Gibraltar Location

5.6 Gross income based system: tax rates and deductions

5.6.1 Tax rates for 2016-2017 and 2015-2016

(a) Individuals with gross income up to £25,000:

Taxable Income Bands Rate % Tax on Band
First £10,000 6% £600
£10,001-£17,000 20% £1,400
Balance 28%

(b) Individuals with gross income of more than £25,000:

Taxable Income Bands Rate % Tax on Band
First £17,000 16% 2,720
£17,001-£25,000 19% 1,520
£25,001-£40,000 25% 3,750
£40,001-£105,000 28% 18,200
£105,001-£500,000 25% 98,750
£500,001-£700,000 18% 36,000
Balance 5%
5.6.2 Deductions
Approved expenditure on premises

This deduction extends to taxpayers under the GIBS, but the deduction is restricted to a maximum of £5,000 (see Section 5.3.5 for further details).

Purchase of main residential property in Gibraltar

A deduction is available with respect to mortgage interest payments up to a maximum of £1,500. There is also a deduction of up to £6,500 for first- time buyers with respect to approved expenditure toward the purchase of their home.

Pension contributions

There is a deduction of up to £1,500 p.a. (2013-14: £1,200) with respect to contributions to approved pension schemes.

Medical insurance

There is a deduction available with respect to private medical insurance of up to £3,000 p.a.

Installation of solar energy for boilers

There is an allowance of up to £3,000, given over two years, for the installation of solar energy for boilers.