Does Gibraltar tax foreign income?

Category 2: tax only on the first ~GBP 118k of income, whatever the total. In one line: Category 2: tax only on the first ~GBP 118k of income · no gains tax.

Can I run an online business from Gibraltar?

Effective tax about 28% with the cheapest legal set-up, which costs about USD 3,000 a year: Category 2 caps tax at ~GBP 44k a year.

Moving to Gibraltar: tax, residence and real costs (2026)

Gibraltar: Category 2: tax only on the first ~GBP 118k of income · no gains tax. The cheapest route to residence is category 2: an approved home + GBP 2 M net worth: USD 2.6 million that stays yours (deposit, investment or funds shown) plus about USD 8,000 in fees, in about 4 months. Living costs about USD 2,400 a month for one person in the main city, and around USD 1,750 on a bare-minimum budget.

Key facts

Tax in one line	Category 2: tax only on the first ~GBP 118k of income · no gains tax
Foreign income	Category 2: tax only on the first ~GBP 118k of income, whatever the total
Gains · dividends	0 · taxed within the cap
Wealth · inheritance tax	none · none
Cheapest residence	Category 2: an approved home + GBP 2 M net worth
Money needed	USD 2.6 million that stays yours (deposit, investment or funds shown) plus about USD 8,000 in fees
Time	about 4 months
Doable yourself?	Mostly; a local fixer for one step helps
Days you must spend there	no minimum stay for Cat 2
Citizenship	-
Online business	28% effective, about USD 3,000 a year to run: Category 2 caps tax at ~GBP 44k a year
Living (one person a month)	main city ~USD 2,400; bare minimum ~USD 1,750; family of four ~USD 5,750
Good for	capped tax; online gaming and fintech licences
Common set-up	Cat 2 + a home

Pros and cons

Pros	Cons
Capped tax, no gains or inheritance tax English law, next to Spain No minimum days for Category 2	Tiny, housing costly Brexit border issues (EU treaty 2025)

Questions

How much does residence in Gibraltar cost?: Category 2: an approved home + GBP 2 M net worth: USD 2.6 million that stays yours (deposit, investment or funds shown) plus about USD 8,000 in fees, about 4 months.
Does Gibraltar tax foreign income?: Category 2: tax only on the first ~GBP 118k of income, whatever the total. In one line: Category 2: tax only on the first ~GBP 118k of income · no gains tax.
What does it cost to live in Gibraltar?: Living costs about USD 2,400 a month for one person in the main city, and around USD 1,750 on a bare-minimum budget (based on livingcost.org, 2026).
Can I run an online business from Gibraltar?: Effective tax about 28% with the cheapest legal set-up, which costs about USD 3,000 a year: Category 2 caps tax at ~GBP 44k a year.
What is the catch in Gibraltar?: Check the current cap amount.

Compare

Monaco: 0% on foreign income · 0% on local income (French citizens excepted)
Andorra: 10% on foreign income (credit for tax paid abroad) · 10% on local income · 10% top
Switzerland (lump-sum taxation): lump-sum: a yearly fixed tax on living costs instead of tax on income (foreign income and gains included)
Italy (flat tax for new residents): EUR 300k a year flat on all foreign income and gains, whatever the amount · 43% on Italian income
Greece (non-dom): EUR 100k a year flat on all foreign income (+EUR 20k per family member) · up to 44% on Greek income
Cyprus (non-dom): 0% on dividends and interest (non-dom, 17 years) · 20-35% on work income · 0% on securities gains
Malta: foreign income: 0% unless brought to Malta (min. tax EUR 5k) · 35% top on Maltese income
Portugal (IFICI): 0% on most foreign income (IFICI, 10 years) · 20% flat on qualifying Portuguese work income · 48% otherwise

Compare all 53 places with your own income and budget →

Sources

https://www.gibraltar.gov.gi
Living costs: based on livingcost.org (estimate), rounded