Taxation of Pension Income

On 1st July 2006, the Gibraltar Government introduced some significant changes in the tax treatment of pension benefits received from Gibraltar Commissioner of Income Tax approved occupational pension schemes.

For locals aged 60 or over, pension income is taxed at 0%. This means that if your pension is your sole source of income it will be tax-free. This is the case whether the income comes from a final salary scheme or an annuity purchased with the proceeds of an occupational money purchase scheme or a retirement annuity contract.