Working in Gibraltar as a French National: Right to Work, Salaries, Taxes and Contributions

The Department of Employment reserves the work permit for people who are not authorised to work in Gibraltar, for example nationals from outside the European Economic Area; the permit is requested by the employer for a specific post, for twelve months at most, and an employer who employs without a permit faces a penalty notice of £3,000. Swiss nationals do not need a permit. The official residency portal adds that British, EU, EEA and Swiss nationals do not have to obtain a work permit: a French citizen is in this case.

The employer registers each vacancy at least ten days before the start date, notifies the terms of engagement and declares the end of the contract within seven days. The first week of employment is probationary and either party may end it without notice at its end; pay may not be lower than the minimum wage, and a payslip is given with each payment. Failure to register a post, an employee or a business exposes the employer to a £3,000 fine.

Settling in Gibraltar to work also requires residency: the page living in Gibraltar details the standard criterion (one-year contract, £37,500 gross pay, accommodation, age 55 or under) and the application fees.

The fourth part of the EU-UK agreement concerning Gibraltar is aimed at citizens of the Union who legally reside in Spain. It recognises their right to take up salaried employment in Gibraltar under the rules applicable to British nationals, with equal treatment for working conditions, pay, dismissal and social and tax advantages (excluding access to housing), as well as the right to keep the status in the event of illness, declared involuntary unemployment or training. A document, possibly digital, certifies the status.

A majority of the jobs created in Gibraltar are taken by non-residents. The working in Spain page presents the framework on the other side of the border.

The minimum wage, enforced by the Labour Inspectorate, is raised regularly by the Chief Minister in his budget address. It is close to £10 an hour; at 39 hours a week, that represents about £20,000 a year (calculated over 52 weeks). The average pay used in the budget is close to £40,000 a year.

The residency criterion set at £37,500 of gross annual pay, indexed to average pay from the employment survey, indicates the level expected of an employee who settles. The macroeconomic indicators appear in the "Economic indicators" block above.

The Labour Inspectorate of the Department of Employment enforces the Employment Act and its implementing texts: annual leave, sick pay, redundancy pay, notice, minimum wage, payslips and conditions specific to certain sectors. It issues fixed penalties of £750 to £3,000. The Employment Tribunal, attached to the department, hears disputes between employees and employers.

• Insolvent company: the employee can claim unpaid wages, leave and notice from the insolvency fund, through the Labour Inspectorate, within 30 days of learning of the insolvency.
• End of a residence permit: it lapses 16 weeks after notice of termination of the contract, unless a new contract is accepted.
• Local contract or secondment: see the glossary entries on the local contract and the seconded employee; the guide working abroad compares the statuses.

The Income Tax Office applies a tax year from 1 July to 30 June. Tax is calculated, at the taxpayer's choice, under two systems. The allowances-based system (ABS) taxes taxable income after allowances: 14% on the first £4,000, 17% on the next £12,000 and 39% above. The gross-income-based system (GIBS) applies, up to £25,000, 6% on £10,000, 20% on the next £7,000 and 28% on the balance; above £25,000, 16% on £17,000, 19% on £8,000, 25% on £15,000, 28% on £65,000 then 25% on the balance. The scale above is the one published by the Income Tax Office at the date of consultation and may change.

• Allowances: personal £3,455, spouse £3,455, child £1,190, home purchase £13,000, medical insurance up to £5,395. No tax is due if taxable income does not exceed £11,450.
• Filing: the tax return must be filed electronically; paper returns are no longer accepted.
• Tax residence: an ordinary resident is someone who stays at least 183 days in the tax year or more than 300 days over three consecutive tax years; they are taxed on Gibraltar-source income and certain foreign income received in Gibraltar. There is no capital gains tax or inheritance duty, abolished on 1 April 1997.

For a French tax resident, the BOFiP list (the French tax authority's official doctrine) of treaties in force does not mention Gibraltar. No treaty rule therefore allocates taxation between France and Gibraltar: the domestic law of each state applies, and tax domicile in France is determined under French law. The individuals' tax office confirms the situation before departure.

Since 1 April 2007, the weekly social insurance contributions of anyone carrying on an activity in Gibraltar are proportional to income, between a minimum and a maximum, and shared between the employee and the employer. They cover work accidents, maternity, death, unemployment and pensions, and also fund the Group Practice Medical Scheme (see health system in Gibraltar). The residency portal cites, for a £37,500 salary, about £5,045 of contributions in the first year, of which £2,121 for the employee and £2,923 for the employer.

• Self-employed: register first with the Department of Employment, then with the Income Tax Office (form SE1), which issues a registration certificate. Instalments are due in two equal payments, on 31 January and 30 June. A business registered for less than 12 months, or a first self-employed activity, calls for a deposit of about £14,420 (first-year contributions and 25% tax on £37,500).
• Remote work: the pages consulted define no regime specific to remote work; the standard residency criterion requires an employer operating in or from Gibraltar. A digital nomad consults the page digital nomad insurance and checks their status with the Department of Immigration and Home Affairs.
• French social security: with no agreement, a seconded employee keeps the French scheme for three years, renewable once (CLEISS, the French centre for European and international social security liaison); an employee hired locally contributes to the Gibraltar scheme, like anyone carrying on salaried activity in Gibraltar (Income Tax Office).

Official amounts are expressed in pounds sterling. The Chief Minister cites financial services, gaming operators and maritime businesses among the sectors recruiting specialist skills. Corporation tax is 15% since 1 July 2024.

The provisional application of the EU-UK agreement changes the goods regime: according to the budget address, a transaction tax replaces import duties, at 15% in the first year, 16% the next, then at least 17%. The Gibraltar page and the page retiring in Gibraltar complement these benchmarks.