Gibraltar

Overview

Last reviewed - 30 July 2020

Gibraltar (the Rock) is a peninsula situated at the southern tip of Spain, facing the northern coast of Africa and dominating the western entrance to the Mediterranean. Gibraltar's strategic importance has given it a long and eventful history and an influence on world events.

The Rock now has approximately 30,000 inhabitants. English is the official language, but most Gibraltarians are bilingual in English and Spanish. The currency is the Gibraltar pound (GIP), which is equal to the British pound (GBP).

On 31 January 2020 Gibraltar together with the United Kingdom left the European Union (“EU”). It is currently in a transition period until 31 December 2020 where it continues enjoy single market access and is subject to EU rules.

Gibraltar has always enjoyed a special relationship with the EU as it was within the union as a European territory for whose external relations Britain was responsible, but it was relieved from the common customs tariff, the common agricultural policy, and the harmonisation of turnover taxes and, in particular, value-added tax (VAT).

Negotiations about the United Kingdom and Gibraltar’s future relationship with the EU are currently ongoing. Gibraltar for the transition period at least forms part of the Single European Market for services, including financial services. Gibraltar’s financial institutions are able to take full advantage of this position and are able to 'passport' their services throughout the European Economic Area, and therefore have access to a market of over 500 million people

Gibraltar's economy is based on services, the drivers of which have changed dramatically as a result of the significant run-down of the Ministry of Defence establishment and the military base. Traditionally, the local labour force had, in the main, provided support services to the Ministry of Defence, augmented by the retail sector and tourism. Developments over the last 20 years, in particular, have shifted the economic drivers from public to private sector control.

The main sectors of the economy today are financial services, e-online gaming, tourism, a vibrant retail shopping district, and port services, including ship repair and ship conversion. New sectors being promoted are light manufacturing, telecommunications, and import/export operations.

Constitutionally, Gibraltar is an overseas territory of the United Kingdom with internal self-government, except in matters of defence, internal security, and foreign affairs, which are the responsibility of the United Kingdom. The legal system is based on English Common Law as well as on local statute.

PwC has been practising in Gibraltar for over 40 years. It is the largest accountancy firm in Gibraltar, with over 80 partners and staff. Our tax experts provide support to businesses of all sizes and types and from all industries on current tax issues and in resolving the complex issues involved in tax planning.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

10 (utility and energy providers and corp.'s abusing a dominant position pay a rate of 20%)

Corporate income tax (CIT) due dates
CIT return due date

CIT returns are due nine months after the date of the company's financial year end.

CIT final payment due date

The final balance (being the actual tax liability less any payments made on account) is due by the date of filing the return (i.e. nine months after the date of the company's financial year end).

CIT estimated payment due dates

Companies are required to make payments on account of future liabilities by 28 February and 30 September in each calendar year.

Personal income tax (PIT) rates
Headline PIT rate (%)

Lower of the Allowances Based system (39%) and Gross Income Based system (28%)

Personal income tax (PIT) due dates
PIT return due date

30 November

PIT final payment due date

30 November

PIT estimated payment due dates

PAYE for emoluments.

Two equal instalments on 31 January and 30 June for other income.

Value-added tax (VAT) rates
Standard VAT rate (%)

NA

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

NA

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

NA

Individual capital gains tax rate (%)

NA

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

NA

Gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.