Just a few hours after announcing the new Residence Criteria Framework, the Government has turned its attention to the Category 2 regime, raising both the minimum net wealth requirement and the application fee for new applicants. What follows is a closer look at what has actually changed, who it affects, and what it signals about Gibraltar’s approach to attracting high net worth individuals
What Is Changing?
Category 2 status is Gibraltar’s regime for high net worth individuals. Under the new changes, the minimum net wealth requirement for new applicants will rise from £2 million to £5 million, and the application fee will increase from £1,233 to £5,000.
With the UK-EU Treaty concerning Gibraltar’s future relationship with the European Union and Schengen area now agreed, the jurisdiction sees itself entering a period of renewed international attractiveness. The Government considers it appropriate that Category 2 status evolve alongside this and continue attracting individuals who want to make a meaningful contribution to the local economy.
Who Is Affected?
The changes apply only to new Category 2 applicants. Individuals who already hold Category 2 status are fully grandfathered and will not be affected.
A threshold of £5 million in net wealth, combined with a fee increase of more than four times the previous level, signals a clear intention to position Category 2 as a status for a narrower, wealthier pool of individuals.
What Category 2 Doesn’t Cover
Alongside the headline figures, the Government has used this announcement to restate a long-standing principle: Category 2 status does not, and will not, confer entitlement to publicly funded schooling or healthcare. The Government is keen to manage expectations clearly as the regime attracts renewed interest.
A more substantive change sits alongside that reaffirmation: an individual who does not maintain their Category 2 status will no longer have a right to continue residing in Gibraltar. This ties Category 2 status and the right to reside in Gibraltar together more explicitly than before, with clear implications for ongoing compliance.
The Bigger Picture
Minister for Justice, Trade and Industry Nigel Feetham has described this as a measured and targeted update rather than a wholesale overhaul, following a consultation process in which a broader range of reforms was considered, but ultimately set aside in favour of these specific changes. He has also pointed to the strong interest in Category 2 status since the Treaty announcement, describing the changes as a response to growing confidence in Gibraltar’s future, rather than an attempt to dampen demand.
Key Questions About Category 2 Status
What is the new minimum net wealth requirement for Category 2 status?
New applicants will need a minimum net wealth of £5 million, up from the previous £2 million threshold.
What is the new application fee?
The application fee rises from £1,233 to £5,000.
Does this affect existing Category 2 holders?
No. Existing Category 2 individuals are fully grandfathered and are not subject to the revised wealth threshold.
Does Category 2 status provide access to public healthcare or schooling?
No. The Government has reaffirmed that Category 2 status does not confer entitlement to publicly funded healthcare or schooling, consistent with the long-standing position.
What happens if Category 2 status is not maintained?
An individual who fails to maintain their Category 2 status will lose their right to continue residing in Gibraltar under the new rules.
Getting The Right Advice
At Abacus, we regularly support high net worth individuals and their advisers through Gibraltar’s Category 2 regime, from initial eligibility assessments through to ongoing compliance once status has been granted.
If you are weighing up whether the changes to the Category 2 regime still makes Gibraltar the right fit, please do not hesitate to get in touch with us.