scubagamer

Hello,

I'm planning to move to Gibraltar, as a recruitment company seems interested by my CV.

I had plenty of informations from this board ( thanks to the contributors) but can't find any precise information about the taxes rate.

I've been said that there are no income/taxes in Gibraltar on salaries, is it true ? So you gross salary is what you get in the pocket ?

If no, what would the rate for a salary of 24k £ ?

What about the VAT ?

Is it true that if you work in Gib and live in Spain you have to pay taxes in both countries ?

What should I take care concerning this matter i f I decide to move ?

Mitzyboy

I moved you to the Spanish Section as you will probably get more response here

Fredbargate

Unfortunately I cannot get a direct link to work so
Go to:-

http://www.gibraltar.gov.gi/

Then click Government and Public Services

Then near bottom left Taxation

Then Computation of Taxable Income

Fred James

Yes, there is income tax in Gibraltar

http://www.gibraltar.gov.gi/gov_dept..._July_2006.pdf

If you live in Spain you will have to pay Spanish income tax on your worldwide income. You will also be taxed at source in Gib but you can deduct any tax paid in Gib from your Spanish tax bill.

There is no VAT in Gib.

ballin

There are two methods of tax, gross and some allowance rate.

Most people are on gross, unless they live in Gib with kids/mortgage etc to make the other worthwhile.

Gross tax is iirc 20% on first £25k, 29% up to £100k and 40% above

Fredbargate

Unfortunately this links to 2006 which is no longer valid

My earlier post is the up to date tax information.

Fred James

Well spotted Fred. It appears that the tax has actually gone down slightly!

Back to the question of how much tax on £24k, for a single person it would be £6386 according to those tables.

That is significantly higher than the income tax in Spain which would be €5336 so that would mean that, after deductions for the foreign tax paid, there would be no tax due in Spain. That said, it would still be necessary to submit a zero declaration in Spain.

Fredbargate

Gibraltar / Spain do not have reciprocal tax agreements.

As Ballin posted there is also a gross tax scheme

Individuals with gross assessable income between £16,001 and £25,000;

* income of £16,001 to £17,000, on the first £5,000 - 0%
balance - 20%
* income of £17,001 to £18,000, on the first £4,000 - 0%
balance - 20%
* income of £18,001 to £19,000, on the first £3,000 - 0%
balance - 20%
* income of £19,001 to £20,000, on the first £2,000 - 0%
balance - 20%
* income of £20,001 to £25,000, on the first £1,000 - 0%
balance - 20%

If my maths are correct then someone earning £24K would pay £4600

However when this scheme first came out the Tax office stated that all taxpayers would be moved to the scheme that was most favourable to their circumstances regardless of their original choice

Fred James

Spain does not have a Double Taxation Agreement with Gib but, as far as I am aware, that does not necessarily preclude you from deducting income tax that has been paid in another country. There is a specific box for it on the tax form (Box 734) and I can find no reference in the manual as to this being limited to income from a country with a DTA.

This is a general concession that applies between most countries, irrespective of specific agreements which are usually in place to cover more specific double tax situations (an example being the taxation of Government pensions).

Based on the lower tax figure you have calculated, that is almost the same as the Spanish tax (depending on the exchange rate) so there should still be no Spanish tax to pay.