Gibraltar to introduces a new ”Transaction Tax”

29 July 2026

As reported during 2025 and confirmed in Gibraltar’s 2026 Budget, Gibraltar has introduced a new “Transaction Tax” on goods as part of the post-Brexit UK–EU treaty arrangements for Gibraltar.

The measure replaces Gibraltar’s previous import duty regime and will be collected from 15 July 2026 on goods imported into Gibraltar or manufactured locally when they are placed on the Gibraltar market for sale. The new tax has been introduced at 15% for the first year, increasing to 16% in the second year, and 17% from the third year.

Following Brexit, Gibraltar remained outside the EU Customs Union, which led to customs checks being implemented when goods and people crossed the land border between Gibraltar and Spain. The Transaction Tax is intended to align Gibraltar’s taxation of goods more closely with EU indirect tax principles and support the continued frictionless movement of goods across the Gibraltar–Spain border.