HM Government of Gibraltar have published a Bill proposing changes to tax exemptions for accommodation provided to relocated employees. 

Here’s what’s changing:

• Shorter exemption period: The current 7-year tax exemption for employer-provided accommodation will be reduced to 4 years. 
   
• One-time eligibility: An employee can only benefit from this exemption once. 
   
• Stricter criteria: Only “specific employees” (those with skills not readily available locally, or crucial to economic development) may qualify—this is to be determined by the Commissioner of Income Tax. 
   
• Must reside in Gibraltar: The exemption no longer applies to those commuting in; the employee must have moved to Gibraltar itself. 
   
• More compliance required: Employers must apply to the Commissioner, report any changes in accommodation, and include exempted benefits in annual returns (Form P10/P10A). 

Our Take? These proposed changes signal a continued tightening of tax policy—fewer blanket exemptions, more targeted reliefs.

If you need assistance with your payroll function and advice on how this could affect your workforce and compliance obligations, drop Kathy Adamberry or one of her team a line.