Global Daily Tax News, Gibraltar Amends Rules For Foreign Talent Relocation Tax Break, (Jun 26, 2025)

The Gibraltar Government has published the Income Tax (Amendment No.2) Act 2025 in the Official Gazette.

The legislation implements changes proposed to the income tax exemption for employer-funded accommodation for non-resident individuals who have relocated to work in Gibraltar.

The legislation shortens the duration of the exemption from seven years to four years. In addition, the exemption is available only once for each employee.

The Act stipulates that the exemption will be offered where the employee has relocated to and resides in Gibraltar as a result of either:

• becoming employed in Gibraltar;

• an alteration of employment duties; or

• an alteration to the place employment duties are actually performed.

To be eligible, the employee's former place of residence must not have been "within a reasonable daily travelling distance of Gibraltar".

To benefit from the measure, the skills supplied by the employee must not be readily available in Gibraltar and must be "important for the economic development and growth of Gibraltar," as determined by the Commissioner.

The exemption is subject to the approval of a claim made for the exemption from the Commissioner "in such form and manner as the Commissioner may require", the Act provides. Any subsequent change in the taxpayer's residence must be notified to the Commissioner.