Gibraltar Approved Schemes

The Gibraltar Government is encouraging private sector employers to provide pension benefits for their employees and will shortly, together with the unions, be enforcing this more strongly.

In Gibraltar, tax relief on pension contributions made by employees is combined with relief on life assurance premiums and is limited to one sixth of total income. There is no maximum for the employer, however, apart from the limits on the maximum benefits that can be paid. Of Gibraltar's two tax systems, Allowance-based and Gross Income-based, tax relief is only available under the Allowance-based system.

Since 1st July 2006, pensions paid to anyone over the age of 60 are tax free. Also, due to the lack of annuity providers, the government has allowed all of the fund to be paid out as a tax-free cash sum.

In October 2005, the Gibraltar Government set up the Gibraltar Provident Trust (no.3) Pensions Scheme which is a low-cost option to which employers can contribute. Membership of the scheme is confined to employees of participating employers and excludes proprietary directors (directors who alone, or with spouse and children, have more than 20 per cent of the voting rights in the company).

As an alternative, STM Fidecs Pension Trustees can provide a pension solution which offers greater flexibility, security and service levels. Flexibility comes through investment choices, within the constraints detailed in the Income Tax Office practice notes, and improved security through holding pension fund assets within a trust structure.

STM Fidecs Pension Trustees are also able to provide information about the individual pension schemes, including details of the individual member's funds through a secure web site.

For further information about Gibraltar Approved Schemes see our Gibraltar Schemes - FAQs, email us or telephone David Erhardt or Jane Caulfield on (+350) 200 45877.Back to Top