Category 2 is Gibraltar's well-known high-net-worth individual tax status. It should not be treated as the same thing as an ordinary employee residence route.
This guide gives a simple overview and links to the official Government tax source. Use the free Gibraltar Residency Calculator for a basic route check, but Category 2 should be reviewed with a Gibraltar tax adviser or lawyer.
What is Category 2?
The Gibraltar Income Tax Office describes High Net Worth Individual / Category 2 status individuals as people who hold a certificate issued by Gibraltar Finance.
The official tax-office page says that if someone wants to apply for or get information on obtaining this certificate, they must contact Gibraltar Finance.
Category 2 tax position
The Income Tax Office says a High Net Worth Individual or Category 2 individual can only be taxed under the allowances-based system.
The official page currently states:
| Point | Officially stated figure |
|---|---|
| Gross assessable income cap | £118,000 per annum |
| Minimum annual tax liability | £37,000 |
| Maximum annual tax liability | £42,380 |
These figures are tax-office figures as presently stated on the official page. They should be checked before use because tax rates and rules can change.
Category 2 is not the same as an ordinary salary route
The ordinary residence framework discusses employment, business activity, accommodation, age, tax/social insurance and continued compliance.
Category 2 sits in a different area: high-net-worth individual tax status. A person interested in Category 2 should not rely on a simple employee-style calculator result.
2026 application changes
For new applicants, the Government increased the minimum net-wealth requirement from £2 million to £5 million and the non-refundable application fee from £1,233 to £5,000. Existing Category 2 individuals are grandfathered for the revised net-wealth requirement.
Category 2 status does not provide publicly funded schooling or healthcare. If the status is surrendered or forfeited, it does not provide a continuing right to reside in Gibraltar.
Who should look at Category 2?
Category 2 may be relevant to people who:
- are high-net-worth individuals;
- are considering Gibraltar for tax-residence planning;
- have substantial non-Gibraltar wealth or income;
- want a structured private-client route rather than ordinary employment residence;
- need advice on residence, tax, property and timing together.
What to check before speaking to an adviser
Prepare these facts before contacting a Gibraltar adviser:
- current country of residence;
- citizenship/nationality;
- source and type of income;
- net worth and asset structure;
- whether you intend to buy or rent in Gibraltar;
- whether family members are moving with you;
- whether you need employment or business permissions;
- intended date of arrival;
- previous Gibraltar residence history;
- whether you already hold any Gibraltar documentation.
Property and residence interaction
Category 2 applicants should treat approved Gibraltar accommodation as a core requirement because residence and tax planning depend heavily on facts, timing and evidence.
Category 2 versus HEPSS
Category 2 and HEPSS are different. The official Income Tax Office page says:
- Category 2 / HNWI individuals are taxed only under the allowances-based system;
- HEPSS individuals are taxed only under the Gross Income Based system;
- Category 2 currently has a £118,000 gross assessable income cap;
- HEPSS currently has a £160,000 gross assessable income cap.
See the companion guide: Gibraltar HEPSS Residency.
Use in the calculator
For the Gib Residency checker, Category 2 should be treated as a specialist branch: