The Chief Officer of Gibraltar has announced the following changes in his 2022 Budget Address which took place on 28th of June.
Tax
The tax rates across all tax bands under the Allowance Based System and the Gross Income Based System are being increased by 2% for two years, after which time they will be lowered again.
Taxable income for Category 2 individuals will now be capped at £118,000 instead of from £105,000 with the maximum amount of tax payable increasing to £44,740.
From the 1st of July 2022, the minimum amount of tax payable in this category will increase from £32,000 to £37,000 annually and new Category 2 applicants will be need to pay tax a year in advance.
A new tax has been introduced for non-Gibraltan nationals who claim residency in Gibraltar but who are not in possession of a Category 2 or HEPSS certificate and are not in true third-party employment. They will be taxed on their full savings income, including pension income, interest income, dividend income and other passive income.
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.
In popular culture, Spain is synonymous with sunshine, Paella, Flamenco and endless golden beaches. All of which paint a familiar, and perhaps slightly old-fashioned view, of the fourth biggest member of the E.U.
Over the years, the trend for South African nationals to seek out new lives and experiences in Portugal has continued to grow and grow; I myself made the move back in 1988 as a fresh-faced economics graduate from Witswatersrand University in Johannesburg, and I’ve never looked back. It’s easy to see the appeal for South Africans – the year-round sunshine and vast expanses of Atlantic coastline are a familiar part of daily life, just as they are back home – but the secure location and easy access to the rest of Europe is something really special. Being as there’s over 11,000 KM of distance between the two countries, a mere 12 hrs by plane give or take, there are going to be some big differences in the way of life, even if there are those obvious similarities. It’s probably advisable for any emigrant to arrive armed with a willingness to accept how things are done in their new home country rather than try to carry on as before and hope for the best. This is never more true than when dealing with your finances.