🇬🇮 🇪🇺 Tax10 Apr 2026
Gibraltar replaces import duty with a transaction tax as its EU customs union starts
From 10 April 2026 Gibraltar operates in a bespoke customs union with the EU under the UK–EU treaty on Gibraltar. Import duties end and are replaced by a transaction tax on goods imported or made for sale in Gibraltar, starting at 15% and rising to 17% by the third year, with 5% and 0% rates for some goods. HM Customs Gibraltar collects it, and goods sold in Gibraltar must meet EU standards.
The customs union is bilateral: Gibraltar does not join the EU customs territory, but trade in goods with the EU is free of customs duties and quotas.
What changed
- Transaction tax: replaces import duty on goods imported, or manufactured, for sale in Gibraltar. The standard rate starts at 15% and rises to 17% by the third year.
- Reduced rates: 5% for some categories, such as children's clothing and books, and 0% for some foods, water and medical equipment.
- Collection: HM Customs charges the tax on import. Goods in a special customs procedure are taxed when released for sale, and locally made goods when they leave the production site.
- Excise: EU minimum excise rates apply to tobacco and alcohol.
- Product rules: goods sold in Gibraltar must comply with EU rules, with a transition period for goods already on the market.
Who is affected
Gibraltar businesses that import, make or sell goods, and their finance teams.