The Gibraltar Federation of Small Businesses have issued a statement raising concerns over the Government’s proposed residency policy.

A statement from the Gibraltar Federation of Small Businesses follows below:

The Gibraltar Federation of Small Businesses (GFSB) has made detailed written submissions  to the Minster for Business regarding the Government’s Residency Policy.  

While recognising the Government’s objective of protecting public services and ensuring  long-term fiscal sustainability, the GFSB says the proposed measures represent a significant  change to Gibraltar’s previous residency policy.  

The Federation has outlined a number of concerns regarding the Policy, highlighting that  elements of the proposals could make doing business in Gibraltar harder, make recruitment  and retention more difficult with the potential for wider negative effects on member  businesses.  

Among the Federation’s principal concerns are that;  

- The proposed minimum earnings threshold of £37,500 for residency. 67% of all jobs  in Gibraltar fall below this threshold, raising concerns about its potential impact on  employers’ ability to attract and retain staff.  

- The policy will have most impact on British nationals living and working in Gibraltar  who currently account for 16.3% of resident full-time workers, the largest grouping  in Gibraltar – larger than all other nationality groups put together*.  

- Proposed arrangements for new businesses and self-employed individuals, requiring  upfront payment of social insurance and tax could discourage entrepreneurship and  make Gibraltar a less attractive place to establish new businesses.  

- The residency age ceiling of 55 is comparatively young when compared to retirement  ages in the private sector and elsewhere in Europe.  

 Greater clarity, including specific criteria, should be provided for the exercise of  Ministerial discretion.  

Importantly, the GFSB has asked the Government to share the data, modelling and any  impact assessment underpinning the proposals to enable businesses and the wider  community to better understand the scale of the challenge the policy seeks to address.  

A spokesperson for the GFSB commented;  

“We recognise that the Government is trying to strike a careful balance between protecting  public services and supporting Gibraltar’s long-term prosperity. Our response has been  prepared in that spirit. 

Our concern is that some of the proposed measures will make it harder for businesses to  recruit and retain staff, already considered to be a very substantial challenge in Gibraltar, at  a time when employers are already facing significant pressures and preparing for major  changes associated with the Treaty.  

Whilst the Treaty may result in increased interest in Gibraltar residency, improved border  fluidity under the Treaty may result in an outflow of Gibraltar residents.  

We believe this is an important conversation for Gibraltar. By sharing the data and analysis  behind the policy, Government can help businesses and the wider community better  understand the rationale for these proposals and contribute constructively to the  discussion.”  

The Federation says it remains committed to working collaboratively with the Government  to help develop a residency framework that protects Gibraltar’s public services while  ensuring the jurisdiction remains an attractive place to live, work, invest and establish  businesses.  

The GFSB’s full representations on the proposed Residency Policy is available to members.