Discussion in 'Taxes and Accounting' started by luisHK, Apr 8, 2018.

  1. luisHK



    We had some thread about Gibraltar a few years back and some posters here were Gibraltar residents - H2O, are you still around ?
    I've been there around 6 yhears ago and found the place a little claustrophobic, but am missing Europe dearly with 2 kids in english speaking schools. We might actually need to move out of here earlier tha expected. Besides I speak spanish and have a bunch of family in Spain, which is a plus.
    Not many places in Europe with little taxes on income from active trading. Monaco doesn't work well for french passport holders (some of us in the family hold one), I could deal with Bulgaria 10% tax, but suspect it won't be much more fun than in Asia. I could also deal with many taxation systems in Europe on passive investment income but it doesn't look too smart right now to move completely to passive income.

    So, for those who know, if one derive all their income from capital gains and dividends, is it worth applying for the category 2 residence permit ? Or as a EU passport holder is it as good without it ?
    There are no cap gains in Gibraltar but not sure what happens if one's main income come from cap gains.
    If going for the cat 2 visa, 2 reference letters are required, including one from a banker attesting one have a net worth over 2mil GBP.
    Of the 2 places I keep that kind of funds, one didn't issue that kind of letter when I asked for it on a different occasion, the other is Interactive Brokers.
    Can IB provide such a letter ?
    I could also consolidate accounts and wire 2 mil gbp to a bank keener on issuing this reference letter.

    Also, in case anyone wan share some experience, how easy is it to fill the formalities so the kids can enter a local schools- last time I checked there was a single private school in Gibraltar, but as public schools are also in english they might work fine as well.

    Thanks for all input
  2. henry76


    I'm not suggesting you live there but ,
    "The Isle of Man does not have any capital gains tax, wealth tax or inheritance tax. Income tax is levied at a rate of 10% on the first £10,500 of taxable income and 20% on the rest. Individuals receive a £9,300 personal allowance."
    Property is cheapish , perhaps you could buy a "holiday" property and live in Spain ,plenty of banks and flights from London.
  3. luisHK


    Thanks Henry, actually i'm looking for a place where to live physically, sending kids to school, not only a tax residency.
    Fwiw the claustrophobic aspect of Gibraltar almost looks like a plus now, with the wife still keen on deserting the household and leaving me alone with the kids when she feels down. It would be easier to manage in a small place like Gibraltar (or Isle of man, possibly).
    Besides there is a hundred plus pages long thread here discussing various places and their taxes advantages, I'd rather this thread stick to Gibraltar, although I'll definitely read all input in the tax related thread below :
  4. luisHK


    Property prices are actually decent in Gibraltar, but for cat 2 visas only a few properties are eligible, I'd appreciate if anyone could chime in with more knowledge on whether traders trading their own funds can just enjoy the tax free capital gains without going the cat 2 way.
    Scouring the net net right now looking for more info. Better be sure ahead of moving as one must apply for cat 2 status before becoming legal resident in Gib it seems.
  5. henry76


    I thought you could only apply for low tax status ( is that cat 2) if you havn't been residing in Gibraltar before hand?
  6. henry76


  7. luisHK


    Yes, that's my understanding as well, you must have not been a Gib resident for a specific period beforehand.
    hence better be sure in advance, if I fly there and register as a regular immigrant tax wise, it doesn't seem possible to switch to cat 2.
    Finding some links hinting cat 2 is not required for traders, like the one below, but will check further.

    "It seems that Gibraltar would be the best option.
    Here is the official information from the inland revenue department:

    Is trading (FOREX) and earned interest tax exempt or are the regular personal income tax brackets applied?

    As a general principle, I can confirm that passive income earned by a person is not taxable under the Act unless it is a trading receipt from a licensed banking/money lending activity.

    As a general principle, I can also confirm that income from FOREX trading is not taxable if it is earned on an “own account” basis only and provided that it is not a trade activity carried on behalf of others which is taxable."

    I trade stocks rather than forex, but suspect it works the same. Talking about significant average income though, getting hit with income tax on trading gains would hurt.
  8. luisHK


  9. henry76


    Well good luck , of course there is also Andorra and the channel islands amongst others,I'm not sure I'd want to live in Gibraltar , plus with Brexit perhaps not 100% stable , especially in terms of tax haven.
  10. luisHK


    Just found this from H2O, who is/was a resident in Gib, it seems it's not a good idea to just follow a regular tax declaration if one is a professional trader :

    Quote from H2O:

    A residence permit depends on your financial and/or employment situation, but as you said, as EU citizen it shouldn't be a problem.
    Tax filing again depends on your financial and/or employment situation (sorry I cannot be more specific) - Gibraltar has several options, including at least one specifically for professional traders.
    If you are a professional trader (trading is your main source of income) Gibraltar will also see (part of) this income as income tax. If your trading activities are carried out in a personal account and are not your main income source, Gibraltar doesn't tax (No capital gains tax in Gib)
    #10     Apr 8, 2018