Property in Gibraltar

Buying Property in Gibraltar

The small area of land that surrounds and includes the famous Rock, Gibraltar is a self-governing British Colony. The total area is a little less than six square miles and overlooks the Straights of Gibraltar. Buying property in Gibraltar is not a difficult process, but living there for any length of time may be a bit harder.

As part of Great Britain, British citizens are allowed to live and work here without a permit. By virtue of Britain’s membership, Gibraltar is also a member of the European Union. As such, EU citizens are allowed to enter, work and live there. Initially, they will receive a 6-month visa and then a 5 year renewable work permit, pending employment. Non EU citizens will have a much more difficult time, as they will have to do jobs that no one else there can or will do, or they have to be a high net worth person willing to spend a lot of time and money in Gibraltar.

Once you have found a property to purchase, negotiate a price with the seller and draw up a pre-contract. This is a formal reservation and is not legally binding, but you will be expected to put down 2% of the purchase price in escrow in order to reserve the property.

The seller’s lawyer typically draws up the first draft of the contract and this is revised by mutual consent until a final copy is agreed to by both parties. There are plenty of lawyers in Gibraltar, so finding one to help with this aspect should not be difficult.

When the final contract is signed, the purchaser pays another 8 % of the sales price for a total down payment of 10%. The signature and payment make this a legally binding contract for both parties. Payment terms are then finalized and all duties are paid. The new owner then registers the property deed with Gibraltar’s Supreme Court and also with the Land Titles Registry. This process amounts to approximately £100 in costs.

In addition to the lawyer’s fees, there is a Stamp Duty of 1.26% of the property value plus .13% on any mortgage obtained.