Guide to Buying a Property in Gibraltar

If you have thought that Gibraltar is the perfect place for you to call home, then you are in luck. Gibraltar offers many advantages, the real estate market is booming, and there are relatively straightforward steps to buy a property in Gibraltar.

If you have not already done so, take an opportunity to visit to find out how to buy a property in Gibraltar. Visit the different locations, the types of property for sale and property prices in the different areas, chat with locals and get a real feel for Gibraltar.

Your next step when looking for a property to buy should be to hook up with an established real estate agent to find out more about how much is property in Gibraltar.

Guide to sell a property in Gibraltar

Who can buy a property in Gibraltar? 🤷‍♀️

Connecting with a real estate agent allows you to discover every aspect regarding buying a property. One of the questions we come across is, can foreigners buy property in Gibraltar, and the short answer is “yes”. Your real estate agent can advise you upon some work permit or residency requirements and, of course, the tax advantages for foreigners buying a property in Gibraltar.

When it comes to the question can a EU citizen buy a property, during the Brexit withdrawal period, EU nationals retain their existing pre-Brexit rights, and buying a property for a EU citizen is relatively straightforward? At the end of 2020, the process will likely fall to that existing for non-EU citizens, for example, buyers from Switzerland or Norway, with slightly more paperwork.

Gibraltar is an open market; hence, there is no question of who cannot buy a house on Gibraltar. Provided you have the correct paperwork, a realistic budget; anyone can buy property in Gibraltar.

Another question that often arises from clients relates to can a British citizen buy property in Gibraltar, the simple answer is yes so if you are thinking about where to buy a property, the UK is similar to Gibraltar, so a very good option.

Find a property in Gibraltar 🕵️‍♀️

The next step is to find property estate agents in Gibraltar. They will help you learn everything you need to know about properties in Gibraltar. Sitting down with real estate agents will provide you with upfront information and detail of their real estate services.

If you are wondering what is the 3-year residency market in Gibraltar all about, then we are happy to explain. Properties will appear on a listing stating 3-year residency required and this is a Government scheme to build affordable housing for natives, subject to strict rules regarding letting and reselling.

After three years, the owners of these properties can sell them, but it is crucial to check on the retention of any restrictive covenants before buying such a property.

How to get a council house in Gibraltar? 🏠

Gibraltar Government has a large stock of properties, targeted explicitly towards native Gibraltarians.

You may wonder how to get council house waiting list information and how to go through the process for council house application. Currently, there are plans to build approximately 1600 council houses across Gibraltar, all due to be completed by the end of 2021.

While individuals are required to be eligible according to the Government criteria, this will mean a substantial number of older council properties becoming available to buy. The 3-year residency requirements will stand for anyone wanting to buy a council property.

The statistics showing the council house list of properties and waiting lists are available on the Government website along with details of eligibility as to who can apply for a council house. Council house availability in Gibraltar requires more properties built, and the Government are striving to meet their goals to meet demand.

Gibraltar Visa requirements

Legal checks in Gibraltar ✍️

Gibraltar property taxes ✅

Regarding property in Gibraltar, there are no inheritance tax, estate duty, estateplanning tax, property holding tax, or wealth tax. Property owners are obliged to pay income tax on net rental profits (after deductions). If the property owner is a company, the corporate tax applies to net rental profits, currently set at 10%

What costs are payable on purchase of a property in Gibraltar? ✅

Apart from stamp duty, expect to pay registration costs including land registry fees of approximately £175, commissioner’s fees and various disbursements ranging from £20 to £40 and legal fees estimated from £500.

What is the stamp duty on a property purchase in Gibraltar? ✅

Stamp duty is between 0% for properties less than £200,000 upwards to 3.5% of properties from £350,000. For “Qualifying Purchasers,” i.e. first and second-time buyers and affordable housing schemes, there are special allowances. No stamp duty applies for transfers of properties between spouses or in some cases of forced sales or property upgrades.

When is stamp duty due? ✅

On completion of the conveyance and interest in the property passes to the new owner, the stamp duty falls due.

What is stamp duty payable on? ✅

Stamp duty is calculated and payable on the purchase price of the property.

How long does the purchase process take on a resale property in Gibraltar? ✅

It depends upon the situation between the vendor, the purchaser and the availability of paperwork. The process can take from as little as one or two weeks. Where a mortgage is involved, the process is generally around four weeks.

Are there any taxes other than stamp duty on Gibraltar property? ✅

Where there is income earned from Gibraltar property, i.e. rent, then tax will apply to the net profits of this income.

How to get a mortgage in Gibraltar 🏦

We are often approached by clients asking, “will my bank give a mortgage on a Gibraltar property?” Banking and finance are cornerstones of business and economy in Gibraltar and there are many international banks with branches in Gibraltar.

If your bank is not in Gibraltar, then getting a mortgage is Gibraltar is straightforward with many leading lending institutions happy to provide mortgages.

When you buy a property in Gibraltar, and this forms your primary residence, Gibraltar mortgage tax relief applies to mortgage interest payments up to £1,500 per annum maximum. A deduction also applies to up to £7,500 for first-time buyers when the approved expenditure for a residential home. Also, mortgage interest relief applies for mortgages on residential properties up to a loan maximum of £350,000.

Tax relief in Gibraltar applies in cases of personal pension schemes, retirement annuity contracts and tax relief may be topped up from a one-year carry back provision.

When is the best time to buy a property in Spain?

Such schemes are available for residents presenting themselves in Gibraltar for at least 183 days in a single tax year or at least 300 days in 3 consecutive tax years.

To obtain a good idea of mortgage rates in Gibraltar it is advisable to use an online mortgage calculator. Gibraltar has a number of reputable banks that provide this service. For example, the NatWest Mortgage calculator allows users to compare mortgage rates with other local banks.

Look at Gibraltar Bank mortgage rates advice page; it has an online chat facility where you can find the most up to date Gibraltar bank mortgage rates.

The number of mortgage providers in Gibraltar is vast and most real estate agents can provide advice on mortgage lenders and mortgage brokers to make your journey to a homeowner in Gibraltar a smooth and hassle-free process.