Introduced more than a decade ago as an efficient way for people with assets of £1m or more to limit their annual personal tax bills, Gibraltar’s High Net Worth Individuals (HNWI) scheme has proved one of the most successful financial services products geared to the individual that The Rock offers. Apart from its tax-efficient financial aspect, the scheme’s attractiveness is enhanced by the Rock’s geographical situation, a sun-kissed climate and a lifestyle that combines the ease of Mediterranean living with efficient communications and an English-speaking environment. Attracted by these factors, the number of millionaires registering under the scheme has risen each year and today stands close to the 250 mark.
Under the HNWI scheme, individuals with assets of more than £1m can limit their personal tax bill to a maximum of less than £20,000 on their worldwide earnings – and in most cases pay as little as £10,000 to the tax man. However, recently implemented government proposals will see the minimum tax level rise by £4,000 a year and double the registration fee from its current £500 to £1,000. Despite this, growth in the number of HNWIs registered under the scheme is expected to continue in the foreseeable future. Certainly, a change in rules introduced in July last year that saw the minimum asset base of would-be applicants for registration double to £2m has not shortened the queue.
