Introduction

On 17 June 2026, HM Government of Gibraltar announced a comprehensive new Residence Criteria Framework, marking the most significant overhaul of the territory's ordinary residence rules in recent memory. The framework is designed to ensure that residency in Gibraltar is grounded in genuine economic contribution, regulatory compliance, and the protection and sustainability of public services. For individuals considering a move to Gibraltar, business owners, and professional advisers alike, the changes have far-reaching implications.

At Ellul & Cruz, we have long advised private clients and businesses on Gibraltar residency matters, and we set out below a summary of the existing ordinary residence regime, the key changes announced, and what they mean in practice.

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Background: Gibraltar's Existing Ordinary Residence Rules

Gibraltar has historically offered several distinct residency routes, each tailored to different profiles and objectives. The route most commonly used by individuals who live and work in the territory is ordinary residence, which is the focus of the Government's new framework.

Ordinary residence has traditionally been available to individuals who are employed or self-employed in Gibraltar, subject to compliance with immigration requirements. Until now, the criteria governing ordinary residence applications have been comparatively flexible, with no publicly prescribed minimum salary threshold and limited formal safeguards around accommodation standards, vetting, or ongoing compliance. The system afforded considerable discretion to the authorities, and the absence of detailed published criteria meant that applicants often had limited visibility of the requirements in advance.

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The New Residence Criteria Framework: Key Changes

The Government's policy paper and press release set out a new framework introducing clearer, more transparent criteria for those applying for ordinary residence in Gibraltar. The principal changes are as follows:

Minimum salary and employment requirements. New residents will generally be required to hold a Gibraltar employment contract with average gross annual earnings of at least £37,500 (rounded up to the nearest £500), a figure linked to the average gross annual earnings in Gibraltar as per the Employment Survey Report and subject to annual revision. The employment must be with a business that has been trading in or from Gibraltar for at least one year, is fully registered and licensed under the Fair Trading Act and any other applicable regulatory authority, and has all payments and filings up to date.

Accommodation. Applicants must rent or purchase residential property in Gibraltar for use as their primary residence. Rental agreements must be for a minimum of twelve months, and holiday lets will not qualify. Importantly, no future applications will be accepted from individuals proposing to live aboard vessels, although existing vessel-based residents will be permitted to continue under the current arrangements.

Age requirements. Applicants must generally be aged 55 or under, although the Chief Minister retains a discretion to allow applicants over that age where their residence is deemed to be in the interests of Gibraltar. Persons over 55 who are granted residence would have no entitlement to Elderly Residential Services unless and until they obtain Gibraltarian Status.

Security vetting. All applicants must submit an official vetting form from their country of origin. The Government also reserves the right to refuse, suspend, or revoke a Residence Permit where the individual is not of good standing or on public policy, public health, or public security grounds.

Young persons. Applicants under 30 may qualify below the £37,500 salary threshold, provided their employer pays the applicable tax and social insurance contributions as though the threshold were met.

Self-employed individuals and new businesses. New self-employed applicants and businesses that have been trading for less than one year will generally be required to lodge a deposit covering the estimated first-year tax and social insurance liabilities. This deposit is to be returned upon the cessation of business, and the Minister for Business retains a discretion to waive the full amount in defined circumstances.

Benefits and entitlements. Residents will continue to have access to the Gibraltar Group Practice Medical Scheme (GPMS) for them selves, their spouse, and their children, as well as schooling in Gibraltar for their children. Scholarships for dependent children will be available after 10 years of continuous lawful residence and uninterrupted payment of tax and social insurance. However, residence alone will not provide access to elderly residential care, domiciliary care, public or affordable housing, berths in the Small Boats Marina, or other social benefits.

Partners and families. Applicants may be accompanied by a spouse and children. Unmarried partners of individuals with Gibraltarian Status may be permitted to reside in Gibraltar where evidence of a durable relationship of at least two years is provided. Spouses of applicants will be required to pay an amount equivalent to the maximum employee's Social Insurance contribution.

Renewal, lapse, and enforcement. Residence permits will be renewed annually, with confirmation required that all conditions continue to be met. Permits will automatically lapse if tax and social insurance payments cease, or eight weeks after a Notice of Termination of Terms of Engagement is filed with the Department of Employment, unless a new employment contract is secured. Anti-avoidance measures will flag any downward variations in salary to ensure the conditions under which the permit was issued continue to be met. Application fees will increase to £250, annual renewals will cost £100, and individuals residing in Gibraltar without permission may face fines of up to £2,500.

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Existing Residents: Grandfathering Provisions

A key reassurance for those already resident in Gibraltar is that the new criteria do not apply to current holders of Gibraltar Identity Cards or current Gibraltar residents who obtained residence before 6 October 2025. Those persons will remain subject to the regime applicable on that date, and the existing 10-year qualifying period for Gibraltarian Status will be respected. Persons who were in Gibraltar before 6 October 2025 but did not hold a residence card will generally be subject to the new regime, unless there is good reason for the exercise of discretion to permit an application under the old rules.

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Practical Implications

For prospective residents, the new framework introduces a markedly more structured and rigorous application process. The minimum salary threshold, accommodation requirements, age restriction, security vetting, and deposit obligations for the self-employed all represent a significant departure from the relative informality of the previous system. Applicants and their employers will need to plan carefully and ensure full compliance from the outset.

For existing residents, the principal concern will be the doubling of the qualifying period for Gibraltarian Status for anyone who applied for residency after 6 October 2025, and the narrower range of social benefits available to residents who have not attained Gibraltarian Status.

For businesses, the requirement that employing entities have been trading for at least one year, be fully registered and licensed, and have all payments and filings up to date may create practical challenges, particularly for start-ups and newly established operations seeking to recruit from abroad.

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What Comes Next

The policy paper sets out the Government's proposed framework, but further legislation, regulations, and guidance will be required before the new regime is fully implemented. No commencement date appears to have been specified in the policy paper. The regulations giving effect to the new framework are now being drafted and will shortly be published.

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How We Can Help

At Ellul & Cruz, we have extensive experience advising individuals, families, and businesses on all aspects of Gibraltar residency, including ordinary residence applications and the regulatory framework governing them. We understand the practical and legal complexities involved and are well placed to help clients navigate the new framework as it takes shape.

If you are considering relocating to Gibraltar, reviewing your existing residency arrangements, or assessing the impact of these changes on your business, we would be happy to help.

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Contact

Marc X. Ellul (marc@ellulcruz.com) — Managing Director, Ellul & Cruz. Marc isa leading corporate, investment funds, and private client lawyer with over 30years' experience, and a former Chair of the Gibraltar Finance Centre Council. He holds a Professional Certificate of Competence in Gibraltar Tax from the University of Gibraltar and is widely recognised for his deep expertise in advising high-net-worth individuals and businesses on Gibraltar's regulatory and fiscal landscape.

Neil A. Lopez (neil@ellulcruz.com)  — Director, Ellul& Cruz. Neil is a corporate, commercial, and shipping lawyer and one of Gibraltar's busiest Notaries Public, heading the firm's Notarial Department. He is active in private client work advising high-net-worth individuals on a wide array of matters, including Gibraltar residency, tax, and fintech.

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