Guide to living and working in Gibraltar

Gibraltar

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Country Overview

 

Population

27,967

Unemployment Rate

2%

Area

5.8 sq km (2.25 sq miles)

GDP

€0.68bn / $1.06bn

GDP per head

€19,001 / $38,272

Capital

Gibraltar City

Major language

English, Spanish

Life Expectancy (UN)

76 years (men)

82 years (women)

Monetary unit

1 GIP (£) = 100 pence

Internet domain

.gi

International dialing code

+350

 


 
Gibraltar has an extensive shipping trade, offshore banking and hosts many international conferences. British military presence has sharply decreased and now contributes about 7% to the local economy, compared with 60% in 1984. The financial sector, tourism (almost 5 million visitors in 1998), shipping services fees, and duties on consumer goods also generate revenue. The financial, shipping and tourism sectors each contribute 25-30% of GDP, . Ttelecommunications accounts for a further 10%. In recent years, Gibraltar has seen major structural change from a public to a private sector economy. , but cHowever, changes in government spending still have a major impact on employment the level sof employment.


The Economy


Industries include: tourism, banking and finance, ship repairing, and tobacco.

 

Getting a job

Overview of the labour market:

Gibraltar has a base labour force of around 17,000 workers. The expansion of the private sector and the contraction of the public sector have created a mismatch of skills. Most workers released from traditional public sector jobs, mainly the Ministry of Defence, are often not equipped with the skills needed to find employment in tourism, financial services and service sectors; all areas with growth potential. This skills mismatch is further aggravated by the impact of cross-border competition for employment in Gibraltar, particularly given the very high levels of unemployment found in the neighbouring areas of Spain and Morocco.

Evidence of emerging skill shortages comes from the substantial proportion of construction workers in Gibraltar who originate from the United Kingdom and Spain. There are high levels of recruitment of specialists from outside Gibraltar in other sectors, particularly the finance and gambling sectors. Large numbers of frontier workers (relative to the size of the Gibraltar job market) compete for jobs with local residents. These factors mean some Gibraltar residents have difficulties finding employment locally.

There is little labour mobility in Gibraltar given its physical size and peripheral position at the southernmost tip of Europe. There is a great need for training and re-training programmes to meet the required skills of the labour market, equipping the workforce with a wide range of skills and improved flexibility. The local labour market is volatile for two causes outside Gibraltar’s control; i) decisions made in London in respect of the size and make-up of the MOD establishment in Gibraltar, and ii) variations in the operation of the border with Spain, which fluctuate alongside changes in diplomatic relations.

Employment is dominated by service activities, with manufacturing of only minimal significance. The most important industry sectors are: the wholesale and retail trade, public administration and defence, construction, real estate, business activities, the gambling sector and financial intermediaries.

Applying for a job:

Curriculum vitae (CV): A CV should not be more than two pages long and jobs should be written down in chronological order, with the last job first. Leave out interests, referees and anything not associated with your experience and expertise. Include contact information and your date of birth. A photograph is not necessary, unless requested.

 

Conditions and rights

Working hours: The majority of companies work standard hours, i.e. 9 am to 6 pm Monday to Friday.
Public holidays: January 1, March 10, Good Friday, Easter Monday, May Day, Spring Bank Holiday - in May, June 16, Late Summer Bank Holiday - in August, 10 September, 25 December, 26 December, and December 31.

 

Contracts

Work permits

EU citizens: As part of the EU, Gibraltar allows members of EU nation states to enter, work, and live on the peninsula. They will initially receive a 6-month visa, and when that expires, a 5-year renewable work permit if they have found suitable employment, or started a business in the meantime.

‘New’ EU citizens: Under present legislation, nationals of the following EU/EEA member states require a work permit for employment in Gibraltar:

  • Until 30th April 2009: Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia. 
  • Until 31 December 2011: Bulgaria and Romania.

However, when a citizen of one of the above has worked in Gibraltar with a work permit for an uninterrupted period of 12 months or more, they do not need a work permit to get another job in Gibraltar.

Swiss nationals: do not require a work permit for employment in Gibraltar.

Non-EU nationals: must find a job that no native Gibraltarian is willing to undertake. A work permit and residence permit will be issued if this is the case, but for a period not exceeding 12 months. The prospective employer has to request the work permit before the start of the employment. The government does not usually encourage this, especially since there is a readily available Spanish workforce within easy commuting distance.

Residence Permits:

Only Gibraltarian and British citizens are allowed to live and work in Gibraltar without a residence permit. Nationals from other EU member states are issued residence permits upon providing proof that they will not become a burden to the state. Non-EU citizens will find it more difficult to obtain a residence permit in Gibraltar as they must first produce a work contract, and that can only be issued if the employer can prove that no Gibraltarian or EU citizen is able to do the job.

 

Tax, social security and healthcare

Taxation system:

For taxation purposes, an individual is either resident or non-resident in Gibraltar. Nationality is not a factor in determining tax status. An individual is considered resident in Gibraltar if he resides there for more than 183 days in any one tax year (which runs from the 1st July to the 30th June).

A non-resident individual will be taxed on income derived from, accrued in or received in Gibraltar. Payments from exempt or qualifying companies are tax-exempt, as is bank interest. Withholding taxes will be charged on payments from other Gibraltar companies , at 30% for an individual.

The new Gibraltar budget was announced in June 2007, and contained a number of changes affecting individual taxation as detailed below.

New Gross Income Based System:

Every taxpayer may choose between the normal system and the new Gross Income Based system, choosing whichever results in the lower tax. Gross Income Based system has no allowances and tax rates of:

  • 20% on first £25,000 income
  • 30% on next £75,000
  • 40% above £100,000

 

Tax rates (normal system):

Income Band (£)

Tax %

0 - 7,000

0%

7,001 - 16,000

30%

16,001+

40%

 

Existing Low Income Tax Credit of £275 per annum for those who earn less than £8,000 per annum is increased to £595 per annum and will now be paid through the PAYE Code. No person earning less than £7,000 per annum will pay tax.

Low Income Tax Credit is extended to those who earn between £8,000 and £19,500. In combination with widening the Standard Rate band, all these taxpayers will receive a benefit of at least £300 per annum, mostly through PAYE Code.

 

Social security system:

There are three contributory schemes of Social Insurance:

  • The Employment Injuries Insurance Scheme: only applies to employed persons. Regular weekly contributions provide cash benefits for those who are unable to work or are disabled because of an accident at work or certain industrial diseases, and for widows, widowers and certain other dependants of industrial casualties.
  • The Social Security Short-Term Benefits Scheme: provides, in return for regular weekly contributions, maternity grants, death grants, maternity allowance and unemployment benefit. Self-employed persons are not eligible to maternity allowance or unemployment benefit.
  • The Social Security Open Long-Term Benefits Scheme: provides, in return for regular weekly contributions, cash benefits on widowhood or on reaching retirement. There are also benefits for guardians of orphans. A married man’s contributions provide not only for his personal benefits but also for certain benefits for his wife and family.


Healthcare:

The Gibraltar Health Authority operates a Group Practice Medical Scheme whereby contributors to the system receive free health benefits. Contributors have their medical needs met either in Gibraltar or by outside providers, as arranged by the scheme. You will find general practice surgeons at the Health Centre, while more specialised services are located at the St. Bernard's Hospital. The latter has more than 180 beds and also offers outpatient services. Due to the size of the local population, some specialists cannot be maintained on a permanent basis. Therefore, highly specialised doctors such as paediatric neurosurgeons are flown in from the UK when necessary. The Health Authority also provides essential dental and ophthalmic services as well as subsidised medicine and house calls from a doctor.

 

Lifestyle

Although British citizens, most residents of the “Rock” hail originally from Malta, Portugal, Spain or Italy making for a highly multicultural society.  Despite the on going political issues over sovereignty between the UK & Spain, the frontier is now much more relaxed and entry and exit between the Spanish mainland and Gibraltar is relatively easy and quick. This means that working in Gibraltar and living on the coast of Spain is feasible.  Many expats that work on Gibraltar live in the chic area of Sotogrande where there is more choice of quality property. Also, it is easy to enjoy the benefits of the Costa del la Luz and Costa del Sol whilst working on the Rock.  The British infrastructure and English language make for an easy relocation, with healthcare and education systems that echoes those of the UK.