Gibraltar announces new Residence criteria prior to imminent provisional application of UK-EU Treaty

The government of Gibraltar announced, on 17 June 2026, revised rules for people applying for residency in Gibraltar to ensure that long-term residence rights are granted to applicants that make a genuine economic contribution and have a durable connection to Gibraltar.

The new rules will only apply to people seeking residence in Gibraltar after 6 October 2025 and will not affect existing holders (i.e. pre 6 October 2025) of Gibraltar civilian registration cards or identity cards.

It has also announced raising the fees and minimum net wealth requirement for new applicants under the Qualifying (Category 2) Individuals Rules 2004 for high-net-worth individuals.

These changes come in response to a sustained growth in demand for residency in Gibraltar in anticipation of the agreement between the UK and the European Union in respect of Gibraltar, which was published in February 2026 and is due to come into force on 15 July 2026.

This Agreement establishes a new system for the movement of persons, designed to remove all routine immigration checks and physical barriers at Gibraltar’s land border with Spain while maintaining stability and security across Gibraltar and the Schengen Area.

Gibraltar will remain outside both Schengen and the EU, but Schengen border rules will apply at its external border under a tailored arrangement between the UK and EU. Gibraltar residents can stay in any Schengen EU member state for up to 90 days in any 180 without requiring a visa. EU citizens and third country EU residents can stay in Gibraltar for up to 90 days in any 180 without requiring a visa.

Gibraltar has typically received an average of around 1,000 residency applications per year, but this rose to more than 3,000 between 2022 and 2024. When agreement between the UK and the EU was announced in June 2025, applications almost tripled.

In response, the government of Gibraltar established a new Immigration Criteria Consultation Committee to revise the residency framework, and, on 6 October, it suspended all new residency applications from UK and EEA nationals with immediate effect.

Residency – Qualifying Periods and Parentage

On 30 October 2025, the government published the Gibraltarian Status & Immigration (Amendment) Bill 2025, which makes significant changes to qualifying periods for Gibraltarian residency. The Bill provides that:

• The qualifying period for Permanent Residency status is increased from five years to 10 years.
• The qualifying period for Gibraltarian status via long residence is increased from 10 years to 20 years and is also made subject to ministerial discretion.
• To qualify for Gibraltarian status via parentage, an applicant is required to have a parent who is already a registered Gibraltarian. Previously, some applicants could qualify via a grandparent who was entitled to register but had not done so.

The publication of the revised criteria that will govern applications for residence in Gibraltar completes the government’s residency reform programme.

Residence Permit for Employees

Anyone applying for a new Residence Permit in Gibraltar must accompany the application with an employment contract under which:

• The minimum salary must be the equivalent of the average gross annual earnings in Gibraltar, currently £37,500 but which will be updated annually.
• The employer is a business that has been trading in or from Gibraltar for at least a year, is fully registered and licensed in Gibraltar, and is up to date with all payments and filings.

Applicants must also provide evidence of the rental or purchase of a property in Gibraltar. A purchased property must be legitimately available for the applicant’s exclusive use during the duration of the residence permit and cannot be let. A rental property must be for use as the applicant’s primary residence and the lease must not be for less than 12 months or for a holiday rental. No future applications will be accepted from individuals living on marine vessels.

Applicants must further provide proof that they are 55 years old or under, subject to ministerial discretion, and provide an official vetting form from their country of origin.

For applicants under 30 years of age, the minimum salary requirement can be waived if the employer pays the tax and social insurance contributions equivalent to the minimum salary threshold in Gibraltar for every year until the salary threshold is reached.

Any individual applying for residence can be accompanied only by a spouse and children. For a spouse, the applicant is required to pay an amount equivalent to the maximum employee’s Social Insurance contribution on behalf of the spouse.

New Businesses and Self-Employed Individuals

The framework provides some flexibility. For a business that has traded for less than 12 months or where an individual is registering as self-employed for the first time, an advanced payment in the form of a deposit will be required equivalent to the following:

• Total employee and employer social insurance contribution for the first year of employment, and
• Total tax payable on the equivalent of the minimum salary threshold, taxable at 25%.

This deposit will be returned upon the cessation of business and the Minister for Business has discretion to waive the full amount due, in certain, defined circumstances.

Business Registration Requirements

For a business to be fully registered under the Business, Trades and Professions (Registration) Act and licensed under the Fair Trading Act, the Department of Business can assess factors that may include, but are not limited to:

• The creation of full time or part time employment in Gibraltar.
• The provision of in-demand skills required in the jurisdiction.
• The rental of suitable office or commercial space in Gibraltar.
• A positive tax filing history of the applicant.
• The future generation of economic activity in Gibraltar by the applicant.

Anti-Avoidance Measures

Any variations to a contract that reduce the amount paid to the employee will be automatically flagged to ensure that the minimum salary conditions under which the permit was issued continue to be met.

The government will also implement a mechanism to ensure businesses are up to date with all payments and filings, including tax liabilities, social insurance contributions, licensing fees, registration fees and any other regulatory payments.

Residence Permit Renewal

Residence permits will be subject to annual renewal, with a requirement for confirmation that all conditions continue to be met. Any failure to disclose accurate and complete information, or failure to notify any material change in circumstances, may result in the renewal being refused or the permit being suspended or revoked.

The residence permit will automatically lapse if tax or social insurance payments cease for the individual, unless the employee can produce evidence that payments have been deducted from their salary but have not been paid on by the employer.

All permits will automatically lapse eight weeks after a Notice of Termination of Terms of Engagement is filed with the Department of Employment, unless the Director of Immigration and Home Affairs is satisfied that the individual has a new employment contract.

Benefits for Residence

The benefits attaching to residence have been restricted. They cover the Group Practice Medical Scheme (GPMS) for the holder, spouse and any children under 18 or in tertiary education, but expressly do not extend to an applicant’s parents. Children under 18 are also entitled to schooling in Gibraltar and a scholarship becomes available for a dependent child after 10 years of continuous lawful residence and uninterrupted payment of tax and social insurance in Gibraltar.

Other social benefits, such as entitlement to elderly residential care, domiciliary care, public and affordable housing or berthing rights only become available to those who qualify for Gibraltarian status as British citizens who have completed 20 years of residence.

An unmarried partner of a person holding Gibraltarian status will be required to evidence a durable relationship of at least two years.

Students at the University of Gibraltar are entitled to the benefits arising from residence for the duration of their studies provided the GPMS contribution is paid, with the same entitlement and contribution extending to a spouse and children under 18.

Application Fees and Penalties

The application fee for Residence will be raised to £250. Renewal fees will be set at £100. Residing in Gibraltar without a Permit of Residence can attract a fine of up to £2,500.

The Gibraltar government said: “The proposed criteria for individuals looking to apply for Residence in Gibraltar is intended to ensure that residence in Gibraltar is grounded in genuine economic contribution, compliance with all applicable legislation and the protection and sustainability of public services.

“The policy maintains Gibraltar’s openness to talent and enterprise while introducing clear, fair, and transparent requirements relating to employment, business activity, accommodation, and ongoing contribution through tax and social insurance. Proportionate safeguards and anti-avoidance measures are included to protect the integrity of the system.”

Changes to Qualifying (Category 2) Individuals Rules for high-net-worth individuals

To reflect Gibraltar’s premium positioning in advance of the UK-EU Treaty and to ensure that Gibraltar continues to attract individuals who are well-placed to make a meaningful and sustained contribution to the economy and wider community, the government is also significantly increasing the entry criteria under the Category 2 regime.

Category 2 status is designed for high-net-worth individuals who wish to reside in Gibraltar under a clearly defined framework and is awarded on the decision of the Finance Centre Director.

Under the Category 2 rules, individuals are generally subject to a cap on their Gibraltar tax liability with income tax payable only on the first £118,000 of assessable annual taxable income (2025/2026 rates), subject to a minimum annual tax liability of £37,000. This gives rise to a maximum annual Category 2 tax liability of £42,380 (2025/2026 rates). Assessable income does not include capital gains, gifts or many types of investment income.

Under the changes announced by the Gibraltar government on 18 June 2026, the application fee will increase from £1,233 to £5,000 and the minimum net wealth requirement for new applicants will increase from £2 million to £5 million. This increase in the Category 2 net wealth requirement is long awaited and keeps Gibraltar competitive against other jurisdictions.

The new rules also confirm that Category 2 status carries no entitlement to publicly funded schooling or healthcare, and that a person who does not maintain their Category 2 status has no right to remain resident in Gibraltar.

“We are seeing strong interest in Category 2 status following the Treaty announcement, which reflects growing confidence in Gibraltar’s future. At the same time, it is important that the regime remains aligned with Gibraltar’s broader economic objectives and the opportunities arising from the Treaty,” said Minister for Justice, Trade & Industry Nigel Feetham.

The relevant new residency legislation should be issued shortly.