Gibraltar Residential Market

Gibraltar Residential Market
 
Gibraltar As A Destination For HNWI

25 February 2016, by Paul Tostevin

Gibraltar’s prime property offers value compared to rival jurisdictions. The territory tops our Sunshine/Spend Index

 

 

 

▲ Gibraltar offers certain tax advantages for wealthy individuals

For those seeking a home, Gibraltar’s living environment has much to offer. Safe and secure with very low crime rates, the rule of law is supported by a legal system that follows the British model. Gibraltar is a close-knit community with a diverse range of nationalities, ethnicities and religious beliefs.

Gibraltar offers certain tax advantages for those wealthy individuals who make it their primary home. The territory levies no inheritance tax, wealth tax or capital gains tax. ‘Category 2’ status offers HNWI with at least £2m in net assets a maximum annual tax liability of £29,800. For those in receipt of investment or retirement income ‘Self Sufficiency’ status is an option. A flat 2.5% rate income tax applies to those drawing down pensions that have been transferred from the UK, all other distributions from pensions are tax free.

For those choosing Gibraltar for business, the ‘Higher Executive Possessing Specialised Skills’ (HEPSS) is a tax status for senior executives earning more than £120,000, whereby tax is only charged on the first £120,000 of their income.

The global market for HNWI is a competitive one and rival jurisdictions across the globe offer comparable systems. One of Gibraltar’s particular advantages is its low-cost prime property and sunny, relatively dry climate.

We have combined the price of prime property with average annual sunshine hours and precipitation levels in Gibraltar and 13 competitor and world city locations to create our Sunshine/Spend Index (Figure 4). By this measure, Gibraltar offers the best-priced prime property with the sunniest and driest climate. It ranks ahead of key Caribbean destinations, where climate is comparable but property a third more expensive, and the British Crown Dependencies of Guernsey, Jersey and the Isle of Man, where property is up to double the cost.

FIGURE 4

Sunshine/Spend Index

 
Figure 4

Source: Savills World Research

FIGURE 5

The prime districts of Gibraltar

Prime property is found throughout Gibraltar, but concentrated in newer, waterside developments. Historic property is located in the Town Area, while villas are found almost exclusively in the South District. The Eastside, meanwhile, is emerging as Gibraltar’s next prime area.

 
Figure 5

Source: Savills World Research

placeholder

Key Contacts

Yolande Barnes

Yolande Barnes

Director
World Research

Savills Margaret Street

+44 (0) 20 7409 8899

 

Paul Tostevin

Paul Tostevin

Associate Director
World Research

Savills Margaret Street

+44 (0) 20 7016 3883

 

Subscribe to Savills research

 

Would you like to be notified via email about new property research?