Following HM Government of Gibraltar’s announcement of the new residency criteria and the subsequent publication of the Residency Regulations 2026 (the “Regulations“), Gibraltar has introduced a new framework governing the right to reside in Gibraltar. For summary Q&A click here.
The Regulations, which came into force on 14th July 2026, have been enacted to facilitate the implementation of Article 45 of the Treaty on Gibraltar and the European Union. They replace, for relevant applicants, the previous residence document regime with a permit-based system under which a residence permit grants the legal right to reside in Gibraltar.
Importantly, holders of Gibraltar identity cards are not required to obtain a residence permit.
The Regulations establish a number of distinct routes to residence in Gibraltar, including for:
- Employees;
- Self-employed individuals;
- Students enrolled at the University of Gibraltar;
- Crown servants, Ministry of Defence personnel and members of HM Armed Forces;
- Existing residents transitioning from the previous legislative framework; and
- Permanent residents.
The new regime seeks to link residency rights more closely to employment, economic activity, accommodation and regulatory compliance, whilst preserving protections for existing residents and implementing transitional arrangements.
Protection for Existing Residents
Whilst the Regulations introduce significant changes for new applicants, they are not intended to affect existing Gibraltarians or those whose residency rights have already been established under the previous framework.
The Government’s published guidance states that the new criteria are not intended to apply to current holders of Gibraltar identity cards or current residents who obtained residence before 6th October 2025.
Consistent with that policy objective, the Regulations contain a number of savings and transitional provisions designed to preserve the position of existing residents, permanent residents and persons whose rights continue to be protected under the Withdrawal Agreement, the EEA EFTA Separation Agreement or the Swiss Citizens’ Rights Agreement.
Existing residents holding valid civilian registration cards may continue to qualify for residence permits under broadly the same conditions as applied under the previous regime, provided they can demonstrate lawful and continuous residence in Gibraltar during the six months immediately preceding their application.
In addition, the Chief Minister has been granted a discretionary power to issue residence permits to certain individuals who were resident in Gibraltar before the Regulations came into force, but who were not in possession of a valid residence document or civilian registration card at the relevant time.
Residence Through Employment
One of the principal routes to residence under the new framework is through employment.
The Regulations introduce a number of eligibility criteria intended to demonstrate a genuine and substantive connection with Gibraltar. In general, applicants must hold an employment contract of at least one year’s duration and receive gross annual earnings that are equal to or exceed Gibraltar’s published average gross annual earnings, currently £37,500 per annum.
The employer must also meet certain requirements. Businesses must be actively trading in Gibraltar, hold the necessary licences under the Fair Trading Act 2023 (or other applicable regulatory approvals where carrying on regulated activities), and be compliant with their filing and payment obligations. These requirements are designed to ensure that residence rights are granted only in connection with legitimate and compliant businesses operating within Gibraltar’s economy.
Applicants must also demonstrate that they have secured suitable accommodation in Gibraltar. This may be by way of ownership or a rental agreement, and accommodation arrangements may be made conditional upon the grant of the residence permit. However, the Regulations make it clear that the accommodation must represent a genuine primary residence. Holiday lets, rental agreements of less than 12 months and properties that are not intended to be occupied as the applicant’s principal home will generally not qualify. In the case of rental accommodation, the lease must generally be for a minimum period of 12 months and be entered into in good faith on genuine commercial terms.
The Regulations also introduce restrictions on vessel-based accommodation. Whilst individuals who were already residing on a vessel prior to the commencement of the Regulations may continue to rely on that accommodation, new applicants will generally not be able to satisfy the accommodation requirement by residing on a vessel.
In addition, all applicants must successfully undergo vetting by the authorities of the country in which they were most recently habitually resident, reflecting the emphasis placed on security and suitability under the new regime.
The Introduction of an Age Threshold
One of the most notable changes introduced by the Regulations is the imposition of a general age limit of 55 years for new employees and self-employed applicants.
Whilst this represents a significant policy development, the Regulations also recognise that Gibraltar’s economic needs may require flexibility. The Chief Minister is therefore granted discretion to waive both the age and earnings requirements where an individual possesses skills that are considered important to Gibraltar’s economic development or where there is a demonstrable shortage of labour within a particular sector or industry. This discretion is likely to prove particularly important in sectors facing skills shortages or where specialist expertise is required to support economic growth.
Facilitating Entry for Younger Workers
The Regulations also contain measures intended to support younger individuals entering Gibraltar’s workforce. Where an employee is under the age of 30 and does not meet the minimum earnings requirement, the Authority may nevertheless issue a residence permit provided that the employer makes a prescribed deposit to the Government.
The deposit must cover the equivalent employee and employer social insurance contributions that would be payable if the employee earned Gibraltar’s average gross annual earnings, together with an additional amount equal to 25% of Gibraltar’s average gross annual earnings.
These provisions appear designed to promote workforce development and assist businesses seeking to recruit junior employees who may not yet command salaries at the required earnings threshold.
Financial Deposits for New Businesses
Where an employer has held a business licence or relevant regulatory authorisation for less than one year, an application for a residence permit will generally not be processed unless the employer first pays a deposit to the Government.
The deposit is calculated by reference to:
- The anticipated employee and employer social insurance contributions for the first year of employment; and
- An additional sum equal to 25% of Gibraltar’s average gross annual earnings.
The Government may, in certain circumstances, reduce these deposits where it considers it appropriate to do so in Gibraltar’s interests.
These provisions are clearly intended to provide protection against potential liabilities while discouraging the misuse of newly established businesses as a means of obtaining residence rights.
Residence Through Self-Employment
The Regulations establish a parallel route for self-employed individuals seeking to relocate to Gibraltar.
Applicants must generally satisfy the relevant earnings threshold, demonstrate that they have secured suitable accommodation, establish that they are eligible to carry on business within Gibraltar and successfully complete the required vetting procedures.
In addition, newly established self-employed applicants will generally be required to make a deposit covering anticipated social insurance liabilities together with an additional contribution linked to Gibraltar’s average earnings. The requirements broadly mirror those applicable to employees and reflect the overarching principle that residence rights should be linked to genuine economic activity within Gibraltar.
Students, Crown Servants and Military Personnel
The Regulations also address categories of individuals whose connection with Gibraltar arises from education or public service.
Students enrolled on a full-time course at the University of Gibraltar may apply for a residence permit under a dedicated route. Similarly, members of His Majesty’s Armed Forces, Ministry of Defence personnel, Crown servants and their recognised dependants may qualify for residence permits under specific provisions tailored to their circumstances.
These measures ensure that individuals whose presence in Gibraltar serves public, educational or governmental purposes continue to have an appropriate pathway to residence.
Family Members
The Regulations also recognise the importance of family unity. Provisions are included allowing qualifying family members to be included in applications made under the employee, self-employed and student routes. These include spouses and civil partners, children under the age of 18 and children over the age of 18 who are undergoing full-time education.
Family members over the age of 18 must also satisfy the applicable vetting requirements.
The Regulations also make provision for unmarried partners of Gibraltarians. Unmarried partners of Gibraltarians may qualify for a residence permit if they can demonstrate that they have been in a genuine and durable relationship akin to marriage for at least two years at the date of application. The relationship must be ongoing and supported by evidence of an established personal relationship. Relationships based solely or predominantly on remote or online communication will not qualify.
Government Discretion to Grant Residence Permits
In addition to the specific residence routes established under the Regulations, the Government retains a broad discretionary power to direct the issue of a residence permit where it considers it to be in Gibraltar’s interests.
The Regulations provide that a residence permit may be granted to a person who is of good character where, in the Government’s opinion, the grant of residence would be in Gibraltar’s interests. The Regulations identify a number of circumstances in which this discretion may be exercised, including where residence is expected to generate wider economic or reputational benefits for Gibraltar, where a refusal would cause extreme hardship, where residence would contribute to Gibraltar’s cultural, educational or social development, or where there is another compelling public interest justification.
The power may also be exercised in relation to family members and provides an important degree of flexibility within the new framework, allowing exceptional cases to be considered outside the standard residence permit routes.
Appeal Rights
An important safeguard introduced by the Regulations is the establishment of an independent Residency Appeals Tribunal, which provides applicants with a formal mechanism to challenge decisions that adversely affect them.
Where an application is refused, a permit is revoked or a renewal application is refused, the affected person will have the opportunity to seek an independent review of that decision. Appeals must generally be lodged within seven days of the applicant being notified of the decision.
This ensures that applicants are not solely reliant on the original decision-maker and have access to a transparent and impartial appeals process.
Renewal and Revocation of Residence Permits
Residence permits will generally be valid for one year and may be renewed where the relevant conditions continue to be satisfied.
The Regulations also provide for permits to be refused, revoked or not renewed in certain circumstances, including where the holder ceases to satisfy the relevant conditions, ceases making tax or social insurance contributions, fails to disclose accurate information, fails to notify material changes in circumstances or engages in residence fraud.
In the employment context, a residence permit will automatically be revoked 16 weeks after a notice of termination of terms of engagement is filed with the Department of Employment unless the Authority is satisfied that the individual has secured a new qualifying employment contract.
Fees
The application fee for a residence permit is £250. The renewal fee is £20. These fees also apply in respect of qualifying family members included within an application.
Category 2 and HEPSS
The Regulations are principally concerned with the introduction of a new residence permit framework and do not expressly amend the existing Category 2 or High Executive Possessing Specialist Skills (“HEPSS”) regimes. Accordingly, it appears that those regimes will continue to operate separately from the new residence permit framework, with the existing legislative requirements applicable to those regimes remaining unchanged. The Regulations themselves are focused on the creation of a new residence permit system and do not contain provisions specifically directed at Category 2 or HEPSS status.
This is likely to be of particular interest to existing and prospective Category 2 and HEPSS applicants, as the age, earnings and employment requirements introduced by the Regulations do not form part of those specialist tax regimes. However, given the wider changes to Gibraltar’s residency framework, the practical interaction between the various residency and tax regimes is likely to become clearer as further guidance is issued and the new system is implemented in practice.
Individuals considering Category 2, HEPSS or other residency routes should therefore continue to obtain specific advice in relation to their particular circumstances, particularly where applications may involve both residency and tax considerations.
Looking Ahead
The Regulations represent a significant evolution of Gibraltar’s residency framework. By linking residence rights to employment, economic contribution, accommodation and regulatory compliance, the new regime seeks to strike a balance between supporting economic growth whilst ensuring effective control over residency rights.
The Regulations also introduce a number of important safeguards, including vetting requirements, accommodation controls, transitional provisions for existing residents, discretionary powers to address exceptional cases and formal appeal rights.
For employers, entrepreneurs, prospective residents and existing residents alike, understanding the new requirements will be essential as Gibraltar begins operating under its new Treaty-based residency framework. The practical implications of these changes are likely to be felt across a wide range of sectors and may have a significant impact on recruitment, workforce planning and future relocation decisions.
How ISOLAS Can Help
The introduction of the Residency Regulations 2026 represents one of the most significant changes to Gibraltar’s residency framework in recent years. The interaction between the new residence permit requirements, existing residency rights, employment arrangements, business activity and specialist regimes such as Category 2 and HEPSS will require careful consideration on a case by case basis.
ISOLAS regularly advises individuals, families, employers and businesses on Gibraltar immigration, residency and relocation matters. If you would like to discuss how the new Regulations may affect you, or require assistance with a residency, Category 2 or HEPSS application, please contact a member of our Private Client team.
