We certainly live in exciting times. The prospect of moving to Gibraltar from the UK is worth considering. Gibraltar blends UK culture with a distinct Mediterranean flair. With its gorgeous landscapes, beautiful climate, and bustling business environment there are many reasons to consider Gibraltar as your #1 destination. Before taking this life-changing step, getting all your proverbial ducks in a row is essential.
You may be seeking your retirement in Gibraltar or want to live in Gibraltar for a better life. Gibraltar is a British overseas territory snugly located on the southernmost tip of the Iberian Peninsula. As a UK citizen, you have the right to work and live in Gibraltar, making the transition much smoother. Today, we will consider seven essential tips for a smooth transition from the UK to Gibraltar.
Check It out before You Relocate
Conducting due diligence before uprooting yourself and making a move is essential. It’s the sensible approach to adopt. Gibraltar is fascinating. It’s a unique enclave filled with oddities and eccentricities and a distinctive culture. While the language is the same, it takes some getting used to. It presents an enticing alternative to the United Kingdom, but certainly only for some. Many folks visited Gibraltar and had a grand old time, but they prefer the characteristic appeal of Blighty.
These folks choose not to go forward with residency in Gibraltar. Your decision is based on various factors, notably your propensity for change. If you decide to take the plunge, will you rent or buy real estate? Relocation experts recommend renting before you purchase because you don’t know how things will turn out over time. It’s better, safer, and financially prudent to rent for a short time before you drop anchor and call Gibraltar your home.
Are You a UK Tax Resident?
Tax is a complex topic to talk about. It conjures up all sorts of fears that people tend to eschew. But, it’s essential to understand whether you will be regarded as a United Kingdom tax resident during a specific tax year. It all boils down to how many days you are physically present in the United Kingdom. There are, of course, other factors to consider. These include your social connections, working life, family, property, etc.
Fortunately, the Residency Test (UK 2013) makes it easy. You can quickly ascertain when you become a non-resident. The preferable date to exit the UK is April 5, but other factors must be considered. If you are planning your retirement in Gibraltar, there may be some tax-related questions you need to consider. Experts strongly caution anyone who wants to live in Gibraltar to consult a tax professional.
United Kingdom Inheritance and Domicile Laws
Gibraltar doesn’t have any inheritance tax. However, obtaining a Gibraltar residency certificate or moving to Gibraltar from the UK does not exempt you from paying inheritance taxes. If you have a UK domicile, owing to your father choosing the UK as a permanent home, you are liable for UK inheritance taxes on the whole estate. It’s a legal minefield to navigate.
Fortunately, you may be able to avoid UK inheritance taxes if you live in Gibraltar for five years as a non-tax resident. But if you have strong ties to the UK through family, business, real estate, or income, it will prove difficult to avoid the UK inheritance tax.
Expatriate Insurance
Insurance policies are another consideration if you plan to live in Gibraltar. Remember, your current insurance coverage may be inadequate in terms of continuity of coverage. Take the necessary time to gloss over your insurance coverage. It must remain in effect after you leave the United Kingdom. You must have sufficient insurance coverage to guarantee that your dependents can sustain their living standards in the event of a disaster. It is always prudent to consult a financial professional regarding your requirements. Contemplate various high-quality policies to protect you and your loved ones.
What About Forex Considerations?
Typically, currency fluctuations must be considered whenever you visit another country. A big pro of moving from the UK to Gibraltar is the GBP. It is still used in Gibraltar. This eliminates many headaches that you would otherwise have to contend with. Imagine going from the UK to a country with a strong currency that eats into your £s supply, reducing your net worth. It’s a bugbear that you can avoid by moving from the UK to Gibraltar. You can retain wealth in GBP even when moving to Gibraltar.
Cost of Living in Gibraltar
Many people haphazardly assume that the absence of VAT means that Gibraltar is an affordable place to reside. This is not the case. The living costs in Gibraltar are approximately 1.05 times more costly than the equivalent in the United Kingdom. Gibraltar is the #4 most costly place to drop anchor in the UK and its overseas territories. This needs to be borne in mind when you consider moving to Gibraltar. For example, if you have £250,000 available for retirement in Gibraltar, that is the equivalent of £238,000 (1.05 X multiple). Factor this into the equation when you plan on relocating to Gibraltar.
Social Activities in Gibraltar
When moving to Gibraltar from the UK, you may be concerned about the type of social life you can expect. It’s often difficult to make new friends when you’re an adult, but that’s not necessarily the case in Gibraltar. You can enjoy a fantastic social life with relative ease in Gibraltar. The country has a sprawling arts and cultural scene featuring a large and sizable variety of sports facilities (including a sublime football team) and plenty of tourist hotspots to keep you entertained. Plus, it is the Grand Central of culinary delights, with all sorts of foodie favorites for the most discerning palates. You will never be wanting for social activities in Gibraltar – that’s a guarantee. According to the UN, Gibraltar has the world’s fifth highest population density, with 34000 people living in 6km2 of space. Meeting people is a breeze!
