Gibraltar continues to be one of Europe’s most attractive jurisdictions for high-net-worth individuals (HNWIs) seeking tax efficiency, lifestyle benefits, and British legal certainty within a Mediterranean setting. Through the Category 2 (CAT2) residency regime, individuals can legally reside in Gibraltar while benefiting from a low-tax environment that excludes worldwide income from taxation.
At Blacktower Financial Management, we help international clients navigate the residency and financial planning process with confidence. Here’s what you need to know about Gibraltar’s CAT2 programme in 2025.
What is Category 2 (CAT2) Residency?
Gibraltar’s Category 2 residency is a specialist tax status available to individuals of substantial net worth. It enables eligible applicants to benefit from a fixed and capped income tax liability while maintaining international income streams without local taxation.
This makes it particularly attractive for international investors, entrepreneurs, digital nomads, and retirees looking for a safe, stable and tax-efficient base in Europe.
Key Tax Advantages:
- Only the first £118,000 of income is taxable
- Maximum annual tax payable: £44,740
- Minimum annual tax: £37,000
- No tax on foreign income, interest, dividends, or capital gains
- No inheritance, wealth or gift taxes
- Straightforward reporting and compliance
CAT2 residents are not taxed on any income earned or received outside Gibraltar. This regime is often used as a core part of broader international tax planning and succession strategies.
Who Qualifies for Category 2?
To be considered for CAT2 residency, applicants must meet several criteria designed to ensure that the regime is reserved for globally mobile HNWIs.
| Requirement | Details |
| Net Worth | Personal wealth of £2 million+, provable through documentation |
| Accommodation | Must lease or purchase approved residential property for exclusive use |
| Non-residency | Must not have been resident in Gibraltar during the previous five years |
| Good Character | Subject to due diligence and references |
| Physical Presence | Minimum of 30 days per calendar year in Gibraltar |
There are no nationality restrictions, and both UK and EU nationals can apply without visa limitations.
Step-by-Step Guide: How to Apply for CAT2 Residency
With the right support, your CAT2 residency can be structured and approved in as little as 6–8 weeks. Blacktower can guide you through each step.
1. Initial Consultation
Begin by discussing your financial position, lifestyle goals, and eligibility with one of Blacktower’s Gibraltar-based advisers. We will provide personalised guidance based on your global assets, tax exposure, and future plans.
2. Secure a Qualifying Property
CAT2 applicants must have exclusive use of qualifying property—either rented or purchased. Properties in the following areas are popular among our clients:
- Ocean Village
- South District
- Upper Town
- Marina Bay
Blacktower works with trusted real estate professionals to help you find suitable accommodation that meets CAT2 standards.
3. Submit Your Application
Blacktower can put you in touch with trusted, local specialists who will help you with your application:
- Completed CAT2 application form
- Proof of identity (e.g. passport)
- Lease or title deed for Gibraltar property
- Proof of wealth (e.g. bank statements or investment portfolio)
- Professional references
- Evidence of non-residency over the last 5 years
- Police clearance (if applicable)
4. Receive Your CAT2 Certificate
Once approved, you will be issued a Certificate of Category 2 Individual Status. You’ll also be registered for income tax and required to file an annual return, showing the capped tax payment.
Living in Gibraltar as a CAT2 Resident
Though only 30 days of presence per year are required, many CAT2 residents spend more time in Gibraltar to enjoy its advantages:
- English-speaking population and legal system
- Easy access to Spain, Portugal, and Southern Europe
- Efficient healthcare and clean environment
- Strong private banking and financial services
- Mild Mediterranean climate and safe communities
Whether you maintain a global lifestyle or spend extended periods in Gibraltar, the CAT2 framework offers maximum flexibility with minimal bureaucracy.
Maintaining CAT2 Status
Your CAT2 residency is renewed annually. Ongoing compliance includes:
- Maintaining your Gibraltar property
- Maintaining minimum net worth of £2 million
- Filing annual income tax return with capped contribution
- Spending at least 30 days in Gibraltar annually
As part of Blacktower’s ongoing service, we ensure continued compliance and monitor your position as part of your broader wealth strategy.
Why Work with Blacktower?
Founded in 1986, Blacktower Financial Management has a long-standing presence in Gibraltar and have helped many families with cross-border financial planning.
As a fully regulated and experienced wealth management firm, we provide peace of mind throughout your relocation journey and beyond.
Summary: CAT2 Residency At a Glance
| Feature | Details |
| Taxable Income | First £118,000 only |
| Max Tax Payable | £44,740/year |
| Foreign Income Taxed? | ❌ No |
| Capital Gains Taxed? | ❌ No |
| Minimum Presence | 30 days/year |
| Net Worth Requirement | £2 million+ |
| Employment Required | ❌ No |
| Approval Time | ~6–8 weeks |
Ready to Relocate to Gibraltar?
At Blacktower, we help you optimise your financial future.
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Start your Gibraltar CAT2 journey today with confidence and clarity.
Frequently Asked Questions
Q: How long does it take to get CAT2 residency?
A: With complete documentation and expert assistance, approval usually takes 6–8 weeks but is dependent on individual circumstances.
Q: Do I need to buy a property in Gibraltar?
A: Not necessarily. Renting a qualifying property for exclusive use is acceptable.
Q: Is my foreign income taxed under CAT2?
A: No. Only Gibraltar-source income up to £118,000 is taxable.
Q: Can I work in Gibraltar under CAT2?
A: Generally, CAT2 is not suitable for full-time local employment, though you can manage overseas businesses.Q: Can my family move with me?
A: Yes, though they must also meet accommodation and presence requirements
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
If you are resident in Spain (if you live here more than 183 days in a calendar year, the Spanish tax authorities and in turn the UK HMRC will class you as Spanish resident) and held assets outside Spain as at 29 December 2017 worth over Euro 50,000, and you haven’t already declared them on a Modelo 720, you need to so by the end of March.