Gibraltar Raises Wealth Threshold for High-Net-Worth Visa Applicants

Gibraltar is implementing stricter residency requirements for wealthy individuals, aiming to ensure they make a substantial economic contribution to the territory. The net wealth needed to qualify for a Category Two visa, which grants residency to high-net-worth individuals, will increase from £2 million to £5 million. The application fee for this special status will also rise from £1,233 to £5,000.

These changes, set to take effect on July 15, coincide with the official enforcement of the UK-EU treaty concerning Gibraltar's economic future. This treaty will integrate Gibraltar into the Schengen area, eliminating border restrictions with Spain. Existing Category Two certificate holders will not be affected by the new wealth threshold.

Gibraltar has historically been an appealing destination for affluent individuals due to its low personal taxation rates, with no inheritance or capital gains taxes. Holders of a Category Two visa are taxed on only the first £118,000 of their income, capping their annual tax liability at £37,000. However, the increased wealth requirement is expected to significantly narrow the pool of potential applicants, according to Paul Correa, managing director of expat specialist Fiduciary Wealth Management.

In addition to the wealth requirement, the qualifying residency period for Gibraltarian Status, which confers full residency rights, will be extended from 10 years to 20 years for new residents. This adjustment follows a surge in residency applications, which rose from an annual average of approximately 1,000 to over 3,000 between 2022 and 2024. Following the announcement of the UK-EU agreement in June 2025, applications nearly tripled, leading to a temporary suspension of new residency applications from UK and EEA nationals.

Other residency pathways have also become more restrictive. The traditional self-sufficiency residency route, previously accessible to British nationals receiving a UK state pension by transferring their healthcare entitlement, has been effectively closed. Consequently, obtaining residency in Gibraltar now predominantly relies on securing qualifying employment or demonstrating genuine business activity.

Correa noted that while Gibraltar remains competitive compared to jurisdictions like Greece or Italy, which also offer favorable tax regimes, the scale of the increase in the net worth requirement is difficult to justify. He suggested that a more gradual increase, informed by broader private sector consultation and a comprehensive economic impact assessment, would have provided a stronger basis for such a significant policy change.