What is the 2023 Gibraltar Housing Amendment?

Many property owners in Gibraltar are unaware that recent legislative changes may allow their residency-restricted home to be sold on the open market.  For qualifying vendors, this represents a major shift in what has traditionally been a tightly controlled resale environment.  However, the rules are specific, and eligibility depends on factors such as ownership length and the age of the underlease - making informed advice critical at the outset.

This guide explains exactly what the rules are, who qualifies, and how you can sell your home for its true open-market value using this new pathway.

What Are Residency-Restricted Properties?

Many homes in Gibraltar - especially those built through government-assisted or local market schemes - include restrictions in their underleases.  These “restricted market” covenants:

• Require buyers to live in Gibraltar (commonly via a 3-year residency rule) before they can purchase; and

• Often prevent properties from being resold freely on the open market for speculative or investment purposes.

• Possibly restrcit the sale to British Citizens (be it British Gibraltarian or other British) only.

While these rules served to protect local housing for residential use, they also limited owners’ ability to unlock the full value of their property.

What Changed Under the 2023 Amendment?

In April 2023, the Government of Gibraltar confirmed a key change affecting many affordable/ residency-restricted housing estates:

Resale restrictions will no longer automatically apply if both of the following criteria are met:

• The property’s underlease was granted at least 30 years ago (1995 or earlier at time of writing); and
• The vendor has owned the property for at least 10 years prior to the proposed sale.

This means that, for qualifying flats, the usual restrictions can be lifted, allowing vendors to sell on the open market at true market value instead of being constrained by local-market pricing.

What This Means for Vendors

Before this change, vendors could typically only sell to eligibility-qualified buyers - usually those with 3 years’ continuous residency who met Local Market rules - and at a price influenced by those restrictions.  That often meant significant value was left on the table.

Now, if your property qualifies:

✅  You can market it freely to all buyers (including those who don’t meet residency-restricted criteria).
✅  You can seek open-market prices, often significantly higher than local-market valuations.
✅  You can benefit from true supply-and-demand pricing instead of restriction-driven price caps.

In short - potentially higher sale prices and faster sales cycles.

Who Qualifies to Sell on the Open Market?

To be eligible for lifting the resale restriction under the current rules:

1. Underlease Must Be Old Enough

The property’s underlease must have been granted at least 30 years before your intended sale date.

This criterion makes it especially relevant for many of Gibraltar’s older affordable estates where leases were first issued in the 1980s and early 1990s.

2. Minimum Ownership Period

You must have owned the property for at least 10 years.

This protects against short-term speculation and ensures that the benefit applies to long-term residents rather than traders.

3. Consent Still Required

Even if you meet the criteria above, you still need Government consent for the sale, but the key difference is that the usual resale restriction clause can be waived.  Land Property Services will verify whether your particular property qualifies before approval is granted.

Step-by-Step: How to Sell Using the New Rules

Here’s how the process typically works with Richardsons guiding you at every stage:

1. Initial Eligibility Check

✅What we do:
We review your title and underlease to confirm:

• When the underlease was granted; and

• How long you’ve owned the home.

This is the first key step. If either of the qualifying periods (30 or 10 years) is not met, the property may still be restricted.

Pro tip: Even if your property is close to qualifying, there may be documentary or transitional routes worth exploring.

2. Valuation & Market Strategy

✅What we do:
We conduct a professional market appraisal based on unrestricted market comparables (not restricted ones).
We’ll assess whether open-market pricing is appropriate or whether a niche restricted-market strategy makes more sense.

This step ensures you know the true market value before going to contract.

3. Government Consent Application

✅What we do:
We prepare and submit the application to Land Property Services on your behalf, including:

• Supporting evidence of ownership and underlease age;

• Legal and valuation documentation;

• Any declarations necessary for consent.

Because the rule change is relatively new, having expert guidance here is critical to avoid delays.

4. Marketing the Property

✅What we do:
Once consent is being processed or granted, we market the property across:

• Core property portals and local networks

• International investor channels (where appropriate)

• Targeted campaigns for qualified buyers who may see the upgraded value potential

Our position as a trusted expert in restricted vs open market sales maximises reach and results.

5. Negotiation & Sale Completion

✅What we do:

• Negotiate offers on your behalf

• Advise on structuring terms with consideration of the consent status

• Coordinate with your legal team for smooth completion

Even when properties qualify for open-market sale, the timing of consent relative to contract exchange matters - and we ensure it’s managed strategically.

Common Questions from Vendors

“Does this apply to all restricted properties?”

No - only those where the underlease was issued at least 30 years ago and you’ve owned it for at least 10 years. Properties newer than that remain in the restricted marketunless a separate Government policy change applies.

“Is there any guarantee of open-market approval?”

No - but if the criteria are met, Land Property Services generally verifies eligibility and lifts the restriction. Government still retains oversight and final approval.

“Does this affect stamp duty or taxes?”

Selling on the open market may have different tax implications (e.g., capital gains, income tax rules), and we can recommend specialist legal or tax advisers as needed. This guide focuses on sale eligibility rather than tax advice.

Why Use Richardsons?

Navigating restricted properties and newly introduced statutory pathways is not standard estate agency work. At Richardsons we offer:

• Legislative expertise and hands-on experience with eligibility applications

• Proven marketing strategies for both open and restricted markets

• Guided negotiation to ensure you achieve the best possible price

• A client-first approach that demystifies legal processes and supports you from valuation through to completion