Gibraltar is considered to be a paradise as far as taxes are concerned and the system provides a real incentive to purchase property and take up residency.
In Gibraltar there is no capital gains tax, wealth tax, inheritance tax, sales tax or value added tax and there are two personal income tax systems to choose between.
Capital Gains tax
As a resident of Gibraltar, you will not pay tax on any growth in the value of your property. This makes ownership of property very attractive because when selling your home your profits will not be taxed.
As there is no wealth tax for residents, Gibraltar is a very attractive place to make your domicile as the value of your assets will not be taxed.
Sales tax and VAT
With no sales tax added to products and services purchased in Gibraltar, the money you earn stretches further as the price does not have VAT added to it.
Personal income tax
There are two personal tax systems to choose from, the Allowances Based System (ABS) and the Gross Income Based System (GIBS). GIBS is more commonly used.
The Commissioner of Income Tax will calculate your tax using the system that is most beneficial for you, irrespective of the system that you choose.
Under GIBS, there are tax bands in which different rates apply depending on your earnings, which are lower notably lower than many other countries.