the purchase of a property sufficient in size to accommodate the applicant and all his family for residential purposes
the applicant must establish that he is in good health
the applicant must establish that he has adequate financial resources to maintain himself and his family without recourse to public funds 

Overriding factor: purchase of property

It would seem that the overriding factor in the determination of such an application is the purchase of a property.

The property must be situated in Gibraltar, and whilst the granting of the residence permit would not depend on the value of the property purchased, it is likely that the Government will look more favourably on applicants who purchase luxury property rather than a purchaser of low-cost housing.

Ownership of property

Ownership of the property can be either in the name of the applicant or joint applicants, or alternatively, in the name of a company of which the applicant is the 100% beneficial owner and over which he has full and effective control. The purchase of property through a Gibraltar company may have tax and other advantages.

It is not essential that the property be purchased prior to approval of an application. However, in an application, the property to be purchased must be stated and therefore an agreement will need to be entered into between the applicant and the vendor of the property so that on payment of a refundable deposit the property would be reserved for the applicant until the application is considered by the Government. Once the application is approved the applicant, on completion of the purchase of the property, will obtain a permit of residence.

Validity and renewal

The permit will be valid for a specified period and will be renewable where the circumstances, as at the time of application, continue and the minimum criteria for the granting of the permit are complied with.

It must be stressed that the holding of a permit does not automatically entitle a person to claim any social benefit or social security in Gibraltar or citizenship. It does however entitle children of the family to attend local schools and to enjoy such benefits which local residents enjoy. The permit of residency does not require the person to actually live in Gibraltar and the permit will continue in effect for as long as the property is owned by the applicant and subsequent satisfaction of the criteria for renewal. 

Taxation

Unless Qualifying (Category 2) Individual status is applied for, the applicant may be liable for taxation on his worldwide income if he resides in Gibraltar for more than 183 days a year.

Qualifying (Category 2) Individuals

The Government of Gibraltar introduced low tax limits in order to encourage wealthy individuals to establish a residence in Gibraltar. Such individuals known as Qualifying (Category Two) Individuals will pay tax on the first £60,000 of assessable income only with a minimum tax payable per annum of £18,000 and a maximum of approximately £22,000.

Application to Finance Centre Director

An application is made to the Finance Centre Director for the issue of a certificate under the Qualifying (Category 2) Individual Rules under the Income Tax Ordinance. A £1,000 non-refundable application fee is payable and the application must be supported by two character references from recognised and established professionals (one must be from a bank and the other from a law or accountancy firm), a copy of his or her passport and a curriculum vitae.

Property in Gibraltar

In order for an individual to qualify as Qualifying (Category 2) Individual he must have approved residential accommodation available for his exclusive use in Gibraltar throughout the year.

Evidence of wealth

The Government would also be looking to ensure that a Qualifying (Category 2) Individual has sufficient means to maintain himself and his family. They will therefore be looking for evidence of wealth although it is not necessary for the individual to declare his worldwide wealth or earnings. The Government would also be looking to ensure that the individual has private medical insurance to cover both him and his family whilst residing in Gibraltar.

No capital gains tax or estate duty

It is also worth noting that there is no capital gains tax or estate duty in Gibraltar.