The Government of Gibraltar has published the new residency criteria designed to ensure that applicants demonstrate a genuine economic connection to the jurisdiction, while safeguarding public resources and promoting sustainable growth.
1. Core Eligibility Requirements
Individuals applying for a residence permit must satisfy the following criteria:
• Employment: Applicants must hold a valid employment contract with a Gibraltar-based business, which has been trading for at least a year and is properly established, registered, licensed, and compliant with its regulatory and tax obligations.
• Minimum Earnings: The contract must generally reflect earnings aligned with the average gross annual salary in Gibraltar (currently indicated at approximately £37,500, subject to annual updates).
• Minimum Salary Waiver: If the applicant is below 30 years of age, the requirement to have a minimum annual salary aligned with the average gross annual salary of Gibraltar (£37,500 subject to annual updates) may be waived if the employer pays the tax and social insurance contributions as if the employee’s salary were the gross annual earnings in Gibraltar as per the Employment Survey of that year.
• Accommodation: Applicants must evidence suitable accommodation in Gibraltar, either through ownership or a long-term rental (minimum 12 months), which must serve as their primary residence. If the primary residence/property is purchased, it cannot be let during the duration of the residence permit and must be legitimately available for the applicant’s exclusive use during that period.
• Age Requirement: Applicants are generally required to be aged 55 or under, subject to limited discretion.
• Vetting: A formal vetting process from the applicant’s country of origin is required.
2. Additional Requirements for Businesses operating for less than a year or self-employed Individuals
Where an applicant is connected to a newer business or is self-employed, the following requirements will apply:
• An advanced payment will be required equivalent to the following:
a. Total employee and employer social insurance contributions for the first year of employment; and
b. The total tax payable on the equivalent of the average gross annual earnings in Gibraltar, taxable at 25%.
3. Business Registration Requirements
• For a business to obtain registration under the Business, Trades and Professions (Registration) Act and licensed under the Fair-Trading Act, the CEO of the Department of Business may have regard to factors which may include:
o The creation of full time or part time employment in Gibraltar;
o The provision of in-demand skills required in the jurisdiction;
o The rental of suitable office or commercial space in Gibraltar;
o A positive tax filing history; and
o The future generation of economic activity in Gibraltar.
4. Anti-Avoidance and Monitoring Measures
The proposed regime includes the following safeguarding measures:
• Employment terms will be monitored to ensure that salary levels are not reduced after a permit is granted without reasonable justification.
• Authorities will verify that employers remain compliant with all financial and regulatory obligations.
5. Renewal and Ongoing Conditions
Residence permits are not indefinite and are subject to continued compliance:
• Permits will be renewable annually, requiring confirmation that all eligibility criteria continue to be met.
• A permit may lapse automatically 8 weeks after the filing of a Notice of Termination of Terms of Engagement, unless a new employment contract has been filed.
• If payments of tax or social insurance are stopped, unless the employee can produce evidence that payments have been deducted from their salary but not paid by the employer, their residence permit will automatically lapse.
6. Benefits of Residence
Gibraltar residence provides limited but important entitlements:
• Healthcare
• Schooling in Gibraltar for any children under the age of 18, unless in full time education
• A scholarship for any dependent child after 10 years of continuous lawful residence and uninterrupted payment of tax and social insurance
7. Restrictions on Social Benefits
Residents will not generally be entitled to:
• Public housing or affordable housing
• Elderly residential care or domiciliary care
• Berths in the Small Boats Marina (or any other Government Berthing Scheme)
• Other wider social benefits
Only residents who are British Citizens and have a period of 20 years of residence will then be able to apply for Gibraltarian Status and access all services.
8. Partners of Individuals
Unmarried partners of an individual with Gibraltarian Status shall be permitted to reside in Gibraltar where evidence is provided of a relationship of a minimum period of 2 years.
Additionally, any individual who is applying for residence in Gibraltar wishes for their spouse to reside with them shall pay an amount equivalent to the maximum employee’s social insurance contributions to the Government of Gibraltar on behalf of their spouse.
Individuals applying for residence may only be accompanied by their spouse and/or children.
9. Transitional Provisions
• Individuals already resident in Gibraltar prior to 6 October 2025 will remain subject to the current regime.
• The new criteria will primarily affect new applicants.
10. Fines
Individuals residing in Gibraltar without a Permit of Residence may be imposed a fine of up to £2,500.
11. Category 2 Status and High Executive Possessing Specialist Skills (HEPSS)
It should be noted that the above residency criteria do not apply to individuals holding, or applying under, Category 2 Status or HEPSS. These regimes remain unchanged and, as we understand it, the existing residence requirements applicable to Category 2 and HEPSS individuals continue to apply independently of the new rules.
