Purchasing real estate in Gibraltar is quite expensive due to the country being quite small, and hence their lack of land supply. Housing Advisory Council is the body that deals with the housing market of Gibraltar. 

The majority of the real estate found in Gibraltar arent big establishments but rather small properties and apartments. The facilities provided to them are shared and are usually supervised by a management company. 

The company’s job is to adhere to all the needs of the establishment and ensure that everything is working fine. Running costs are paid by the occupants of the establishment. 

Who Can Purchase Real Estate in Gibraltar? 

The real estate capital of Gibraltar is a place quite a few people wish to invest in due to the various boons that come along with it. Buying real estate in Gibraltar is quite similar to the procedure allowed in the UK. 

There are two types of markets- the local market and the open market. Everyone is entitled to purchase property that is in the open market. EU citizens have the benefit of holding the right to stay in Gibraltar. Foreigners on the other hand can live in Gibraltar only if their visa and employment stature are in accordance with the rules of Gibraltar. 

In the case of the open market in Gibraltar, no defined criterion is required for an individual to invest in the property. On purchasing the property, the individual can stay in Gibraltar according to the residency rules. 

On the other hand, we have the local market in Gibraltar. In this market, a certain criterion exists in order for an individual to purchase real estate in Gibraltar. The criterion includes the individual residing for a minimum of 3 years in Gibraltar before they can make the purchase. 

Finding Real Estate to Purchase in Gibraltar

Though there are quite a few sites that provide the real estate available, it is always suggested to go through a real estate agent who can provide better guidance on both the properties available in one’s price range as well as the legal procedures to follow while buying it.

While comparing the additional costs to the purchased real estate in Gibraltar with that of other countries in the world, the costs are quite low. 

Stamp duty is expected to be paid, which lies in the range of 0% to 3.5%. This is to be paid on completion of the purchase. The stamp duty is payable on the price of the real estate while including its parking space. Removable fixtures and other types of fittings are included and should be purchased by the individual on their own if they fancy it. 

There is also a legal fee that needs to be paid. The cost lies in the range between £500 and 0.5% of the price of the real estate. In addition to this extra cost, land registration costs around £175. Disbursement fees and Commissioner’s fees are some other fees that need to be paid. These fees lie in the range between £20 and £40. 

A benefit that many Gibraltar property owners have is that they do not have to pay any property holding tax, estate duty, estate planning tax, or even wealth tax. Only an income tax is to be paid by them on the gross total of the rental profits the owner secures. Corporate tax is only applied if a company owns the property. As of now, the tax is valued at 10% of the gross rental profits.

Connecting Utilities

If one wishes to live in the purchased real estate or let it out to someone else, it is important to have the utilities connected to it. There are different offices that require to be visited in order to get your estate connected to the individual utilities. 

To get your water connected, you must visit the AquaGib office. To get your electricity and telecommunication networks set up, you must go to the Gibelec and Gibtel offices respectively. 

The offices will require the individual to show proof of one’s identity such as the passport, bank information, and the title deed to the purchased real estate. In the case where an individual is not able to get all of this done on their own, there are companies that get these utilities connected for them at the cost of a small fee. 

Mortgage in Gibraltar

A common question that a foreigner wishing to invest in real estate in Gibraltar would be wondering is if he or she is entitled to a mortgage. There are quite a few international banks in Gibraltar and hence yes it is possible. If that doesn’t work in your favor, there are plenty of lending institutions in Gibraltar that help out with mortgages.

The famous Gibraltar mortgage tax relief is one that is used by many and applies to its interest payments up to a maximum value of £1,500 per year. In case the buyer is purchasing real estate for the first time, they allow a deduction of £7,500. This relief also applies to residential properties valued up to a maximum of £350,000.

It is also suggested to use a mortgage calculator so as to avail the best mortgage rates while purchasing real estate in Gibraltar. Many banks provide this service. The mortgage rate can also be calculated online with the aid of an online mortgage calculator.

A lot of people have gained immense interest in investing in property in Gibraltar due to its great climate, international exposure, and even the benefit of residency that comes along with buying property here. 

Though purchasing real estate here is quite expensive, it is a decision many are willing to make as its long-term benefits are plenty. The elimination of quite a few taxes, which is to be paid in lump sums in other countries is evaded here all thanks to the residency and real estate rules of Gibraltar.

If you are planning to buy real estate in Gibraltar, here at MUNDO we have a reliable partner ready to help you with this issue. Just contact us! 

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