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Mortgages in Gibraltar

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 8, 2023

Mortgages in Gibraltar

The small island of Gibraltar, affectionately known as the Gateway to the Mediterranean, is a trendy tourist destination for many reasons. It boasts flourishing wildlife, a rich history, caves filled with wonder, and general natural beauty so it’s no wonder why many property seekers consider getting a mortgage here.

It’s a beautiful place to settle if you’re looking for somewhere safe and quiet, but it may not be for you if you’re looking for somewhere with a lot to do. But we imagine you’ve considered this already, so let’s explain how mortgages work in Gibraltar.

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The situation in Gibraltar

Gibraltar, as a British naval and air base, uses a similar legal system to the UK and has been under British control for the past three centuries. This makes it much easier for UK residents to get a mortgage – and Gilbraltar uses the same currency: the pound sterling.

That said, if you don’t have a work permit or a residency in Gibraltar, you must buy a property through the local government, and all property deeds have to be registered with the Supreme Court of Gibraltar.

Political issues

It’s essential for anyone considering moving to Gibraltar to understand its sensitive political situation. While having been under stable British control for the longest time, some Gibraltarians are not happy about being bystanders in their own decolonization.

At the time of writing, Spain has called for negotiations with the UK regarding its political and government status. Should some significant change occur, this could affect the laws regarding mortgages and the ease of entry UK residents currently experience.

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Banks in Gibraltar

Gibraltar banks are in a similar situation to European banks: lending is strict due to the recession. You must complete all the paperwork perfectly and meet all requirements to get a mortgage approved.


What you’ll need to get Gibraltar mortgages

There are always stringent requirements to adhere to if you want to get a mortgage in Gibraltar – like most EU countries.

If self-employed

If you’re self-employed, you need certain documents to secure your Gibraltar mortgage. These include:

  • Your last six months’ personal and business bank statements.
  • Your previous two years’ tax returns and audited accounts.

If your loan is under £500,000, however, you’ll only need an accountant’s certificate.

If employed

For those who are employed full-time or part-time, you must provide:

  • Your last P60.
  • Three months’ payslips.
  • Six months personal bank statement.

Having proof of income is vital to any loan application, and it makes sense when you consider how the bank has to ensure everyone has sufficient income to make the mortgage payments.

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Criteria for getting a mortgage loan

Gilbraltar banks will consider specific criteria before you are granted a loan, including:

  • Your current employment status.
  • Your income.
  • The size of your requested loan.
  • The country in which you’re domiciled.
  • Your age.
  • Whether or not you’re a first-time buyer.

As you can see, the evaluation is comprehensive to ensure you are a viable candidate for the mortgage.


Additional fees

Before buying a property in Gibraltar, you should note that there are several fees to pay. These include:

  • The stamp duty fee.
  • The Supreme Court Registration fee.
  • The Land Tiles Registry fee.
  • Reservation fee (more information below).


The terms of getting a loan in Gibraltar

Buyers have to view the property before making a purchase. Additionally, they’ll have to make a 2% reservation fee during the sale. That said, the cost will be refunded once the sale has been made.

Overall, Gibraltar offers great loan-to-value (or LTV for short) terms. You can get up to a maximum LTV of 80% for purchase or re-mortgage. And the minimum loan amount is £50 000, but it can go up to a maximum loan of £2 000 0000.

Gibraltar offers home buyers a long time to pay off their loans; in fact, it can stretch to 40 years or even until the age of 80.

Company mortgage loans, unlike residential lettings, have slightly lower offers. In that case, banks are generally willing to lend to a maximum of about 70% LTV.

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What to consider before taking out a mortgage

Mortgages are significant commitments, so you must consider your decision carefully before investing in a Gibraltar property – especially if this is your first time buying a home. You don’t want an investment you’ll regret.

One option, however, that has no leeway for contemplation is where you’d like to live in Gibraltar. The country is officially considered the third smallest country in the world and has a population of just 33 000 people. There might not be a lot of choices when it comes to location.

Unfortunately, as you may already have deduced, the country is exceptionally densely populated (it has the 5th highest population density). And for further context, it’s 231 times smaller than London. It takes just over an hour to walk from the southernmost to the northernmost point of the country.

Mortgage Tips

However, if the great sunny weather, friendly people, and rich culture are enough to entice you despite the size and population density, then consider:

  • What mortgage type best suits you (we’ll cover the two choices in the next section)
  • If you plan on purchasing a residential property, consider much the cost of living in Gibraltar is, compared to where you are now.
  • The lender’s terms and conditions. Always read every document you sign very carefully to understand what you’re getting yourself into fully.
  • Never take a loan from someone claiming to be part of a team of mortgage brokers who are not officially registered with the Gibraltar Financial Services Commission. You’ll never know whether they’ll meet their end of the bargain.

And when in doubt, contact mortgage professionals, like our financial services team at Loancorp, who are ready and willing to offer you safe, reliable, and expert advice on how to get a mortgage in Gilbraltar. You can give us a call on 0808 301 95909.


Types of mortgages in Gibraltar

Deciding on the right mortgage is an important decision, and it isn’t always easy. You’ll have to consider your circumstances, financial situation, and other factors. We hope to make it easier for you by going through your options for you.

The capital and interest mortgage (also known as a repayment mortgage)

These monthly repayments cover both the interest rates and the capital of the loan. At the start of the term, a large portion of the payment is used to cover interest, and only a small amount is used to reduce the mortgage. However, over time, you will use more of the monthly payments to repay borrowed capital.

A repayment mortgage guarantees, as long as monthly payments are made timeously, that they’ll be paid off at the end of the mortgage term.

Interest-only mortgage (holiday on capital)

You might also opt for an interest-only mortgage. Unlike a repayment mortgage, your payments will only cover the interest rates, and the actual loan amount is repaid through funding placed in long-term investments. The idea is to make enough to pay off the mortgage once the time arrives.

This option is ideal for those who may have a lot of money in investments and wish to wait for them to mature further. It’s a riskier choice for the average buyer when compared to repayment mortgages. And it might be good to have a savings plan as a backup if you’re relying solely on investments to make the payment.

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Mortgage interest payments relief

You can get mortgage interest payments relief on Gilbrator residential properties that the buyer lives in, to a maximum amount of £350,000.


We’re here to help

Our mortgage team would love to help you find your perfect home in Gilbraltar. Whether you’re looking for an apartment, a family home, or an office space, trust that we’ve got you covered. Give us a call on 0808 301 9509 or fill out this short form for a comprehensive talk with one of our advisors.

Can a British citizen buy property in Gibraltar?

British citizens have the right to live in Gibraltar and, therefore, can buy property. Gibraltar has been under British control for many centuries and is not under Spanish jurisdiction.

Can I retire to Gibraltar from the UK?

Yes, as a UK citizen, you have full rights to retire to Gibraltar from the UK, so you will not need any residency permit.

Can I get a mortgage in Spain as a UK resident?

You can get a mortgage in Spain as a UK resident, but it will be limited to around 60% LTV, but that said, Gibraltar is not officially a part of Spain, even though it’s nearby and it’s a British territory subject to British legislation.

Do you pay tax if you live in Gibraltar?

Yes, people living in Gibraltar will have to pay taxes, however, it’s just income tax and there is no sales, value-added, capital gains, or wealth tax.

Contact us now for further information and get started with an application

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