planning considerations.

How To Move to Gibraltar From the UK: A Step-by-Step Residency Application Process

Once you have selected the most appropriate Gibraltar residency pathway, the application process typically involves the following steps:

1. Secure accommodation
2. Collect documentation
3. Submit the application
4. Obtain a civilian registration card

Secure Accommodation

Obtaining residency in Gibraltar as a UK citizen generally requires purchasing or renting suitable accommodation that meets the conditions of your chosen residency route.

For Cat 2 status, the accommodation must be available exclusively for your use throughout the year and be considered appropriate for sustaining the lifestyle of an HNW individual.

For HEPSS, you must secure accommodation approved by the relevant Gibraltar authorities, which must be suitable for housing you and any dependents, where applicable.

Housing Availability and Cost Considerations for Category 2 Applicants

Gibraltar has a limited residential property market, and suitable accommodation for Category 2 applicants is in high demand. Properties that meet residency requirements are often concentrated in premium developments and may involve significant purchase prices or rental costs.

As accommodation must usually be secured before a residency application can proceed, early engagement with local property advisers is strongly recommended. Housing availability is frequently one of the most time-sensitive aspects of the relocation process.

Collect Documentation

Regardless of the residency route you choose, you are typically required to provide:

• A valid passport or other government-issued identification
• Proof of suitable accommodation in Gibraltar
• Evidence of comprehensive private health insurance (where required)

In addition, each residency pathway requires submitting additional documentation:

Applicants should also expect enhanced due diligence checks, particularly under Category 2, reflecting Gibraltar’s focus on financial substance and regulatory standards.

In many cases, you will also need to open a bank account in Gibraltar and register with the local tax authorities as part of the overall relocation and compliance process.

Complete and Submit the Application

Complete the application form for your chosen residency permit and attach all required supporting documents. Once prepared, submit the application to Gibraltar’s Finance Centre Department.

Processing times can vary depending on application volumes and individual circumstances, but where applications are accepted, approval is commonly granted within three to six months.

Once residency status is approved, you can proceed to apply for a civilian registration card, which serves as formal proof of residence in Gibraltar.

Obtain a Civilian Registration Card

To apply for a civilian registration card, you must provide key personal details and supporting documentation, such as:

• Passport
• Passport-sized photograph
• Residential address
• Birth certificate
• Proof of income

Submit the completed application form and supporting documents to the Civil Status and Registration Office. The card is typically valid for one year and can be renewed, provided you continue to meet relevant eligibility requirements.

The initial fee for obtaining the card is £25, while the renewal fee is £10.

What Are the Tax Implications of Moving to Gibraltar From the UK?

After relocating to Gibraltar from the UK, your overall tax position will depend on your chosen residency path and your tax residency status.

As a Cat 2 or HEPSS status holder, you are automatically considered a tax resident in Gibraltar, but are subject to a special tax regime as follows:

1. Category 2 status holders are liable for tax in Gibraltar only on the first £118,000 of their worldwide income.
2. HEPSS holders are taxed only on the first £160,000 of their employment income earned in Gibraltar.

Besides obtaining tax residency in Gibraltar through the Cat 2 and HEPSS regimes, UK expats can also become Gibraltar tax residents if they:

• Spend over 183 days per year in Gibraltar
• Maintain a permanent residence in Gibraltar and have spent 300 or more days in the country across three consecutive years

Gibraltar’s personal tax framework is generally considered more favourable than the UK’s for higher earners, and it can materially reduce overall tax exposure for qualifying expats. Although both jurisdictions operate progressive income tax systems, the UK’s top rate can reach 45%, while Gibraltar’s headline marginal rate under its gross income framework reaches 28%.

The table below outlines the applicable income tax rates in Gibraltar:

Unlike the UK, Gibraltar does not impose tax on capital gains, inheritance, dividends, or goods and services.

However, UK-situated assets and long-term UK resident status may still give rise to UK tax liabilities despite Gibraltar’s domestic tax framework.

Gibraltar vs the UAE: How Do They Compare for UK Pension Holders?

While tax-neutral jurisdictions such as the UAE, Qatar, and Bahrain are often considered by UK pension holders seeking to minimise tax on pension withdrawals, Gibraltar offers a distinctly different value proposition.

The UAE operates a zero-income-tax regime, which can allow qualifying expats to access pension income without local taxation. However, this often requires relocating to a geographically distant jurisdiction with a different legal system, climate, and cultural environment.

By contrast, Gibraltar does not provide a zero-tax pension framework. Instead, it offers a capped personal income tax regime for qualifying residents, combined with a UK-aligned legal system, English-speaking environment, and close proximity to the UK.

For many retirees and high-net-worth individuals, this familiarity and accessibility can outweigh the benefits of absolute tax neutrality.

Gibraltar is therefore best suited to individuals who prioritise continuity, regulatory familiarity, and proximity to the UK, while still seeking to materially reduce their overall tax exposure.

Those whose primary objective is complete elimination of income tax may find Middle Eastern jurisdictions more appropriate, subject to lifestyle and relocation considerations.

As a result, Gibraltar appeals to those seeking to draw on substantial pension wealth in a controlled and tax-efficient manner, while remaining close to the UK and within a familiar legal and cultural environment.

Can You Be Liable for UK Tax After You Move to Gibraltar?

You may remain subject to tax in the UK after moving to Gibraltar if you continue to be treated as a UK resident for tax purposes under the Statutory Residence Test. This may occur if any of the following circumstances apply:

• You spend 183 days or more in the UK in a single tax year.
• You work full-time in the UK for any period in a year, with at least one UK workday falling within the tax year in question.
• Your only home is in the UK for a continuous period of at least 91 days, and you spend at least 30 days there during the tax year.

Where exposure to tax arises in both jurisdictions, relief may be available under the UK–Gibraltar Double Taxation Agreement (DTA).

Under the UK–Gibraltar DTA, private pension income is generally taxable only in the country of residence, while pensions paid in respect of UK government service remain taxable in the UK.

However, this treaty treatment does not override UK domestic pension legislation where it continues to apply, including in relation to UK-registered pension schemes and recent transfers to overseas pension arrangements.

How To Optimise the Tax Treatment of Your Pension Income as a UK Expat in Gibraltar

To benefit from Gibraltar’s favourable tax regime and optimise the tax treatment of your pension income, you may transfer your UK pension (including defined contribution and certain defined benefit arrangements) to a qualifying recognised overseas pension scheme (QROPS) based in Gibraltar. These schemes provide the following potential benefits:

• A wide range of investment opportunities
• Pension access from the minimum pension access age applicable under UK and Gibraltar-aligned pension rules (currently 55, rising to 57)
• The possibility of lump-sum access of up to 30%

To structure pension withdrawals more tax-efficiently as a UK expat in Gibraltar, careful planning is required, taking into account both Gibraltar tax rules and continuing UK pension legislation., you should take the following steps:

1. Becoming a Gibraltar tax resident under a qualifying status (typically Category 2).
2. Transferring a UK pension to a Gibraltar QROPS where appropriate and without triggering the overseas transfer charge (OTC).
3. Drawing benefits in a manner consistent with UK post-transfer rules and reporting requirements.

You can streamline a UK pension transfer to a QROPS in Gibraltar by consulting a financial adviser at Titan Wealth International. We can help you understand the rules and implications of the transfer, guide you through the transfer process, and suggest alternatives, such as a self-invested personal pension (SIPP).

Even where a UK pension is transferred to a Gibraltar-based QROPS, UK tax rules can continue to apply for up to ten UK tax years following the transfer.

Large or accelerated withdrawals may still be taxable in the UK or treated as unauthorised payments. Gibraltar-based pension arrangements therefore require careful sequencing and are not suitable for all pension holders.

What Is the Inheritance Tax Liability for UK Expats in Gibraltar?

As of 6 April 2025, your inheritance tax (IHT) liability in the UK is no longer determined by your domicile. Instead, individuals classified as long-term UK residents (LTRs) may be subject to a 40% IHT on the value of an estate exceeding the nil-rate band of £325,000.

You are treated as an LTR if you have been a UK tax resident for at least 10 out of the previous 20 tax years. Where this applies, the UK IHT may be levied on your worldwide estate, regardless of your residency status at the time of death.

Transitional provisions and trust planning may still be relevant, particularly for individuals who ceased UK residence before April 2025 or who have existing trust structures in place.

While you may not be able to eliminate UK IHT entirely as an expat in Gibraltar, working with a qualified financial adviser can help ensure your affairs are structured strategically to reduce your tax exposure and support effective long-term estate planning.

Who Moving to Gibraltar May Not Be Suitable For

While Gibraltar can offer meaningful advantages for certain UK retirees and high-net-worth individuals, it is not suitable for everyone.

In particular, relocating to Gibraltar may not be appropriate for individuals who are seeking to fully liquidate a UK pension in a single tax year, those unwilling or unable to sever UK tax residence, or those with relatively modest pension values where the costs of relocation and ongoing compliance outweigh the potential tax benefits.

Gibraltar is also unlikely to suit individuals expecting a zero-tax outcome without careful structuring, or those whose primary objective is immediate, unrestricted access to their entire pension fund, rather than phased withdrawals over time.

As with any cross-border relocation, suitability depends on individual circumstances, objectives, and tolerance for regulatory complexity, as well as willingness to engage in multi-year tax and pension planning.