Gibraltar

Social insurance contributions

Social insurance contributions are payable by every employee or self-employed person in any week in which they work.

Employees' contributions are calculated as 10% of gross earnings, subject to a minimum of GBP 13.65 per week (GBP 59.15 per month) and maximum of GBP 38.85 per week (GBP 168.35 per month).

Employer's contributions are calculated as 18% of gross earnings, subject to a minimum of GBP 30.45 per week (GBP 131.95 per month) and maximum of GBP 53.55 per week (GBP 232.05 per month).

Self-employed contributions are calculated as 20% of gross earnings, subject to a minimum of GBP 29.00 per week (GBP 125.67 per month) and maximum of GBP 51.00 per week (GBP 221.00 per month).

Consumption taxes

Value-added tax (VAT)

There is no VAT in Gibraltar.

Wealth tax

There is no wealth tax in Gibraltar.

Estate duty

There is no estate duty in Gibraltar.

Inheritance tax

There is no inheritance tax in Gibraltar.

Gift tax

There is no gift tax in Gibraltar.

Customs and excise duties

Goods imported into Gibraltar are generally subject to import duty at varying rates.

Noticeable exceptions are food, alcohol, and tobacco, which are subject to a fixed amount of duty regardless of the value.

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:

• GBP 200,000 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. 

For first and second-time buyers, there is no stamp duty to pay on properties valued at less than GBP 300,000.

On affordable housing estates developed by the government, the following applies:

• There is no stamp duty on the initial purchase price of the property.
• A special rate of stamp duty of 7.5% is payable on the sale of affordable housing developed by the government within the first ten years since original purchase. The duty is not payable in circumstances of a forced sale, including in the cases of divorce or where a family moves to a larger property as a meritorious upgrade to another, newer, government affordable housing estate.

In the 2024 Budget, it was announced that the special stamp duty rate of 7.5% will not be applicable to the sales of an affordable home after an acquisition on the open market. The legislation has not been formally amended, and confirmation that this benefit will be applied administratively has yet to be announced. 

The 0.5% special stamp duty on the purchase agreement and assignments of off-plan purchases announced in the 2024 Budget has yet to be enacted into legislation and will not apply until the Stamp Duties Act 2005 has been amended.

Stamp duty on transfer of properties between spouses is nil.

Stamp duty is also payable on mortgages secured on Gibraltar real estate at the following rates:

• Less than GBP 200,000: 0.13%.
• Over GBP 200,000: 0.20%.