3 Year Residency
The three-year residency rule applies to certain property developments in Gibraltar, and there can often be confusion about who qualifies to purchase these homes. These “restricted” developments are built on government-owned land and come with strict eligibility criteria, especially when it comes to reselling the properties. Originally designed as affordable housing to help Gibraltar residents enter the property market, these homes offer a more accessible entry point for first-time buyers.
When the government initially sold these properties, eligibility criteria included being on the council housing waiting list or meeting other specific requirements. After owning the property for three years, the owner has the option to sell it, but a percentage of the profits must be paid back to the government, as part of the government’s affordable housing initiative. Additionally, these homes cannot be rented out for profit, meaning letting the property is strictly prohibited. The primary purpose of these developments is to provide stable housing for residents, rather than being a source of rental income.
When the government originally sold these properties, eligibility criteria included being on the council housing waiting list, among other requirements. After owning the home for three years, the owner can choose to sell the property, but a percentage of the profits must be paid back to the government. These homes can only be used as a residence and cannot be rented out for financial gain, making letting these properties strictly prohibited.
Basic Eligibility Requirements:
- UK-born residents: Eligible after living in Gibraltar for at least three consecutive years. Proof includes utility bills, rental agreements, or deeds.
- Gibraltar-born residents: Eligible after living in Gibraltar for one year or more. Proof of residency must be provided.
The design and quality of Gibraltar’s restricted housing developments are generally of a high standard, with attention paid to both functionality and comfort. Newer builds in these developments often feature modern conveniences such as double-glazing as standard, helping with insulation and energy efficiency. The apartments are typically designed with simple, efficient layouts that maximize space, offering practical living solutions for families and individuals alike.
In addition to the homes themselves, these developments also include private parking spaces to cater to residents with vehicles. The amenities in these areas are generally basic but functional. Many developments include playgrounds for children, along with shared podium areas where residents can socialize or relax. The majority of these properties have leases of 149 years, which are owned and managed by property management companies, ensuring that the developments are properly maintained over the long term.
Frequently Asked Questions
Who is eligible to purchase a property within Three-Year Residency developments?
These properties are reserved for Gibraltar residents. To qualify, buyers must meet the following requirements:
- Gibraltar-born residents: Must provide proof of having lived at a Gibraltar address for at least one consecutive year.
- UK-born residents: Must have lived in Gibraltar for a minimum of three consecutive years and provide evidence such as utility bills, rental agreements, or property deeds.
Can I rent out my property in a Three-Year Residency development?
No, renting out properties within a Three-Year Residency development is strictly prohibited. These homes are explicitly designated for use as a primary residence by the owner and, therefore, cannot be leased or rented out for financial gain. This restriction ensures that the properties are used as intended and maintains the integrity of the residency program.
What happens if I want to sell my property after three years?
After fulfilling the minimum ownership requirement of three years, you are permitted to sell your property. However, it's important to note that a percentage of the profits generated from the sale may be required to be paid back to the Government, as stipulated in the original purchase agreement. This clause is a key component of the agreement and should be thoroughly understood before proceeding with the sale.
How can we help you
Arrange a consultation with one of our sales and lettings advisers today.
