Tax Relief

There are two tax systems in Gibraltar:

Allowance Based System

The Allowance Based System (ABS) of taxation enables individuals to claim allowances against their gross income, and pay tax on their net income.

Tax relief is available on personal contributions which, together with contributions to any other approved Gibraltar pension arrangement and premiums to any qualifying life assurance policies do not exceed, in total, one sixth of your assessable income.

Assessable income means all income chargeable to tax in Gibraltar, including employment and trade income, and unearned sources of income such as dividends and rental income.

Gross Income Based System

The alternative Gross Income Based System (GIBS) of taxation requires you to pay tax on your gross income at a lower rate than under the ABS.

If you are taxed under the Gross Income Based System, tax relief up to £1,500 per annum is available for the current tax year.

Important

It is important to note that allowances and rates may vary depending on the tax year.
If you are not sure which system you are taxed under, contact your HR Department for confirmation.
Employer contributions are not included as taxable income for employees and will not result in any additional tax charges in Gibraltar.

For the purposes of your tax status and The Criminal Finance Act 2017, the Trustee strongly recommends that you seek tax advice prior to making any decisions regarding your financial arrangements. You must advise the Administrator of any change to your tax residency and/or domicile within a reasonable period and be and remain tax compliant.