Gibraltar to introduce a 15% sales tax

30 June 2025

As a result of a post-Brexit agreement between the UK and Spain, the British overseas territory of Gibraltar will introduce a 15% sales tax by 2028.

Post Brexit, Gibraltar (which shares a land border with Spain) found itself outside the EU customs Union. This led to customs checks being implemented when goods and people cross the land border between the two countries. 

To remove these custom checks and to allow for frictionless movement of people and goods, the European Commission insisted that the British territory aligns its taxation policies with the EU. The introduction of the sales tax at 15% will mark the end of Gibraltar’s long-standing VAT-free regime.

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