Gibraltar’s new draft legislation on property

A recent draft legislation published by the government of Gibraltar seeking to introduce a tax on profits derived from residential property sales in circumstances where an owner holds three or more properties has sparked considerable discussion and given rise to polarised views among politicians investors property agents and lawyers on the Rock in recent months.

The measure was first announced by Nigel Feetham the minister for justice trade and industry during the Budget debate in the Gibraltar parliament in early July. While praised by many as a long overdue tax on those involved in property trading others warn that it may deter inward investment to Gibraltar at a time of political and financial uncertainty for the Rock.

Scope of the proposed legislation

The Income Tax (Amendment No 2) Bill 2024 applies from 1 August 2024. It provides that income derived from gains made...