HEPSS (High Executive Possessing Specialist Skills) is a Gibraltar tax status for senior executives who earn more than £160,000 a year from a Gibraltar employer. Tax is charged only on the first £160,000 under the gross income based system, which caps your annual bill at £39,940. As of October 2026 the government application fee is £1,264, and you still need a residence document in its own right.
At a glance
| Item | Position as of October 2026 |
|---|---|
| Legal basis | High Executive Possessing Specialist Skills Rules 2008 |
| Who decides | Finance Centre Director (Gibraltar Finance) |
| Salary | More than £160,000 a year earned in Gibraltar |
| Tax | First £160,000 only, under the gross income based system |
| Annual tax | £39,940 at current rates |
| Application fee | £1,264, non-refundable (from 1 August 2026) |
| Prior residence | Not resident or working in Gibraltar in the previous 36 months |
What is HEPSS?
HEPSS is designed to attract senior people whose skills Gibraltar’s economy needs. It does not lower your tax rate. Instead, it limits the income on which you are taxed to the first £160,000, so any salary or bonus above that is not taxed under your HEPSS certificate.
Unlike Category 2 residency, which is for wealthy individuals who may not work locally at all, HEPSS is tied to a specific job with a specific Gibraltar employer. The certificate names you, your employer and your post. If you change roles, the status does not simply follow you. For an overview of all the routes, see the residency and living hub.
Who qualifies for HEPSS?
You need to meet all of the following, and the Finance Centre Director has discretion over the result:
- A senior role. You hold a high executive or senior management post with a company or statutory body in Gibraltar.
- High earnings. You will earn more than £160,000 a year in Gibraltar.
- Specialist skills. Your skills are not available in Gibraltar and are needed to promote or sustain economic activity of particular value to Gibraltar, or a sector the government wants to grow.
- No recent Gibraltar residence. You were not resident or gainfully occupied in Gibraltar at any time in the 36 months before the tax year in which you apply. The Minister for finance can waive this.
- An approved home. You have residential accommodation in Gibraltar, approved by the Finance Centre Director, for your exclusive use while the certificate lasts.
- Good character. References and background checks must satisfy the Director.
How much tax do you pay under HEPSS?
HEPSS individuals are taxed only under the gross income based system, on the first £160,000 of assessable income. The Income Tax Office gives the resulting annual liability as £39,940 at current rates.
Local advisers note that tax is pro-rated in your years of arrival and departure. Other Gibraltar income, such as rent from local property, can be taxed separately. Gibraltar has no capital gains tax. Budget 2026 made no change to personal tax rates, and both the Income Tax Office and Sovereign’s 2026/27 guide still give £39,940.
| Gross salary | Taxed under HEPSS on | Approximate tax |
|---|---|---|
| £180,000 | £160,000 | £39,940 |
| £300,000 | £160,000 | £39,940 |
| £500,000 | £160,000 | £39,940 |
Social insurance contributions are payable separately on Gibraltar employment. Employees pay 10% of gross earnings, between £14.33 and £40.79 a week, so at HEPSS salaries you pay the maximum of about £2,121 a year. Budget 2026 kept these rates unchanged for 2026/27.
How much does HEPSS cost?
The government fee is £1,264, non-refundable. It rose from £1,233 under the High Executive Possessing Specialist Skills (Amendment) Rules 2026, which took effect on 1 August 2026. The fee has risen by a small amount each August in recent years, so check the current figure before you apply.
Beyond the fee, your main costs are the home and professional help with the application. Advisers do not publish fees for HEPSS applications, so ask for a fixed quote, and check whether your employer will pay it.
How to apply for HEPSS
The employer usually drives the application, but you supply much of the evidence.
- Confirm the role fits. Check that the post is genuinely senior and that the case for specialist skills is strong.
- Secure an approved home. Rent or buy accommodation suitable for you and any dependants, and seek approval from the Finance Centre Director.
- Gather the documents. The application form asks for a passport copy, a CV, proof of earnings and two references, one of them from a bank.
- Provide employer details. The form needs the employer’s name, activity, address and date of incorporation, plus your job title and functions.
- Submit to Gibraltar Finance with the £1,264 fee.
- Arrange residence and, if needed, a work permit. These run alongside the tax application (see below).
The certificate can become void if the application contained false or incomplete information, if tax is not paid on time, or if you stop meeting the conditions. Gibraltar Finance publishes no processing time, so build in a margin and ask your adviser for a current estimate.
HEPSS or Category 2: which fits you?
The two regimes are often mentioned together, but they suit different people.
| HEPSS | Category 2 | |
|---|---|---|
| Based on | A senior Gibraltar job | Personal wealth |
| Income test | More than £160,000 salary | None; £5 million net assets for new applicants, as announced in June 2026 |
| Income taxed on | First £160,000 | First £118,000 |
| Annual tax | £39,940 | £37,000 to £42,380 |
| Government fee | £1,264 | £5,000 |
| Prior residence bar | 36 months | Five tax years |
| Local work | Required, for the named employer | Only with Finance Centre approval |
If your income comes mainly from a Gibraltar salary, HEPSS is normally the natural fit. If you live on investments or work for businesses outside Gibraltar, Category 2 is usually the better match. The regimes are designed as alternatives, and we found no official guidance on holding both certificates at once, so raise it with Gibraltar Finance if your circumstances straddle the two.
Do you still need a residence permit and work permit?
Yes. HEPSS is a tax status, not a right to live or work in Gibraltar.
- Work permit. British, EU, EEA and Swiss nationals do not need a work permit. Other nationals do, and the employer must obtain approval in principle from the Department of Employment before a residence application can go forward.
- Residence. Since 14 July 2026, new residents apply under the Residency Regulations 2026 through the government’s residency portal. The employee route requires a contract of at least a year, a salary of at least £37,500 and an age of 55 or under, which a HEPSS executive will usually meet on salary. Local law firms note that HEPSS operates separately from the new permit framework. The Regulations contain no HEPSS-specific route, so an executive over 55 would in practice apply as an employee and rely on the Chief Minister’s power to waive the age limit for people whose skills matter to Gibraltar.
Our guide to working in Gibraltar covers permits, contracts and the Department of Employment in more detail.
Can your family come with you?
Your spouse or civil partner and children can join you under the residence rules, but HEPSS itself covers only your employment income. The approved home must be adequate for any dependants living with you. Since July 2026, bringing a spouse or civil partner on an employee permit involves a deposit of about £2,121 to cover their first year of social insurance. Do not assume that healthcare, schooling or residence documents for family members are automatically arranged by your employer.
Does the UK–EU treaty change HEPSS?
The treaty does not change how HEPSS tax works. It matters for daily life: there are no routine immigration checks at the land border with Spain, and Schengen checks now take place at Gibraltar’s airport and, where needed, the port. Holders of Gibraltar residence cards are exempt from the EES and can travel in Schengen for 90 days in any 180 without a visa. If your company is relocating to Gibraltar alongside you, read how to set up a company in Gibraltar.