Individual - Foreign tax relief and tax treaties

Last reviewed - 05 December 2023

Double taxation relief

Any person ordinarily resident in Gibraltar who is liable to pay tax in Gibraltar in respect of income also taxed abroad is eligible to claim double taxation relief in respect of the tax paid abroad. On furnishing evidence of the payment made abroad, the claimant is entitled to a credit equivalent to the lesser of the:

  • tax payable on that income in Gibraltar or
  • tax payable or paid abroad in respect of the same income.

If relief from the double taxation is given abroad, the relief then given in Gibraltar is reduced accordingly.

A claim for double taxation relief has to be made within the six years after the end of the year of assessment to which it relates. The time limit is extended where any adjustment or assessment made in Gibraltar or abroad renders any relief previously given excessive or insufficient. In those circumstances, a claim may be made within the six years after the adjustment or assessment.

Spain Tax Agreement

On 4 March 2019, an International Tax Agreement between the United Kingdom (which retains constitutional responsibility for Gibraltar’s external relations) and the Kingdom of Spain was signed, which entered into force on 4 March 2021.

The Tax Agreement principally seeks to improve cooperation in the field of taxation and assist in the resolution of disputes as to the proper tax residence of companies and individuals where their place of residence between Gibraltar and Spain may be in issue.

The Agreement also provides for Gibraltar to keep legislation equivalent with EU law on matters related to transparency, administrative cooperation, harmful tax practises, and Anti-Money Laundering after Gibraltar has left the European Union.

UK Tax Agreement

On 1 October 2019, the United Kingdom government and the government of Gibraltar signed a Double Taxation Agreement based on the OECD Model Tax Convention with the purpose of eliminating double taxation with respect to taxes on income and capital and preventing tax evasion and avoidance.