Gibraltar has developed a duty free industrial park for Companies manufacturing or trading in export and such Companies will be eligible for the 5% tax rate. Gibraltar benefits from the General System of Preferences. This is an arrangement whereby industrialised nations (including the remainder of the EU) allow preferential access to their market for specified goods from less developed economies.

Such a company, once established, can avail itself of Tax Exempt Status or Qualifying Status, whichever is preferred (see above).

In 1992 the Gibraltar Government introduced a new low level of tax for High Net Worth Individuals (now known as Category 2 individuals) to encourage such individuals to take tax residency in Gibraltar. Category 2 individuals pay tax on the first GBP 50,000 of assessable income. At current tax rates that equates to a maximum tax liability of GBP 20,400 per annum. The minimum tax payable is GBP 14,000. An individual can elect to have his or her worldwide income assessed and in doing so may be able to avoid being considered a tax resident in another higher tax jurisdiction.

An application fee of GBP 1,000 is payable on application.

These rules govern employed individuals who are relocated to Gibraltar and possess specialist skills that are not available locally. Such individuals pay a flat rate of GBP 10,000 and at current tax rates that means that any income earned in excess of GBP27,000 (approx) will be tax-free.

An application fee of GBP 500 is payable on application.

In order to meet the growing need for middle managers (i.e. those earning less than GBP 50,000), a new category of REPSS with a lower tax ceiling of GBP 5,000 was introduced in 1999.

For every certificate issued under this category the employer must create at least one new position for a Gibraltarian.

Criteria and conditions are the same as those for Category 3 applicants.

All ships registered in Gibraltar are classified as British ships under the provisions of the Merchant Shipping Act 1894. Gibraltar Tax Exempt Companies can be used to own ships which can be operated and chartered free from tax.

To be effective for this purpose the vessel should be owned by a company incorporated in the jurisdiction in which it is registered. It is therefore useful to identify jurisdiction which has a Ship Registry or a dependant territory such as Gibraltar whereby vessels owned by these companies can be registered in the UK Ship Registry.