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Taxation of Qualifying (Category Two) Individuals
In February 1992 Gibraltar introduced new low tax limits for high net worth individuals to encourage such individuals to become resident in Gibraltar.

Qualifying (Category Two) Individuals will pay tax on the first ?45,000 of assessable income which results in a maximum tax charge of ?20,000 and in any event may not be less that ?10,000. Only income arising in or remitted to Gibraltar is taxable.

Conditions
For an individual to qualify as an Qualifying (Category Two) Individual he/she must fulfil the following conditions:
- They must have available for their exclusive use approved residential accommodation in Gibraltar.
- The individual is not otherwise resident in Gibraltar and has not been so resident in the preceding five years. (The Finance Centre Director may waive this requirement in certain circumstances.)

Benefits
Apart from limiting one's tax liability to between ?10,000 and ?20,000 irrespective of the individual's income a Qualifying (Category Two) Individual would also benefit from the following:
There is no Estate Duty in Gibraltar.
A Qualifying (Category Two) Individual may continue to hold a Gibraltar tax exempt or qualifying company and income from such companies would only be taxable if received by the individual in Gibraltar.