GIBRALTAR PROPERTY GUIDE

The following is an outline Gibraltar property guide and further advice should be sought on any matters of interest.

1. In whose name should a transaction proceed?

Any person from any nationality may purchase property in Gibraltar, as well as Companies.

2. Title

In all modern developments in Gibraltar the land is owned by the Government of Gibraltar (“GOG”) which grants a lease to the developer who will then grant an underlease to a purchaser.

3. Management Company

A management company manages the development as a whole and is usually owned by the purchasers who contribute to the running costs of the development by way of service charges payable quarterly, biannually or annually in advance.

4. Capital Gains Tax

There are no capital gains taxes in Gibraltar and on the sale of property any profit made is free of all taxation provided that the vendor is not actually trading in property in which case the Commissioner of Income Tax may declare the vendor to be assessable to income tax.

5. The Conveyancing Process

This involves the transfer of good title or ownership from one party to another. The following outline displays the process:

a. Purchaser’s solicitor receives draft contract and copies of Title Deeds relating to the property.

b. Purchaser’s solicitor makes preliminary enquiries concerning the property, management company, sale or deposits.

c. Purchaser makes a mortgage application.

d. Purchaser’s solicitor conducts a land registry search to ensure “Good Title”.

e. Contracts are exchanged and a completion date set.

This process usually takes 6-8 weeks subject to mortgage.

6. Costs of purchase

Legal fees are usually based on scale fees although a complicated transaction may be charged on time.

Disbursements include the following:

a. Stamp duty @ 1.26% of price on purchase and 0.13% of facility on mortgages.

b. Supreme Court Registration Fee @ £20 - £40 per document.

c. Land Registry Registration Fee @ £52 per original document and 50p per duplicate.

7. Tax Relief

Full mortgage interest relief is given against income received in Gibraltar making it an advantage to purchase by obtaining a loan facility. Relief may also be obtained on payments made towards an endowment policy making endowment mortgages attractive to the homebuyer.

Contact : Albert J Isola : Elaine Bingham