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Gibraltar
Corporate - Other taxes
Last reviewed - 22 August 2026Value-added tax (VAT)
There is no VAT in Gibraltar.
Transaction Tax and Excise Duties
Under Article 248 of the UK-EU Agreement in respect of Gibraltar, Gibraltar has introduced a new indirect tax regime comprising a Transaction Tax (TT) and Excise Duties. The TT generally applies to goods imported or manufactured for sale in Gibraltar and to certain other categories of goods specified under the customs and traveller allowance rules.
The regime is not intended to operate as a VAT system and does not automatically subject all private purchases made in the EU for personal use to taxation on entry into Gibraltar. The standard TT rate is subject to a minimum rate aligned with the lowest standard VAT rate applied in an EU Member State, currently 17%, with transitional rates of 15% in year one and 16% in year two before full alignment from year three onwards.
Gibraltar may apply reduced and super reduced rates in specified items under Appendix 1 of Annex 24 of the UK-EU Agreement:
- A reduced rate of not less than 5% for specified goods, including agricultural products, plants and floriculture products, children's clothing and footwear, child car seats, bicycles, and works of art.
- A super-reduced rate at 0% for certain essential goods and services, including food products (excluding alcoholic beverages), water supplies, pharmaceutical products, medical and disability equipment, books, newspapers, and solar panels.
The Agreement further provides for the introduction of Excise Duties on products currently subject to harmonised excise duty regimes within the EU. For most excisable goods, Gibraltar will be required to align its tax burden progressively with that applicable in Spain. Following a three-year transitional period, the rates applied in Gibraltar may not differ from those applied in Spain by more than prescribed thresholds.
Specific rules apply to hydrocarbons and tobacco products. Tax rates on hydrocarbons will be required to reach Spanish levels within three years of the Agreement entering into force. For tobacco products, EU minimum excise duty rates will apply from commencement. In the case of cigarettes, excise duty may not be lower than EUR 115 per 1,000 cigarettes, and the retail selling price in Gibraltar may not be more than EUR 0.80 per pack, or 15%, lower than the equivalent retail price in mainland Spain and the Balearic Islands.
An independent consultative body will monitor pricing and taxation differences between Gibraltar and neighbouring territories and may recommend adjustments to TT and Special Tax rates where significant market distortions arise. The consultative body recommendations are intended to be binding. Failure to implement such recommendations could permit Spain to apply safeguard measures, including the imposition of Spanish VAT and excise duties on goods entering Gibraltar.
Property tax
A general business property rate is levied annually on all businesses in Gibraltar. The amount varies depending on the property and is subject to an annual review.
Stamp duty
Stamp duty is payable on the transfer or sale of any Gibraltar real estate or shares in a company owning Gibraltar real estate (on an amount based on the market value of said real estate) at the following rates:
- 200,000 British pounds (GBP) or less: 0%.
- Between GBP 200,001 and GBP 350,000: 2% on the first GBP 250,000 and 5.5% on the balance.
- Between GBP 350,000 and GBP 800,000: 3% on the first GBP 350,000 and 3.5% on the balance.
- GBP 800,001 or more: 3% on the first GBP 350,000, 3.5% on the next GBP 450,000, and 4.5% on the balance.
The Stamp Duties (Amendment) Act 2004 [No.37 of 2024] was passed into law on 23 December 2024 and comes into operation on the aforementioned date. This amendment introduces an increase on the stamp duties and first-time buyer's exemption. Notwithstanding, the first-time buyer's exemption increase from GBP 260,000 to GBP 300,000 shall be deemed to come into operation on 11 July 2023.
Stamp duty is also payable on mortgages secured on Gibraltar real estate at the rate of 0.13% for mortgages less than GBP 200,000 and 0.20% for mortgages over GBP 200,000.
In July 2024, the government announced that new purchase agreements and assignments of off-plan purchases will be registrable instruments with a 0.5% special stamp duty payable on Assignment of Purchase Agreement (by the assignor). This will not include sales on subsidised estates. The measure has yet to be enacted into law and is not applicable until such time.
Payroll taxes
Collection of employee taxes is initially effected under a pay-as-you-earn (PAYE) system. Employers are required to operate the system without exception, keep appropriate records, and complete the necessary filings.
The PAYE regulations require each employee to obtain from the Commissioner of Income Tax a PAYE allowances certificate, which allocates a code to the employee. The employer is required to use tax tables issued by the Income Tax Office to calculate and deduct tax from emoluments in accordance with the employee’s applicable code. The employer is then obligated to pay over to the Commissioner any tax so deducted by the 15th day of the following month.
An employer must also account for social insurance payments in a similar manner, deducting and paying over the employee tax as well as accounting for employer’s social insurance (see below).
Social insurance contributions
Social insurance contributions are payable by every employer in respect of every employee.
Employer's contributions are calculated as 18% of gross earnings, subject to a minimum of GBP 31.98 per week (GBP 138.55 per month) and maximum of GBP 56.22 per week (GBP 243.65 per month).
Exit tax
With effect from 1 January 2020, an exit tax of 15% is imposed on the difference between the market value of the transferred assets that would otherwise produce assessable income under the provisions of the Gibraltar Income Tax Act 2010 at the time of exit of the assets and their value for tax purposes. The exit tax may apply in the following circumstances where a taxpayer transfers:
- assets from its Gibraltar head office to its PE outside Gibraltar and Gibraltar no longer has the right to tax the transferred assets
- assets from its Gibraltar PE to its head office or PE outside of Gibraltar and Gibraltar no longer has the right to tax the transferred assets
- its tax residence outside of Gibraltar and acquires tax residence in another jurisdiction (excluding assets that remain effectively connected to the Gibraltar PE), or
- the business carried on by its Gibraltar PE to another jurisdiction and in doing so the taxpayer:
- ceases to have a taxable presence in Gibraltar
- acquires a presence elsewhere without becoming tax resident, and
- Gibraltar loses the right to tax the transferred assets due to the transfer.
Gaming duty
Gaming duty is levied at 0.15% on the gross profits of holders of a bookmaker, a betting intermediary, and gaming operator’s licence. The first GBP 100,000 of gross profits is exempt from this duty.
Capital duty
Capital duty of GBP 10 is payable on the initial authorisation of share capital or any subsequent increase thereto.
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