Living in Gibraltar: the ultimate expat guide

Gibraltar operates its own immigration system, separate from both the UK and the Schengen Area. Entry requirements vary significantly based on nationality. A landmark border agreement signed in June 2025 established an open border with Spain and joint passport controls at Gibraltar International Airport, streamlining cross-border movement.

British Citizens

UK nationals enjoy straightforward access to Gibraltar. No visa is required for entry, study, or employment. Your passport simply needs to remain valid for the duration of your stay. This arrangement makes Gibraltar particularly attractive for British professionals seeking a Mediterranean lifestyle while remaining under British jurisdiction.

EU Citizens

European Union citizens can enter Gibraltar using their European Health Insurance Card (EHIC) for healthcare coverage. However, accessing public services may require additional procedures. The Immigration (EU Exit) Regulations 2025 introduced temporary measures to strengthen residence system integrity, with ongoing verification of red identity card holders.

Other Nationalities

Generally, individuals requiring a UK visa also need a separate visa for Gibraltar. Check specific requirements for your nationality before planning your relocation. Gibraltar is not part of the Schengen Area, so a Schengen visa does not grant entry.

Residence Permit Process

For long-term settlement, contact the Department of Immigration & Home Affairs. Each application is reviewed individually. Prepare documentation including a valid passport, proof of financial means, employment contract or business activity evidence, and accommodation verification.

Contact: visas.diha@gibraltar.gov.gi - Tel: +350 200 76945

The Gibraltar government website provides detailed immigration information.

2025 Border Agreement

The June 2025 agreement between Spain, the UK, and Gibraltar represents a major development for expats. It establishes an open border and joint passport controls at the airport, significantly facilitating daily movement between Gibraltar and Spain. This particularly benefits the thousands of cross-border workers who reside in Spain while working in Gibraltar.

Gibraltar's labor market operates with an exceptionally low unemployment rate of approximately 1%, creating strong opportunities for skilled professionals. With roughly 30,000 workers split 80% private sector and 20% public sector, Gibraltar offers competitive positions across several key industries.

Salaries and Compensation

The median salary ranges from £35,000 to £36,500 annually, though gender disparities exist: £44,300 for men versus £35,600 for women. The public sector pays approximately 24% more than private employers. The minimum wage stands at £8.10 per hour, while overall salary ranges span from £11,900 to £182,400 annually depending on role and qualifications.

For professionals in high-demand sectors, here's a snapshot of 2025 compensation packages to help gauge earning potential.

Sources: World Salaries, PayScale

Key Growth Sectors

Financial services dominate Gibraltar's economy with highly competitive compensation packages. The online gaming industry contributes over 25% of GDP and actively recruits technical talent. Maritime and bunkering operations remain strategic, delivering 3.4 million tonnes in 2022. Tourism generates employment with nearly 5 million annual visitors.

The technology sector is experiencing rapid growth with strong demand for software development, cybersecurity, and cloud computing skills. Defense and MOD still contribute approximately 6-7% of GDP, though this has declined significantly from 60% in 1984.

Starting a Business

Gibraltar offers an entrepreneur-friendly environment with a corporate tax rate of 15% since July 1, 2024 (increased from 12.5%). A special 20% rate applies to energy utilities and companies in dominant market positions. Common business structures include limited liability companies (most popular), sole proprietorships, and partnerships.

Companies in regulated sectors (finance, insurance, intellectual property, maritime) must demonstrate genuine economic substance in Gibraltar. This requirement ensures businesses maintain real operations rather than serving as shell entities.

Gibraltar operates a territorial tax system that ranks among the world's most attractive for high-net-worth individuals and businesses. The tax year runs from July 1 to June 30. The territory has no VAT, no capital gains tax, no inheritance tax, no wealth tax, and no gift tax. Companies are taxed only on income generated in or from Gibraltar, while ordinary residents face taxation on worldwide income.

Personal Income Tax Systems

Gibraltar offers two tax calculation methods: the Allowance Based System (ABS) and the Gross Income Based System (GIBS). Under ABS, progressive rates apply to taxable income: the first £4,000 is taxed at 14%, £4,001 to £16,000 at 17%, and amounts exceeding £16,000 at 39%. Total exemption applies if your taxable income doesn't exceed £11,450, with progressive relief between £11,451 and £19,500.

GIBS operates differently based on income levels. For income up to £25,000, rates are: 6% on the first £10,000, 20% from £10,001 to £17,000, and 28% from £17,001 to £25,000. For income exceeding £25,000, the effective maximum rate reaches 26.25% on £100,000 through a complex formula with annual 0.5% reductions.

Special Tax Status Options

The Category 2 Individual status provides tax capping for high-income earners. Tax is capped on the first £118,000 of income with a maximum liability of £44,740 annually. Foreign-source income remains untaxed. Requirements include minimum 30 days annual residence in Gibraltar and approved accommodation.

The HEPSS (High Executive Possessing Specialist Skills) status targets highly qualified executives with a minimum salary requirement of £160,000. Tax is fixed at £43,440 annually (2024 rate). This status is reserved for professionals with skills of exceptional economic value to Gibraltar.

Social Security Contributions

Since July 1, 2024, employees contribute 10% of salary (capped) while employers pay 20% (also capped). The contribution ceiling increased by 5% in July 2025. Students enjoy exemption on income not exceeding £11,450.

Available Deductions and Allowances

Private health insurance is deductible up to £5,395. Mortgage interest on loans up to £300,000 for primary residence qualifies for deduction. Life insurance offers limited deduction at 17% for policies taken after June 2008.

Working retirees aged 60+ receive a tax credit of £4,000. Seniors (65+ for men, 60+ for women) can claim additional personal allowances of £9,055 (single) or £5,600 (married).

Corporate Taxation

The corporate tax rate increased to 15% from July 1, 2024. A special 20% rate applies to companies in dominant market positions and energy utilities. Gibraltar imposes no withholding tax on dividends, interest, or royalties paid abroad, facilitating international transactions.

Under the OECD's Pillar Two framework, Gibraltar is implementing a Qualified Domestic Minimum Top-up Tax (QDMTT) and an Income Inclusion Rule (IIR) scheduled for 2025. These measures apply to multinational groups with revenues exceeding €750 million.

Tax Treaties

Gibraltar maintains double taxation agreements with the United Kingdom and Spain. The Gibraltar Income Tax Office provides detailed information on tax obligations. US citizens should note that Gibraltar does not have a tax treaty with the United States, and FATCA reporting requirements still apply.

Recent Tax Changes 2024-2025

Since January 1, 2025, new taxation on residential property applies. It affects ownership of 5 or more properties (increased from 3). Properties built before and held since January 1, 1988, are exempt. Disposal profits are treated as operating income when conditions are met.

For financial services and gaming sectors, limitation on utilizing accumulated tax losses (exceeding £2.1 billion) took effect July 1, 2024. The mandatory audit threshold increased to £1.75 million in taxable annual income.

Gibraltar operates a quality public healthcare system modeled on the UK's NHS, providing free or heavily subsidized care to eligible residents. Approximately 12% of GDP goes toward healthcare, with the Gibraltar Health Authority (GHA) managing an annual budget of roughly £100 million to serve 30,000 residents. Care quality matches Western European standards with the significant advantage of very short waiting lists.

Accessing Public Healthcare

The Group Practice Medical Scheme (GPMS) is a contributory system providing access to free or subsidized care. To register, your social security contributions must be current, and you need a tax number. British citizens receive free care upon presentation of a valid British passport. EU citizens can use their European Health Insurance Card, though access may sometimes be limited.

Medical Facilities and Infrastructure

St. Bernard's Hospital serves as the main facility with 212 beds, offering emergency services, maternity, pediatrics, surgery, intensive care, radiology, and pathology. It includes two elderly care services managed by the Care Agency. The Primary Care Centre employs approximately 20 general practitioners handling nearly 90,000 consultations annually.

For mental health, Ocean Views opened in 2017 with 52 beds and a community mental health service. A day center for dementia care accommodates up to 90 daily patients.

Quality and Waiting Times

Gibraltar's healthcare system performs impressively. Average surgery wait times dropped from 23 weeks in 2022 to just 9 weeks in 2025. Orthopedic procedures improved from 40-week waits to 7 weeks. These timeframes significantly outperform international standards.

Recent additions include a catheterization laboratory and an oncology service scheduled to open by late November 2025. These continuous improvements demonstrate the territory's commitment to healthcare modernization.

Booking Appointments

The MyGHA system facilitates appointment booking. Call the automated telephone line at 2000 7007 for next-day appointments (available from 6 PM). For same-day appointments, dial 2005 2441 from 8:15 AM. An evening clinic operates 4:30 PM-7:00 PM at the same number. Weekend appointments are available on a same-day basis.

Specialist and Tertiary Care

For highly specialized care unavailable locally, Gibraltar maintains agreements with UK and Spanish hospitals. Visiting consultants from the UK regularly provide services in specialties like pediatric neurology, plastic surgery, and cardiothoracic surgery. This arrangement ensures comprehensive medical care despite the territory's small size.

Private Health Insurance

While the public system performs well, private health insurance offers several advantages: faster access to certain treatments, cross-border coverage in the UK and Spain, broader service range, and greater control over treatment choices. Gibraltar's limited population sometimes necessitates external transfers for highly specialized treatments, making international coverage valuable. Private health insurance premiums are tax-deductible up to £5,395.

Gibraltar follows a British-based education system with some local adaptations. Compulsory free education runs from ages 4 to 16. The territory maintains 14 public schools, one further education college, and 2 private schools. Teachers train at UK universities and colleges and must register with the UK Department for Education.

School Structure

Education begins with Nursery from age 3 (optional), followed by First School ages 4-7 across 8 establishments. Middle School serves ages 8-11 in 6 establishments. Secondary education operates through 2 comprehensive schools for ages 12-18. Sixth Form (ages 16-18) is optional after GCSEs and prepares students for A-levels.

Public schools follow the National Curriculum of England and are free for eligible residents. The Gibraltar government funds these schools, providing education quality comparable to UK establishments.

Private Schools in Gibraltar

Loreto Convent School is a mixed Catholic primary school serving over 450 students from nursery through age 11. Open to all faiths, it prepares children for local comprehensive schools and UK schools. Contact: 13 Europa Rd, Gibraltar GX11 1AA - Tel: +350 200 75781. Fees available upon direct inquiry.

Prior Park School is a mixed Catholic secondary school for ages 12-18 providing Catholic education. Westside School is a modern mixed school applying Project Based Learning methodology.

International Schools in Nearby Spain

With no international schools within Gibraltar proper, many expat families opt for residence in nearby Spain. Sotogrande International School, located in Sotogrande, Spain, is the closest option to Gibraltar. It serves ages 6 months to 18 with a complete International Baccalaureate (IB) program. Ranked among the world's top 5 IB schools, it offers boarding and day options with Apple technology integration.

English International College in Marbella follows the English National Curriculum and prepares students for IGCSE, GCSE, AS, and A-levels. Instruction is in English with Spanish as a second language. Address: Urbanizacion Ricmar, Ctra. de Cádiz-Málaga Km. 189,5, 29604 Marbella - Tel: +34 952 83 10 58. Uniforms required, fees available upon inquiry.

Education Costs

Private nurseries in Gibraltar range from £500 to £667 monthly, averaging £583.34 in 2025. International school fees in Spain vary considerably and should be requested directly from institutions. Many families also consider UK boarding schools, facilitated by regular UK-Gibraltar flights.

Higher Education

Gibraltar College offers full-time and part-time courses, academic, professional, and vocational, from pre-GCSE through degree level. It serves approximately 400 full-time students and operates as an examination center in collaboration with UK bodies.

The University of Gibraltar is a modern institution offering programs in Business, Health Sciences, Education, Gaming, History, and Natural Sciences. Accredited by the UK's Quality Assurance Agency for Higher Education in 2021, it's chaired by Sir Lindsay Hoyle, Speaker of the UK House of Commons. Scholarships include Parasol Scholarships for Business and Gibraltar Commonwealth Scholarships. A BSc (Hons) Nursing (Adult) program operates in collaboration with St George's University of London and Kingston University London.

Practical Recommendations

For private or international school enrollment, apply well in advance as spaces are limited. Many expat families choose residence in nearby Spain (La Línea, Sotogrande, Marbella) to access international schools while working in Gibraltar. This solution offers better value for housing and broadens educational options.

Gibraltar's property market operates under extreme space constraints due to the territory's 6.8 km² size. High demand and limited supply drive prices up, with rents averaging 107.7% higher than Germany. Available property types include apartments (1-3 bedrooms), detached houses, townhouses, penthouses, studios, and villas.

Rental Costs in 2025

A one-bedroom apartment in city center averages £1,517 monthly (range £1,200-£2,000). Outside the center, expect around £1,280 monthly (£1,100-£1,700). A three-bedroom apartment in city center rents for approximately £2,750 monthly (£2,500-£3,000), while outside center locations average £2,408 monthly (£1,900-£3,000). These rates reflect the scarcity of available space on the Rock.

Purchase Prices per Square Meter

For property purchases, city center prices average £771.60 per m² (range £557.41-£1,021.92). Outside center areas cost £592.76 per m² (£466.53-£743.22). Fixed 20-year mortgage rates hover around 4.25% (range 3.60%-4.90%). Mortgage interest on loans up to £300,000 for primary residence qualifies for tax deduction.

Desirable Neighborhoods

South District features prestigious properties highly sought after by affluent buyers. Upper Town, a historic neighborhood on the Rock's slopes, offers spectacular views of the strait, Spain, and Morocco. The gated Buena Vista Park development provides high-end residences in a secure environment.

Ocean Village is a modern district prized for its marina, dining, and nightlife. It offers immediate proximity to shops and a dynamic lifestyle. Catalan Bay is a picturesque fishing village attracting those seeking authentic character. The east side hosts modern residential developments, while Engineers Road remains a particularly sought-after location.

Recent Developments

Several new projects enhance housing options. EuroCity development offers new modern studios with pools. Bob Peliza Mews represents ongoing housing development. Library Villas provide spacious properties for families.

Government Housing Program

The Gibraltar government manages a rental and affordable purchase housing program to help residents secure accommodation. These units are allocated based on specific eligibility criteria. Inquire with local authorities if you might qualify for this program.

Main Real Estate Agencies

For property searches, contact major real estate agencies operating in the territory. Note that finding pet-friendly accommodation can prove challenging due to high demand and space constraints.

Alternative: Living in Spain

Facing high Gibraltar prices, many expats choose residence just across the border in Spain. La Línea de la Concepción and Sotogrande offer more spacious, affordable housing while enabling work in Gibraltar. This solution provides excellent value, with the added benefit of easier access to Spanish international schools. Daily border crossing has been simplified since the June 2025 agreement.

Planning your move to Gibraltar requires careful preparation, particularly regarding the border situation. The Gibraltar-Spain frontier experiences high traffic, and controls can cause delays during peak hours. The Gibraltar Borders and Coastguard Agency provides live video feeds of queue conditions to help plan your crossings. Here's a comprehensive checklist for a successful relocation.

Essential Documentation

1. Valid passport or ID card for your entire stay duration, depending on your nationality
2. Work permit if you're a non-EEA national planning professional activity
3. Proof of social security contributions for public healthcare access via GPMS
4. Tax number required for Gibraltar Health Authority registration
5. Income verification and bank statements proving financial self-sufficiency
6. Rental agreement or accommodation proof in Gibraltar
7. Educational credentials and professional certifications, ideally with certified translations if necessary

Border Crossing

The Gibraltar-Spain border charges no entry or exit fees. However, parking in Gibraltar can be difficult during peak hours. A practical alternative involves parking in Spain and walking across the border. Santa Barbara Parking in La Línea, located beside the border (Tel: +34 956 63 95 15), and Alcaidesa Marina 700 meters from the border (Tel: +34 956 021660) offer convenient parking solutions.

Vehicle Transport and Motorhomes

If considering arrival by motorhome, note they're prohibited on Gibraltar streets, at Upper Rock, and from parking. Camping sites are available in La Línea, Spain, just 5 minutes' walk from the border. Strict rules apply to goods: declare all prohibited or taxable products. The duty-free allowance applies only once per calendar month.

Customs Considerations

Gibraltar is not part of the EU customs union, so declare duty-free goods to Spanish customs if traveling onward to Spain. Prepare a detailed inventory of personal belongings to facilitate customs clearance. Valuable items, electronics, and jewelry should be declared with purchase receipts when possible.

Opening Bank Accounts

Upon arrival, plan to open a local bank account. Gibraltar hosts numerous local and international banks. You'll need your passport, proof of Gibraltar residence, tax number, and sometimes a reference letter from your current bank. The local currency, the Gibraltar Pound, maintains 1:1 parity with Pound Sterling, which is also widely accepted.

Registering for Public Services

Once settled, register promptly with the Gibraltar Health Authority if you meet public system eligibility requirements. Also arrange electricity, water, and internet contracts. The territory enjoys excellent internet connectivity with fiber availability. Enroll children in schools well in advance, especially if targeting private or international schools in Spain where spaces are limited.

Daily Life Adaptation

With Gibraltar spanning just 6.8 km², most locations are walkable. Local bus networks offer an economical alternative. Familiarize yourself with shop hours: typically Monday-Friday 10 AM-7 PM, Saturday 10 AM-3 PM, and closed Sundays and holidays (except supermarkets). English is the official language, though Spanish is commonly spoken due to proximity to Spain.

Despite its compact size, Gibraltar delivers surprising cultural, sporting, and recreational activities. Between historic heritage, preserved nature, water sports, and cultural events, the territory offers abundant weekend and leisure options. The Mediterranean climate with approximately 300 sunny days annually enables year-round outdoor pursuits.

Natural Heritage and Iconic Landscapes

The Rock of Gibraltar, a 426-meter limestone promontory, symbolizes the territory. The Upper Rock Nature Reserve covers 40% of the island, harboring unique flora and fauna with over 100 caves to explore. St. Michael's Cave, the largest cavern, impresses with spectacular stalactites and stalagmites. It also serves as a natural auditorium for concerts.

The Skywalk is a glass platform suspended above cliffs offering vertiginous views over the Mediterranean. The Windsor Suspension Bridge crosses a ravine at 70 meters height. At the summit, O'Hara's Battery displays a historic 9.2-inch cannon. The Mediterranean Steps offer approximately one-hour hikes through unique flora and fauna. Alameda Gardens, the territory's botanical gardens, provide a verdant peaceful haven.

Exceptional Wildlife

Gibraltar hosts over 160 Barbary macaques, Europe's only wild monkeys. The Apes' Den offers the best observation location in their natural environment. The Strait of Gibraltar serves as a strategic passage for bird migration observation between Africa and Europe, with millions of birds transiting annually.

Marine excursions enable observation of up to 200 dolphins in the strait. Exceptional marine biodiversity provides easy access to natural reefs and over 35 wrecks for divers. Gibraltar waters constitute a true paradise for underwater life enthusiasts.

Historic and Cultural Sites

The Great Siege Tunnels, 18th-century galleries, house the Military Heritage Centre tracing the territory's military history. Moorish Castle ruins testify to Moorish occupation. Gorham's Cave Complex, a UNESCO site, is famous for the 1848 discovery of a female Neanderthal skull.

Europa Point, at the southern tip, offers views of two continents. It features the 19th-century Trinity Lighthouse and the Ibrahim-Al-Ibrahim Mosque. Casemates Square, the largest public square, concentrates restaurants and regular entertainment. The territory also maintains 5 art galleries for culture enthusiasts.

Sports and Outdoor Activities

Scuba diving is exceptional with access to natural reefs and numerous wrecks. Daily dolphin and whale watching excursions depart from Marina Bay. Hiking trails in the nature reserve showcase local biodiversity. Mountain biking and e-bike tours circle the Rock with 360° coastal road views.

Water sports include jet-skiing, windsurfing, and surfing. Horse riding is available in the surrounding Spanish countryside. Fitness clubs are available for approximately £55-£65 monthly. Tennis courts cost between £0-£5 per hour.

Shopping and Nightlife

Main Street constitutes the primary shopping artery with the advantage of no VAT on purchases. Hours are typically Monday-Friday 10 AM-7 PM, Saturday 10 AM-3 PM, and closed Sundays except supermarkets. Tesco supermarket at Ocean Village facilitates daily shopping.

Casinos at Ocean Village and numerous restaurants and bars at Ocean Village and Casemates Square animate evenings. A cinema ticket costs approximately £10. Gibraltar is also a popular wedding destination thanks to its simple process, fine weather, and scenic landscapes.

Beaches and Relaxation

Eastern Beach serves as the territory's main beach. Catalan Bay offers a fishing village charm beach. Sandy Bay, more tranquil, sits eastward and attracts those seeking quieter surroundings. The climate enables beach enjoyment much of the year.

Cable Car and Summit Access

The cable car transports visitors to the Rock's summit in just 6 minutes. It carries up to 30 passengers and reaches 412 meters altitude. Single or round-trip tickets are available. A free shuttle service connects the border to the cable car for those purchasing tickets online. This option is ideal for panoramic views without the climbing effort.

Gibraltar presents a high cost of living, particularly for housing, though generally slightly lower than London overall. The territory is 2.2% cheaper than Germany excluding rent, but rents are 107.7% higher. The absence of VAT partially offsets certain costs. Here's a detailed expense overview for a single person and a family of four, based on Numbeo data updated August 31, 2025.

Monthly Budget for a Single Person

Here's an estimated monthly expense breakdown for a single individual living in Gibraltar. This budget includes city center rent, standard utilities, food, and some leisure activities. Numbeo estimates cost of living excluding rent at approximately £779-£893 monthly for one person.

Source: Numbeo, August 31, 2025

Monthly Budget for a Family of Four

For a family with two children, expenses increase significantly with larger housing, childcare, and potentially international school fees. Numbeo estimates cost of living excluding rent at approximately £2,796 for a family of four.

Source: Numbeo, August 31, 2025

Reference Food Prices

To help budget groceries, here are basic product prices in Gibraltar: milk (1 gallon) £5.49, white bread (1 lb) £1.34, white rice (1 lb) £1.21, eggs (12) £3.79, local cheese (1 lb) £3.58, chicken (1 lb) £2.98, beef (1 lb) £4.69, apples (1 lb) £1.32, bananas (1 lb) £1.22, tomatoes (1 lb) £1.27, potatoes (1 lb) £0.94, water (1.5L) £0.96, mid-range wine £10, local beer (0.5L) £1.79.

Transportation

A single bus ticket costs £2.15 (£1.80-£2.50). Taxis start at £7 with £3.22 per mile. Gasoline sells at £4.33 per gallon. A new VW Golf costs approximately £33,625 while a Toyota Corolla ranges £23,333-£27,000.

Dining Out

A meal at an inexpensive restaurant costs £15 (£10-£20). A mid-range restaurant meal for two with three courses averages £80 (£55-£90). A McMeal costs £10.75. A pint of draft beer costs £4 and a cappuccino £2.62.

Cost-Reduction Strategies

To optimize your budget, consider residing in nearby Spain where rents are 50-60% cheaper while working in Gibraltar. This solution also provides access to more spacious accommodation. VAT absence in Gibraltar offsets certain purchase costs. Leverage available tax deductions (private health insurance, mortgage interest) to reduce tax burden. Free public schools in Gibraltar offer quality education if you prefer not to invest in private schooling.