New residency policy sets age cap and earnings threshold

The Gibraltar Government has introduced an age cap of 55 and a minimum earnings requirement tied to average wages in Gibraltar as key elements of new criteria linking residency to economic contribution to protect public services.

The new criteria will apply to people seeking residence in Gibraltar after October 6, 2025, while existing holders of Gibraltar identity cards and people who had already obtained residence before that date would remain under the previous regime.

Those resident before that date but without a residence card would fall under the new rules unless discretion was exercised to allow an application under the old system.

The new regime will also lengthen the route to Gibraltarian Status for future applicants.

Anyone applying to become a resident after October 6, 2025, would need 20 years of continuous residence before becoming eligible, compared with 10 years for people already in Gibraltar before that date with valid documentation.

Residence permits would be renewed annually and could lapse if tax or social insurance payments stop or after termination of employment unless a new contract is produced.

Residents would be entitled to healthcare and education benefits for their spouse and children, but not to wider social benefits such as public housing, elderly residential care or domiciliary care.

The new criteria were announced by Chief Minister Fabian Picardo and Business Minister Gemma Arias Vasquez at a press conference in No.6 Convent Place on Wednesday.

Mr Picardo stressed the changes would not affect Gibraltarians or those entitled to be treated as such.

“None of these rules apply to Gibraltarians,” he said.

“They do not apply to people with a red ID card or an entitlement to a red ID card who are not presently resident in Gibraltar.”

“This is about people who are not Gibraltarians or who are not entitled to be registered as Gibraltarians moving to Gibraltar because they wish to move to Gibraltar.”

ECONOMIC LINK

Announcing the policy, Mr Picardo said the changes were needed because a future treaty framework would make Gibraltar more attractive as a place to live.

That was evidenced last year after the announcement of political agreement for a treaty led to a surge in residency applications that forced the Government to pause new entrants until the criteria could be reviewed and tightened.

At heart of the Government’s concern was ensuring that Gibraltar’s public services and generous residency benefits remained sustainable.

He said the Government was keen to ensure people who came to Gibraltar did so because “there is an economic link with Gibraltar” and because that link led to a contribution in exchange for the public services they may receive.

For employees applying for a residence permit, the policy requires an employment contract showing gross annual earnings equivalent to the average gross annual earnings in Gibraltar, currently set at £37,500. That figure would be updated each year by notice in the Gazette.

The contract must also be with a business that has been trading in or from Gibraltar for at least a year, is properly registered and licensed, and has all payments and filings up to date.

“We’ve wanted to have an objective criteria and that criteria will be the average annual earnings set out in the employment survey,” Mr Picardo said.

“The criteria is designed to ensure that those who are going to come to Gibraltar can genuinely afford to live in Gibraltar.”

Applicants would also need to show evidence of renting or purchasing property in Gibraltar as their primary residence.

Rentals must be for at least 12 months and cannot be holiday lets, while purchased properties cannot be let during the period of the residence permit and must be available for the applicant’s exclusive use.

People already granted residence and living on vessels would be allowed to continue doing so, but no future applications from individuals living on vessels would be accepted.

One of the central changes is the age requirement.

Applicants must be aged 55 or under, although the Chief Minister would retain discretion to approve applicants over 55 where their residence is deemed to be in Gibraltar’s interests.

The purpose is to ensure individuals contribute to the economy for a significant period before remaining in Gibraltar longer term when they are no longer economically active.

“This is the first time that Gibraltar will have an age parameter for residents,” Mr Picardo said, adding the key issue was ensuring the sustainability of public services available in Gibraltar.

He said the policy sought to ensure people coming to Gibraltar had time to contribute before becoming eligible for services such as elderly residential care.

“People who move to Gibraltar after the age of 55 would today potentially have access to that care without having contributed to it.”

FLEXIBILITY

The policy nonetheless sets out some flexibility around the salary threshold.

For applicants under 30, the earnings requirement may be waived if the employer pays tax and social insurance contributions as if the employee were earning the Gibraltar average salary until that threshold is reached.

A separate deposit system is proposed for businesses trading for less than a year and for newly self-employed individuals, covering first-year tax and social insurance liabilities.

Mrs Arias Vasquez said the policy was intended to balance protection of services with the needs of employers.

“This was a policy that was intended to protect public services…whilst continuing to make Gibraltar very pro-business and very open to business,” she said.

She added that the under-30 provision was intended to help employers recruit younger workers while maintaining contribution levels.

“If an employer wants to bring in someone under 30, they are able to, as long as they contribute the tax and social insurance, as if that individual were earning £37,500,” she said.

The Government will also apply a degree of flexibility where partnerships and long-term relationships involving a Gibraltarian and a non-resident.

“We're going to be very discerning in that respect and we'll be providing permission for people to come if they are in a civil partnership with a Gibraltarian or indeed in a long-term relationship with a Gibraltarian,” Mr Picardo told reporters.

“We understand that those real-world issues exist and we'll be trying to be a bit more lenient when it comes to those issues.”

“But that's different to a situation where you're dealing with somebody who's just decided that they quite like the idea of living in Gibraltar because they want to spend a lot of time in Marbella and in Tarifa and all the rest of it.”

“Gibraltar becomes a very attractive proposition in that sense.”

“And look, Gibraltar cannot be the easy answer to people who want to live a southern European lifestyle in a British jurisdiction.”

Mrs Arias Vasquez said the Government had not set a numerical cap on new residents because it sees the issue as one of ensuring that anyone who comes to Gibraltar is making a meaningful contribution to public services.

She said there was no specific cap under discussion and that the Government would instead keep the position under review to see whether services could cope, adding that ministers believed the new rules were strong enough to manage any influx.

Chief Minister Fabian Picardo said the Government did not believe “arbitrary caps” were the right answer.

He said the focus should be on whether people moving to Gibraltar were contributing through tax and social insurance in a way that helped grow the pool of money available for services and infrastructure, rather than on trying to hit a predetermined figure.

“In terms of immigration here, we are not talking about wanting to cap the number of people who come, we’re talking about wanting to be able to protect services,” he said, adding that if those coming to Gibraltar were contributing meaningfully, the Government believed the market and the new criteria would help determine the right balance without the need for a hard cap.

Details on changes to the Cat II residency criteria, which provides a different route to residency, are expected to be announced on Thursday.