In 1992, Gibraltar introduced the Qualifying (High Net Worth) Individuals Rules, which provided for reduced rates of tax to be paid by wealthy individuals who became residents of Gibraltar. In 2010 the rules were changed to provide even greater flexibility. Now known as the Qualifying (Category 2) Individuals Rules, an applicant must possess net assets to a value of at least £2 million. Tax applies to first £80,000 of taxable income only, with a minimum amount of annual tax payable set at £22,000. The maximum amount of annual tax payable is £29,880. The individual is required to either purchase or rent an appropriate apartment in Gibraltar and have it available for his or her exclusive use throughout the year. There is no specific legal requirement as regards the length of stay in any particular year and the spouse or children of a Category 2 individual may elect to benefit from the terms of the same certificate. As a general rule, Category 2 individuals are now permitted to invest in or do business in Gibraltar provided that any assessable income is subject to taxation. However, the specifics of the business activities need to be brought to the attention of the Finance Centre Director Prior to application. Sovereign handles the application process in full, together with ancillary services as well as introductions to professional service providers, such as legal, real estate and relocation firms.

In addition the Gibraltar government has introduced a further category of tax residency to encourage the relocation of high earning executives with specialist skills that will promote and sustain economic activity of particular economic value to Gibraltar. The amount a High Executive Possessing Specialist Skills (HEPSS) Individual shall be charged to tax is limited to the first £120,000 of his assessable income, under the Gross Income Based System such that the tax payable from qualifying employment income is capped at £29,940. An employer must satisfy the Finance Centre Director that the appointment of a HEPSS Individual will promote and sustain economic activity of particular economic value to Gibraltar and that he will earn more than £120,000. Conditions on residential accommodation and previous non-residency apply.