High Executives Possessing Special Skills (HEPSS) Special Tax Status

28/07/2021 Emma Lejeune, Adrian Pilcher, Sarah Bray, Stuart Dalmedo

Gibraltar’s geographical position at the southern tip of the Iberian Peninsula, coupled with its favourable tax regime, makes this jurisdiction an attractive choice for High Executives Possessing Special Skills (HEPSS) looking to establish residency here.

HEPSS status is a special employment status available to those individuals who intend to relocate to Gibraltar and take up employment.

An individual in respect of whom a HEPSS certificate is issued will need to earn a minimum amount of £160,000 in order to qualify under this allowance. They will pay tax on this amount and no higher amount.

Following new regulations, transitional provisions will apply to an individual in respect of whom a certificate has been issued:

(1) which is valid and in force on 31 July 2021; and
(2) who earns between £120,000 – £160,000.

The individual for whom this applies shall be chargeable to tax as from 1 August 2021 on his assessable income until the earlier of 31st July 2023 or the expiration of the certificate. As per the Gibraltar Budget 2021, this will allow employers not to lose an employee’s HEPSS certificate whilst they readjust their employee’s earnings and qualify under the revised provisions for HEPSS (i.e. to earn more than £160,000).

Download our complete PDF for more information on the updated requirements and application process following the Gibraltar Budget Address 2021.

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