HEPSS tax residency - (High Executive Possessing Specialist Skills) The Government introduced HEPSS (High Executive Possessing Specialist Skills) to attract executives with specialist skills to Gibraltar deemed to be vital for the business to prosper. This tax residency status is aimed at individuals with specialist skills, who come to work and live in Gibraltar. These individuals must earn more than £120,000 per annum. The individual must possess specialist skills or have experience that are not generally available in Gibraltar and which will promote and sustain activity that is considered of economic value to Gibraltar. The rules for this form of residency can be summarised as follows:
Applicants must possess skills not already present in Gibraltar, their coming to Gibraltar must also help promote and sustain economic activity in Gibraltar. Applicants must earn more than £120,000. Applicants cannot have been resident in Gibraltar for the three years immediately preceding the application. HEPSS individuals must live in a Gibraltar qualifying property (similar to those of Category 2 residents). A non refundable application fee of £1,000 is payable at the time of submission of the applicat ion. Successful applicants will receive a certificate confirming the status but importantly it is not transferable. Taxation is charged following the Gross Income Based System (GIBS) only. The advantage of this form of tax residency is that taxation is lim ited to the first £120,000 of assessable income. This equates to a maximum tax payable of £29,940 (an effective rate of 24.95%). The capping of tax is calculated as follows:
Capped income
Income
Tax rate
Tax
£
%
£
17,000
16
2,720
8,000
19
1,520
15,000
25
3,750
65,000
28
18,200
15,000
25
3,750
120,000
Total tax
29,940
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