Gibraltar & The Treaty — The Reading RoomGibraltar and the treaty, in plain wordsThe English texts come from the official English versions published by the European Union (EU) on EUR-Lex, the United Kingdom (UK) on GOV.UK and UK Parliament, and Gibraltar (the Acts and legal notices that change Gibraltar's law for the treaty, from Gibraltar Laws and the Gibraltar Gazette, and Gibraltar Parliament records: Hansard, Bills and Command Papers), plus HM Government of Gibraltar and European Commission press releases where a statement is quoted. Where a text exists only in Spanish (BOE), we quote it in Spanish and say so, and any translation beside it is ours.
Last checked: 11 November 2026
Short answers to common questions about and the rules that come with it. Each answer comes first, in plain words. Under it, “Read the official text” opens the exact words the answer rests on, with where they come from.The treatyThe Agreement in respect of Gibraltar between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part. It was signed in Brussels on 14 July 2026.
If your question is not here, use the ask bar at the top of the page or read the questions about the treaty.
The treaty was signed in Brussels on 14 July 2026. The Government of Gibraltar said it would begin to apply provisionally at midnight that night (press release 557/2026), and it gives the date of provisional application as 15 July 2026 (press release 692/2026).
The parties to the treaty may agree to apply it provisionally before it enters into force, provided that, before the date of provisional application, they have told each other that the implementation plan and the administrative arrangements it names are in effect and fully implemented and that the treaty's specific measures on monitoring and tracking tobacco are in place (Article 336(2); Article 258). Provisional application ends on the day the treaty enters into force (Article 336(3)). It enters into force on the first day of the month after both Parties have told each other that they have completed their own internal requirements and procedures for agreeing to be bound by it (Article 336(1)).
From the date of provisional application, the Parties read the treaty's references to its entry into force as references to that date (Article 336(4)). Some parts of the treaty stop applying if the administrative arrangements it names are suspended or ended under their own terms, and apply again when the suspension is lifted or new arrangements are made (Article 336(5)).
The date of provisional application comes from the Government of Gibraltar's press releases; the treaty itself does not give it. The treaty's closing words record its signing at Brussels on 14 July 2026.
A defining moment in Gibraltar's modern history took place today in Brussels, with the formal signature of the Treaty governing Gibraltar's future relationship with the European Union.HM Government of Gibraltar, press release 557/2026, 14 July 2026, "UK and EU Sign Historic Treaty on Gibraltar's Future Relationship with the EU", press release 557/2026
Read the official text (opens another website)
It enters into provisional application at midnight tonight, marking the beginning of a new chapter for Gibraltar and the surrounding region.HM Government of Gibraltar, press release 557/2026, 14 July 2026, "UK and EU Sign Historic Treaty on Gibraltar's Future Relationship with the EU", press release 557/2026
Read the official text (opens another website)
after the Treaty on Gibraltar and the European Union was provisionally applied on 15 July 2026.HM Government of Gibraltar, press release 692/2026, 23 September 2026, "Minister Arias-Vasquez Publishes Transaction Tax (Deductions) Rules 2026", press release 692/2026
1. This Agreement shall enter into force on the first day of the month following that in which both Parties have notified each other that they have completed their respective internal requirements and procedures for establishing their consent to be bound.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 336(1)
2. The Parties may agree to provisionally apply this Agreement from a date prior to the day referred to in paragraph 1 of this Article, provided that prior to the date from which this Agreement is provisionally applied the Parties have notified each other of the fact that the implementation plan referred to in Article 7 and the administrative arrangements referred to in Articles 29, 33, 38, 55, 56, 251, 260 and 265 of this Agreement and in the Protocol on Social Security Coordination are in effect and have been fully implemented, and that the measures described in Article 258 of this Agreement are in place.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 336(2)
3. Provisional application shall cease on the day referred to in paragraph 1.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 336(3)
4. As from the date from which this Agreement is provisionally applied, the Parties shall understand references in this Agreement to "the date of entry into force of this Agreement" or to "the entry into force of this Agreement" as references to the date from which this Agreement is provisionally applied.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 336(4)
5. Titles I to IV of Part Two, Title II of Part Three and Title III of Part Four shall cease to apply as from the day on which the administrative arrangements referred to in Articles 29, 33, 38, 55, 56, 251, 260 and 265 of this Agreement and in the Protocol on Social Security Coordination are suspended or terminated in accordance with the provisions thereof. They shall start applying anew as from the day on which the suspension of those administrative arrangements is lifted or on which new administrative arrangements are concluded.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 336(5)
The treaty says that the procedures and controls of the European Union () laws it lists for pets and personal luggage do not apply to the personal luggage and pets brought by travellers moving between the EU and Gibraltar through the land border (Annex 23, Article 19(2)). Those EU laws apply in the , to the personal luggage and pets that come with travellers entering through Gibraltar's port and airport (Annex 23, Article 19(1)).The UK, for GibraltarThe treaty's second side is the United Kingdom (UK) acting for Gibraltar. The treaty's own words are “the United Kingdom, in respect of Gibraltar”.The EUThe European Union (EU). The treaty also names the European Atomic Energy Community (Euratom), a separate body run alongside it.
These rules on travellers' pets apply until a decision of the set up by the treaty comes into force. In that decision the Council sets the date from which the EU laws the treaty lists for imports and exports apply in Gibraltar, and declares that border control posts and customs offices have been set up at the port and airport and are working, and that the in the EU have been designated (Article 267; Article 247(1)).Competent authorityThe public body a country has put in charge of the matter. For Gibraltar, usually the Government department or regulator named in the Act. The treaty calls it the “competent authority”.Cooperation CouncilThe treaty's top joint body: representatives of the European Union (EU) and of the United Kingdom (UK) acting for Gibraltar, with Gibraltar's nominees beside the UK Minister under the Concordat. It watches over the treaty and takes the decisions the treaty leaves to it.
The quoted texts do not list what a pet needs at the port and airport (for example, identification documents); that is in the EU laws the treaty names. They do not say what other rules, if any, apply to pets at the land border, and they do not say what applies after the Cooperation Council's decision.
2. Procedures and controls established in the legislation listed in paragraph 1UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume II, Annex 23, Article 19(2), first words (footnotes and a page break follow in the printed text)
shall not apply to personal luggage and the pet animals brought by travellers moving between the Union and Gibraltar through the land border.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume II, Annex 23, Article 19(2), continued
1. With regard to the personal luggage and the pet animals which accompany travellers entering the port and airport in Gibraltar, the following provisions of Union law shall apply in the United Kingdom, in respect of Gibraltar:UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume II, Annex 23, Article 19(1), opening words (the list of EU laws that follows is left out)
Until the entry into force of the decision referred to in Article 247(1), the entry into Gibraltar of goods carried by travellers in their personal luggage, as well as their pets, and the entry and exit of cash shall be subject to the provisions set out in Annexes 22 and 23.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 267
1. The provisions of Union law listed in Annex 20 shall apply to the United Kingdom, in respect of Gibraltar, and in Gibraltar, provided that the Cooperation Council adopts a decision: (a) specifying the date as from which the provisions of Union law listed in Annex 20 apply to the United Kingdom, in respect of Gibraltar, and in Gibraltar; and (b) declaring that border control posts and customs offices have been established in the port and airport and that they operate and are controlled in accordance with modalities and procedures set out in that decision and that competent authorities within the Union have been designated.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 247(1)
No. Under the treaty, when they cross the external borders of an , including at the border crossing points at Gibraltar's port and airport, persons resident in Gibraltar are exempt from the requirements of the Entry/Exit System (Article 42(1)) and from the requirement to hold a valid travel authorisation under the EU's travel authorisation rules (Article 42(2)).EU countriesThe countries that belong to the European Union (EU). The treaty calls each of them a “Member State”.
No entry or exit stamp is put in their travel documents (Article 42(1)).
The treaty's rule is for "persons resident in Gibraltar": people with the legal right to reside in Gibraltar, whatever their nationality, except citizens of the EU and nationals of Iceland, Liechtenstein, Norway and Switzerland, and, once agreements giving them free movement rights come into force, nationals of Andorra and San Marino (Article 26(j)). The texts quoted here do not say what applies to the people this definition leaves out.
This applies while this part of the treaty applies: it stops applying if the administrative arrangements the treaty names are suspended or ended under their own terms, and applies again when the suspension is lifted or new arrangements are made (Article 336(5); see the question on when the treaty started to apply).
1. When crossing the external borders of a Member State, including the border crossing points referred to in Article 29(1), no entry or exit stamp shall be affixed to the travel documents of persons resident in Gibraltar. Persons resident in Gibraltar shall be exempt from the requirements of the Entry/Exit System.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 42(1)
2. When crossing the external borders of a Member State, including the border crossing points referred to in Article 29(1), persons resident in Gibraltar shall be exempt from the requirement to be in possession of a valid travel authorisation pursuant to Regulation (EU) 2018/1240 of the European Parliament and of the CouncilUK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 42(2) (the footnote mark that follows is left out)
5. Titles I to IV of Part Two, Title II of Part Three and Title III of Part Four shall cease to apply as from the day on which the administrative arrangements referred to in Articles 29, 33, 38, 55, 56, 251, 260 and 265 of this Agreement and in the Protocol on Social Security Coordination are suspended or terminated in accordance with the provisions thereof. They shall start applying anew as from the day on which the suspension of those administrative arrangements is lifted or on which new administrative arrangements are concluded.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 336(5)
(j) "persons resident in Gibraltar" means persons having the legal right to reside in Gibraltar irrespective of their nationality, with the exception of Union citizens and nationals of Iceland, the Principality of Liechtenstein, the Kingdom of Norway, the Swiss Confederation as well as nationals of the Principality of Andorra and the Republic of San Marino following the entry into force of agreements conferring such nationals with free movement rights;UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 26(j)
Up to 90 days in any 180-day period (Article 41(1)).
Each EU country may still decide to require a visa from a person who lives in Gibraltar and travels to do paid work (Article 41(2)).
The treaty's rule is for "persons resident in Gibraltar": people with the legal right to reside in Gibraltar, whatever their nationality, except citizens of the EU and nationals of Iceland, Liechtenstein, Norway and Switzerland, and, once agreements giving them free movement rights come into force, nationals of Andorra and San Marino (Article 26(j)).
Article 41(2) says "each Member State"; the quoted text does not say whether this reaches EU countries that do not apply the in full.Schengen rulesThe common rules of the Schengen area on crossing borders and on police and visa cooperation, including the shared alert database. The treaty calls them the “Schengen acquis”.
Persons resident in Gibraltar may enter and stay, without a visa for a maximum period of 90 days in any 180-day period, in the territory of Member States applying the Schengen acquis in full.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 41(1), second subparagraph
Notwithstanding the second subparagraph of paragraph 1, each Member State may decide to impose a visa requirement on persons resident in Gibraltar travelling for the purpose of carrying out a paid activity.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 41(2), first subparagraph
(j) "persons resident in Gibraltar" means persons having the legal right to reside in Gibraltar irrespective of their nationality, with the exception of Union citizens and nationals of Iceland, the Principality of Liechtenstein, the Kingdom of Norway, the Swiss Confederation as well as nationals of the Principality of Andorra and the Republic of San Marino following the entry into force of agreements conferring such nationals with free movement rights;UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 26(j)
All physical barriers related to the movement of people between the European Union (EU) and Gibraltar are to be removed (Article 28). Where the treaty puts the border checks on people is the subject of the question on border checks.
For goods moving between Gibraltar and the EU by land, all physical barriers present between them are also to be removed. This is subject to the treaty's article on exceptions and safeguards, and to the formalities required and the checks and controls the EU and the United Kingdom (UK), for Gibraltar, may carry out to make sure the treaty's title on customs, indirect taxation and trade is applied correctly (Article 246(1); Article 252).
The quoted texts do not give a date for the removal.
All physical barriers related to the circulation of persons between the Union and Gibraltar shall be removed.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 28
1. All physical barriers present between Gibraltar and the Union for goods moving between them by land shall be removed, without prejudice to Article 252 or to formalities required and checks and controls that may be carried out by the Parties to ensure the correct application of this Title.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 246(1)
A Schengen short-stay visa, according to a technical notice of the Government of Gibraltar (notice 558/2026). Besides meeting the other entry conditions that apply, a national of a country whose nationals need a visa, so not a citizen of the United Kingdom (UK), must hold a Schengen short-stay visa, applied for from the appropriate Schengen authorities. Where the main purpose of the visit is to stay in Gibraltar, the notice links the issuing of the visa to Spain, as the neighbouring Schengen country whose territory the traveller actually crosses, but its sentence does not make clear whether Spain may or must issue it; where the visit also takes in other Schengen countries and Gibraltar is not the main destination, the Schengen country competent under the Schengen rules issues it.
Gibraltar recognises Schengen short-stay visas issued by any Schengen country as valid for entry into Gibraltar. It no longer operates exemptions linked to a person's immigration status in the UK, for example for people who live in the UK or hold a UK visa. It is no longer possible to apply for a UK visa to travel to Gibraltar.
Civilian sea crew who land to board a ship, or go ashore to transit to another country, are exempt from the visa requirement if they hold a seafarer's identity document issued under one of the international conventions the notice names.
This is the Government of Gibraltar's technical notice, not the treaty text. The notice says it does not apply to Gibraltar identity cardholders, Gibraltar Civilian Registration cardholders or other British citizens.
NOTE: This technical notice does not apply to Gibraltar Identity cardholders, Gibraltar Civilian Registration cardholders or other British citizens.HM Government of Gibraltar, technical notice 558/2026, 15 July 2026, "Technical Notice - Reminder Concerning Visa Arrangements"
Read the official text (opens another website)
In addition to fulfilling other entry conditions applicable, such persons will be required to be in possession of a Schengen short-stay visa. To obtain one, an application would need to be made to the appropriate Schengen authorities. Where the main purpose of the visit is to stay in Gibraltar, the treaty allows Spain, as the neighbouring Schengen State, and whose Schengen territory will actually be crossed by the traveller, and with access to Schengen information systems that shall issue the visa. However, if a visit includes destinations both elsewhere in the Schengen Area (e.g. Portugal) and Gibraltar, and Gibraltar is not the main destination, the visa will be issued by the Schengen State competent to do so in accordance with Schengen rules (e.g. Portugal in this example if Portugal is the main destination).HM Government of Gibraltar, technical notice 558/2026, 15 July 2026, "Technical Notice - Reminder Concerning Visa Arrangements"
Read the official text (opens another website)
- Gibraltar will no longer operate exemptions linked to a person's immigration status in the UK e.g. the exemptions we currently apply with respect to visa-requiring third country nationals who are resident in the UK or have been issued with a UK visa.HM Government of Gibraltar, technical notice 558/2026, 15 July 2026, "Technical Notice - Reminder Concerning Visa Arrangements"
Read the official text (opens another website)
- Gibraltar will recognise, as valid for entry into Gibraltar, Schengen short-stay visas issued by any of the Schengen States.HM Government of Gibraltar, technical notice 558/2026, 15 July 2026, "Technical Notice - Reminder Concerning Visa Arrangements"
Read the official text (opens another website)
Separately, and a point that is important for shipping agents and port operators to note, exemptions from visa requirements will apply to civilian sea crew members, when they land to board a ship or go ashore to transit to another country, provided they hold a seafarer's identity document issued in accordance with the International Labour Organisation Conventions No 108 of 13 May 1958 or No 185 of 19 June 2003 or the International Maritime Organisation Convention on Facilitation of International Maritime Traffic of 9 April 1965.HM Government of Gibraltar, technical notice 558/2026, 15 July 2026, "Technical Notice - Reminder Concerning Visa Arrangements"
Read the official text (opens another website)
- It is no longer possible to apply for a UK visa to travel to Gibraltar.HM Government of Gibraltar, technical notice 558/2026, 15 July 2026, "Technical Notice - Reminder Concerning Visa Arrangements"
Read the official text (opens another website)
At Gibraltar's port and airport. The United Kingdom (UK), for Gibraltar, and Spain set up border crossing points there, and all passengers entering Gibraltar from the port or the airport go through border checks at those points (Article 29(1) and (2)). The competent authorities of the UK, for Gibraltar, and of Spain may allow entry into Gibraltar other than through those points in three cases set out in the Schengen Borders Code, the rules of the European Union (EU) on crossing borders, and in the cases of another article of the treaty (Article 29(9), which names points (a) to (c) of Article 5(2) of that Code; Article 38).
On entry, the competent authorities of the UK, for Gibraltar, check first and then the competent Spanish authorities; on exit, the competent Spanish authorities check first and then the competent authorities of the UK, for Gibraltar (Article 29(5)). Any second line checks must be carried out at the Second Line Checks Area (Article 29(6)).
If the volume of traffic through the port allows an efficient, high and uniform level of control at the airport, the checks may be carried out at the airport border crossing point instead; the UK, for Gibraltar, and Spain must then make sure that passengers and crew arriving at the port are escorted to the airport crossing point for the Spanish authorities' border checks, and the details are to be set out in an administrative arrangement between them (Article 29(3); the checks are those of Article 33(1) and (2)). The UK, for Gibraltar, and Spain must allow automated border control systems at the crossing points for their own checks of persons resident in Gibraltar, EU citizens and their family members from outside the EU, and people with free movement rights under agreements the EU has concluded, in line with national and EU law (Article 29(4)).
Article 29 has further paragraphs (on entry conditions, infrastructure and other matters) that this answer does not cover.
1. For the purposes of this Agreement, the United Kingdom, in respect of Gibraltar, and the Kingdom of Spain shall set up border crossing points at Gibraltar port and airport, at which border checks as referred to in paragraph 2 shall be carried out.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 29(1)
2. All passengers entering Gibraltar from Gibraltar port or airport shall be subject to border checks at the border crossing points referred to in paragraph 1.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 29(2)
3. By way of derogation from paragraph 1 of this Article, border checks may be carried out at the airport border crossing point, if the volume of traffic flows through the port allows for an efficient, high and uniform level of control at the airport border crossing point. In this case, the United Kingdom, in respect of Gibraltar, and the Kingdom of Spain shall ensure that passengers and crew members arriving at the port are escorted from the port to the airport border crossing point, for the purpose of undergoing the checks referred to in Article 33(1) and (2). The modalities for the application of this derogation shall be set out in an administrative arrangement between the United Kingdom, in respect of Gibraltar, and the Kingdom of Spain.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 29(3)
4. The United Kingdom, in respect of Gibraltar, and the Kingdom of Spain shall allow the use of automated border control systems at the border crossing points referred to in paragraph 1 for their respective checks of persons resident in Gibraltar and Union citizens and their third-country family members and beneficiaries of free movement rights under agreements concluded by the Union, in accordance with domestic and Union law.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 29(4)
5. Border checks on entry shall be carried out by the competent authorities of the United Kingdom, in respect of Gibraltar, and subsequently by the competent authorities of the Kingdom of Spain. Border checks on exit shall be carried out by the competent authorities of the Kingdom of Spain and subsequently by the competent authorities of the United Kingdom, in respect of Gibraltar.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 29(5)
6. Any second line checks must be carried out at the Second Line Checks Area.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 29(6)
9. Notwithstanding paragraphs 2, 5 and 8 of this Article, the competent authorities of the United Kingdom, in respect of Gibraltar, and of the Kingdom of Spain may allow the entry into Gibraltar other than via the border crossing points, in the cases provided for in points (a), (b) and (c) of Article 5(2) of Regulation (EU) 2016/399 of the European Parliament and of the Council1 (the Schengen Borders Code) or Article 38 of this Agreement.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 29(9) (the figure 1 after "the Council" is the text's footnote mark)
Not by a set investment or payment. Predetermined investments in Gibraltar's economy or real estate, and predetermined financial payments to the Gibraltar authorities, do not meet the condition for a residence permit issued in Gibraltar, nor the conditions for an identity card issued on a basis other than prior residence (Article 45(6)).
The treaty also says that changes to the conditions in Gibraltar's legislation cannot make it possible to obtain a residence permit issued in Gibraltar without showing a genuine connection with Gibraltar (Article 45(4)(b)). That connection is shown by actual and regular physical presence in Gibraltar over an appropriate period of time, or by other objective and verifiable criteria (Article 45(5)). Residence permits of people who no longer meet that condition are withdrawn (Article 45(8)).
6. The conditions for entitlement to an identity card issued by the competent authorities of the United Kingdom, in respect of Gibraltar, on a basis other than prior residence as well as the condition for entitlement to a residence permit referred to in point (b) of paragraph 4 shall not be met: (a) on the basis of predetermined investments having been made in Gibraltar's economy or real estate; or (b) as a result of any predetermined financial payments having been made to the Gibraltar authorities.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 45(6)
Such changes shall not, in any event, make it possible for a person to be able to obtain: (a) an identity card issued in Gibraltar, on the basis of prior residence in Gibraltar, unless they have been resident in Gibraltar for a continuous period of at least 10 years immediately prior to the date of application for the card; or (b) a residence permit issued in Gibraltar unless they are able to demonstrate a genuine connection with Gibraltar.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 45(4), last sentence, points (a) and (b)
5. The condition in point (b) of paragraph 4 shall be established on the basis of a person being able to demonstrate actual and regular physical presence in Gibraltar over an appropriate period of time or on the basis of other objective and verifiable criteria.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 45(5)
8. Residence permits issued to persons who no longer meet the conditions in point (b) of paragraph 4 shall be withdrawn.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 45(8)
A residence permit issued by the authorities of the United Kingdom (UK) responsible for Gibraltar before the treaty's date of entry into force stays valid for two calendar years after that date, or until its own expiry date if that comes first (Article 52(1)).
From the start of provisional application, the treaty's references to its entry into force are read as references to the date from which it is provisionally applied (Article 336(4)). The Government of Gibraltar gives that date as 15 July 2026 (press release 692/2026).
The UK authorities responsible for Gibraltar must tell the responsible Spanish authorities who holds a permit that is in force at that date (Article 52(3)). On the basis of checks on these people in the relevant European Union (EU), national and international databases, including the Schengen Information System, the responsible Spanish authorities may ask the UK authorities responsible for Gibraltar to withdraw a permit if the holder is considered, under the Schengen rules, to be a threat to public policy, internal security, public health or the international relations of an EU country. A footnote to the treaty adds that measures taken on grounds of public policy must be proportionate and based only on the personal conduct of the person concerned, which must be a genuine, present and sufficiently serious threat to one of the fundamental interests of society. When they receive such a request, the UK authorities responsible for Gibraltar must withdraw the permit, and the withdrawal can be appealed in a national court (Article 52(3)). These steps (the list sent to Spain, the request and the withdrawal) do not apply to EU citizens and their family members, whatever their nationality, covered by an EU directive (Directive 2004/38/EC, Articles 2 and 3). Nor do they apply to nationals of Iceland, Liechtenstein, Norway, Switzerland, Andorra and San Marino and their family members, whatever their nationality, who, under agreements the EU has concluded, have rights of free movement equivalent to those of the EU citizens and family members just named (Article 52(4)). The English and Spanish official texts of this last point read slightly differently: in English the condition on free movement rights can be read as covering both the nationals and their family members; in Spanish it covers only the family members, and it speaks of an agreement between the EU and the country concerned.
This applies while this part of the treaty applies: it stops applying if the administrative arrangements the treaty names are suspended or ended, and applies again when the suspension is lifted or new arrangements are made (Article 336(5); see the question on when the treaty started to apply).
1. Residence permits issued by the competent authorities of the United Kingdom, in respect of Gibraltar, prior to the date of entry into force of this Agreement shall remain valid for a period of two calendar years after that date or until their expiration date, whichever comes first.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 52(1)
4. As from the date from which this Agreement is provisionally applied, the Parties shall understand references in this Agreement to "the date of entry into force of this Agreement" or to "the entry into force of this Agreement" as references to the date from which this Agreement is provisionally applied.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 336(4)
after the Treaty on Gibraltar and the European Union was provisionally applied on 15 July 2026.HM Government of Gibraltar, press release 692/2026, 23 September 2026, "Minister Arias-Vasquez Publishes Transaction Tax (Deductions) Rules 2026", press release 692/2026
The competent authorities of the United Kingdom, in respect of Gibraltar, shall notify the competent authorities of the Kingdom of Spain of the holders of residence permits in force at the time of the entry into force of this Agreement.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 52(3)
The competent authorities of the Kingdom of Spain may, on the basis of checks on such persons in the relevant Union, national and international databases, including the Schengen Information System request the competent authorities of the United Kingdom, in respect of Gibraltar, to withdraw a residence permit where the holder is considered, in accordance with the Schengen acquis, to be a threat to public policyUK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 52(3), first subparagraph (the words continue after a footnote mark)
internal security, public health or the international relations of a Member State.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 52(3), first subparagraph (end)
Upon receipt of such a request, the competent authorities of the United Kingdom, in respect of Gibraltar, shall withdraw the relevant residence permit subject to a right of appeal in a national court.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 52(3), first subparagraph (end)
4. Paragraph 3 shall not apply to: (a) Union citizens and family members of Union citizens, irrespective of their nationality, referred to in Articles 2 and 3 of Directive 2004/38/EC; (b) nationals of Iceland, the Principality of Liechtenstein, the Kingdom of Norway, the Swiss Confederation, the Principality of Andorra and the Republic of San Marino and their family members, irrespective of their nationality, who under agreements concluded by the Union enjoy rights of free movement equivalent to those referred to in point (a).UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 52(4)
Measures taken on the grounds of public policy shall be proportionate and shall be based exclusively on the personal conduct of the individual concerned, which must represent a genuine, present and sufficiently serious threat affecting one of the fundamental interests of society.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 52(3), footnote 1
5. Titles I to IV of Part Two, Title II of Part Three and Title III of Part Four shall cease to apply as from the day on which the administrative arrangements referred to in Articles 29, 33, 38, 55, 56, 251, 260 and 265 of this Agreement and in the Protocol on Social Security Coordination are suspended or terminated in accordance with the provisions thereof. They shall start applying anew as from the day on which the suspension of those administrative arrangements is lifted or on which new administrative arrangements are concluded.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 336(5)
Yes, through the Detached Workers regime, according to the Government of Gibraltar's guide to business registration. Instead of incorporating a company, registering a business name or submitting its own Business Application, the business can work with a business already registered in Gibraltar (the "contracting-in employer") through subcontracting, and register its own workers as Detached Workers, temporarily posted to Gibraltar to carry out the work, under Gibraltar's income tax law (Income Tax Act, section 19).
There are three routes, depending on the length of the visit. Visits of less than 48 hours for presentations, meetings, training or advice: no charge; the Gibraltar business notifies the Director of Employment by email before the visit (the worker's name, a copy of the passport, the company, the period and the reason for the visit) and reports the worker's actual entry and exit. Stays of up to 10 working days (including, among others, internal audit reviews and work carried out on site): a letter from the contracting-in employer in Gibraltar, a letter from the employing company in Spain or the EU, and a certified copy of the passport. Stays of more than 10 working days: the "Notification of Temporary Employment of a Detached Worker" form, the A1 certificate (EU companies) or, for companies from the United Kingdom (UK), confirmation from HM Revenue & Customs that tax and social insurance are being paid, the worker's passport or identity card, and a copy of the employment contract.
A fee applies for each detached worker registered under every route except the one for visits of less than 48 hours. Any worker who is not a British or EU national also needs a work permit.
This is the Government of Gibraltar's guide (accurate as at 30 July 2026, in its own words), not the treaty text. The guide does not give the fee amounts.
If your company does not wish to incorporate a company, register a business name, or submit its own Business Application, there is an alternative: collaborating with a business already registered in Gibraltar (the “contracting-in employer”) through subcontracting, and registering your own workers as Detached Workers, temporarily posted to Gibraltar to carry out the work, under section 19 of the Income Tax Act.HM Government of Gibraltar (Department of Business), Guide to Business Registration in Gibraltar (English), issued with press release 598/2026, accurate as at 30 July 2026, "Detached Workers: An Alternative to Establishing in Gibraltar"
Read the official text (PDF, opens another website)
There are three routes, depending on the length of the visit, via https://bit.ly/DetachedWorker: 1. Non-Chargeable Detached Workers — visits of less than 48 hours for presentations, meetings, training or advice. No charge. The Gibraltar business notifies the Director of Employment by email before the visit (worker's name, copy of passport, company, period and reason for the visit), and reports the worker's actual entry and exit. 2. Expedited Detached Workers — stays of up to 10 working days, including, among others, internal audit reviews and work carried out on site. Requires a letter from the contracting-in employer in Gibraltar, a letter from the employing company in Spain or the EU, and a certified copy of the passport. 3. Detached Workers (general regime) — stays of more than 10 working days. Requires the “Notification of Temporary Employment of a Detached Worker” form, the A1 certificate (EU companies) or confirmation from HM Revenue & Customs that tax and social insurance are being paid (UK companies), the worker's passport or ID card, and a copy of the employment contract.HM Government of Gibraltar (Department of Business), Guide to Business Registration in Gibraltar (English), issued with press release 598/2026, accurate as at 30 July 2026, "Detached Workers: An Alternative to Establishing in Gibraltar"
Read the official text (PDF, opens another website)
A fee applies for each detached worker registered under every route except the non-chargeable one. Any worker who is not a British or EU national will also need a work permit.HM Government of Gibraltar (Department of Business), Guide to Business Registration in Gibraltar (English), issued with press release 598/2026, accurate as at 30 July 2026, "Detached Workers: An Alternative to Establishing in Gibraltar"
Read the official text (PDF, opens another website)
Sometimes. The treaty lets a frontier worker keep that status in four situations (Article 292(5)(c)). It covers European Union (EU) citizens who legally live in Spain and United Kingdom (UK) nationals who legally live in Gibraltar (Article 291(1)(a) and (b)), who have these rights in Gibraltar and in Spain, respectively (Article 292(5)).
The four situations are: (i) they are temporarily unable to work because of an illness or accident; (ii) they are out of work through no choice of their own, as officially recorded, after more than one year in work, and have registered as job-seekers with the relevant employment office; (iii) they are out of work through no choice of their own, as officially recorded, after completing a fixed-term contract of less than one year, or after becoming unemployed through no choice of their own during the first twelve months, and have registered as job-seekers with the relevant employment office (in this case the status is kept for no less than six months); or (iv) they start vocational training, which, unless they are out of work through no choice of their own, must be related to their previous job.
(a) Union citizens legally residing in the Kingdom of Spain; (b) United Kingdom nationals legally residing in Gibraltar; andUK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 291(1)(a) and (b)
5. Persons as referred to in points (a) and (b) of Article 291(1) shall enjoy the following rights in Gibraltar and the Kingdom of Spain, respectively:UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 292(5), opening words
(c) the right to retain frontier worker status provided they are in one of the following circumstances: (i) they are temporarily unable to work as the result of an illness or accident; (ii) they are in duly recorded involuntary unemployment after having been employed for more than one year and have registered as job-seekers with the relevant employment office; (iii) they are in duly recorded involuntary unemployment after having completed a fixed-term employment contract of less than one year or after having become involuntarily unemployed during the first twelve months and have registered as job-seekers with the relevant employment office. In this case, the status of worker shall be retained for no less than six months; or (iv) they embark on vocational training. Unless they are involuntarily unemployed, the retention of the status of worker shall require the training to be related to the previous employment.UK/EU and EAEC Agreement in respect of Gibraltar, Miscellaneous No. 9 (2026), signed 14 July 2026, volume I, Article 292(5)(c)
Once the treaty applies, only goods in your personal luggage that are of "non-commercial character" can come in without customs processes and without transaction tax or excise duty. Even then, during the first 3 years of the treaty's application, there are limits (allowances): above them, the goods must be declared to customs and transaction tax paid on them, even if they are non-commercial in character.
The allowances are the sterling (GBP) equivalent of: for general goods, EUR 430 if brought by air or sea and EUR 300 if brought by land (for under-15s the threshold value is reduced in either case to EUR 175); for tobacco, 200 cigarettes, 100 cigarillos, 50 cigars or 250g of tobacco; for alcohol, 1 litre of spirits (over 22%) or 2 litres of fortified or other alcohol (22% or less) and 4 litres of still wine or 16 litres of beer. The guidance does not make clear how the parts of its alcohol list combine.
The guidance says customs look at a variety of factors, and that the core test is whether the goods appear intended for personal use or as gifts rather than for resale or business activity. Goods that a small trader brings from Spain into Gibraltar to sell are not of a non-commercial character, even if they are small in quantity or low in value.
At the end of the 3 years, these thresholds (and so the duty to declare the goods and pay transaction tax on them above the thresholds) will not apply to movements from the European Union (EU) into Gibraltar.
This is the Government of Gibraltar's own guidance (its consolidated questions report), not the treaty text. It covers goods in personal luggage only.
Once the treaty applies, only goods introduced into Gibraltar in “personal luggage” which are of “non-commercial character” will be able to be brought into Gibraltar without having to undergo customs processes relevant to the importation of goods into Gibraltar and without transaction tax or excise duties having to be paid on them, subject to the below.HM Government of Gibraltar, Consolidated FAQ Questions Report (file dated 19 June 2026), question CUST-06
The core test will be whether the goods appear intended for personal use or as gifts rather than for resale or business activity.HM Government of Gibraltar, Consolidated FAQ Questions Report (file dated 19 June 2026), question CUST-06
During the first 3 years of the treaty’s application, goods exceeding a certain value or goods exceeding certain quantities will, even if it is determined that they are non-commercial in character, be subject to obligations with respect to customs declarations and the payment of transaction tax.HM Government of Gibraltar, Consolidated FAQ Questions Report (file dated 19 June 2026), question CUST-06
These thresholds, which are known as “allowances”, will be the GBP equivalents of the following amounts: - For general goods acquired and brought by air or by sea, EUR 430 or EUR 300 if brought by land. For under 15s, the threshold value is reduced in either case to the EUR 175. - For tobacco products: 200 cigarettes, 100 cigarillos, 50 cigars, or 250g of tobacco. - For alcohol products: 1l spirits (>22%), or 2l fortified or other alcohol (≤22%) and 4l still wine or 16l beerHM Government of Gibraltar, Consolidated FAQ Questions Report (file dated 19 June 2026), question CUST-06
a small trader bringing goods from Spain into Gibraltar to sell, even if those goods are small in quantity or low in value, would not be goods of a non-commercial character.HM Government of Gibraltar, Consolidated FAQ Questions Report (file dated 19 June 2026), question CUST-06
At the end of this 3-year period, these thresholds (and therefore obligations with respect to customs declarations or the payment of transaction tax) will not apply in so far as movements from the EU into Gibraltar are concerned.HM Government of Gibraltar, Consolidated FAQ Questions Report (file dated 19 June 2026), question CUST-06
When applying these concepts, customs authorities look will at a variety of factors.HM Government of Gibraltar, Consolidated FAQ Questions Report (file dated 19 June 2026), question CUST-06
No, according to the Government of Gibraltar. It says the treaty does not provide for the free movement of services, so businesses established in Spain or elsewhere in the EU have no automatic right under the treaty to enter Gibraltar and provide services, and that they can do so if they register and pay the relevant corporation tax, PAYE and Social Insurance as appropriate.
The Government says that, depending on the nature of the business, the available routes include: incorporating a company in Gibraltar or registering an overseas company or branch; registering a business name or partnership; registering as self-employed; submitting a Business Application to the Office of Fair Trading for the relevant registration or licence; or working through a registered Gibraltar business under the Detached Worker regime. It says that in most cases the business must first set up or register its legal or trading structure and then submit the Business Application, and that employees, directors and self-employed workers must also be registered with the Department of Employment. Where a Spanish or other overseas company is subcontracted by a Gibraltar business, it says the company's workers may instead be registered temporarily under the Detached Worker regime, subject to the applicable requirements.
The press release says its accompanying English and Spanish guides explain these options and give the application routes and contact details. The fees and processing times of the Business Application are not in the texts we hold.
The UK-EU Treaty on Gibraltar does not provide for the free movement of services. This was never an option available to Gibraltar during the Treaty negotiations as a result of the position of the EU and Spain. Businesses established in Spain or elsewhere in the European Union therefore have no automatic right under the Treaty to enter Gibraltar and provide services but are able to but if they register and pay relevant corporation tax, PAYE and Social Insurance as appropriate.HM Government of Gibraltar, press release 598/2026, 30 July 2026, "HM Government of Gibraltar issues guidance on registering to provide services in Gibraltar", press release 598/2026
Read the official text (opens another website)
Depending on the nature of the business, the available routes include: - Incorporating a company in Gibraltar or registering an overseas company or branch; - Registering a business name or partnership; - Registering as self-employed; - Submitting a Business Application to the Office of Fair Trading for the relevant registration or licence; or - Working through a registered Gibraltar business using the Detached Worker regime.HM Government of Gibraltar, press release 598/2026, 30 July 2026, "HM Government of Gibraltar issues guidance on registering to provide services in Gibraltar", press release 598/2026
Read the official text (opens another website)
In most cases, the business must first establish or register its legal or trading structure and then submit a Business Application to the Office of Fair Trading. Employees, directors and self-employed workers must also be registered with the Department of Employment.HM Government of Gibraltar, press release 598/2026, 30 July 2026, "HM Government of Gibraltar issues guidance on registering to provide services in Gibraltar", press release 598/2026
Read the official text (opens another website)
The accompanying English and Spanish-language guides, prepared by the Department of Business, explain these options and provides the relevant application routes and contact details.HM Government of Gibraltar, press release 598/2026, 30 July 2026, "HM Government of Gibraltar issues guidance on registering to provide services in Gibraltar", press release 598/2026
Read the official text (opens another website)
Where a Spanish or other overseas company is subcontracted by a Gibraltar business, its workers may instead be registered temporarily under the Detached Worker regime, subject to the applicable requirements.HM Government of Gibraltar, press release 598/2026, 30 July 2026, "HM Government of Gibraltar issues guidance on registering to provide services in Gibraltar", press release 598/2026
Read the official text (opens another website)
No official text we hold gives a 21% deposit.
The Government of Gibraltar has said that mechanisms are being made available to address concerns about customs guarantees, including the establishment of a company acting as a Global Guarantor for all traders in Gibraltar, so that guarantee requirements do not stand in the way of taking part in customs procedures under the treaty arrangements (press release 400/2026).
No official text we hold says how the Global Guarantor works, what it costs or on what terms traders may use it. More on customs guarantees: the business questions page, question Q5.
Businesses have also been given reassurances that mechanisms are being made available to address concerns relating to customs guarantees. This includes the establishment of a company acting as a Global Guarantor for all traders in Gibraltar, ensuring that guarantee requirements do not present a barrier to participation in customs procedures under the Treaty arrangements.HM Government of Gibraltar, press release 400/2026, 26 May 2026, "HMGoG Publishes Guidance on NIF and EORI Registration Requirements for Gibraltar Traders and Confirms Assurances on Guarantees"
More on this: Business questions: Q5
No, according to the Government of Gibraltar. It says that obtaining a Spanish tax identification number (Número de Identificación Fiscal, NIF) for customs identification purposes does not make a business taxable in Spain, does not create Spanish VAT or corporation tax obligations, and does not amount to establishment in Spain. It says this was confirmed to HM Customs by the Spanish Tax Agency (Agencia Tributaria), by United Nations customs experts and by independent legal advice the Government obtained (press release 400/2026).
The NIF is needed only to obtain the Economic Operators Registration and Identification (EORI) number, which is required for traders operating customs movements connected with Spain and the wider European Union (EU) customs territory. Only businesses that will be importing goods (and paying transaction tax from their own account) need the registrations. Where a customs agent completes the customs formalities and pays the taxes and duties from its own account on behalf of a Gibraltar business, that business does not need the EORI or NIF (press release 400/2026).
This is the Government of Gibraltar's statement, not a Spanish official text.
HM Government wishes to make clear that obtaining a Spanish NIF for customs identification purposes does not render a business taxable in Spain, does not create Spanish VAT or corporation tax obligations, and does not constitute establishment in Spain. This position has been confirmed to HM Customs by the Spanish Agencia Tributaria, by UN customs experts, and by independent legal advice obtained by HMGoG.HM Government of Gibraltar, press release 400/2026, 26 May 2026, "HMGoG Publishes Guidance on NIF and EORI Registration Requirements for Gibraltar Traders and Confirms Assurances on Guarantees"
The EORI registration is required for traders operating customs movements connected with Spain and the wider EU customs territory. Obtaining a NIF is an integral part of the process for obtaining the EORI and is necessary for that purpose only.HM Government of Gibraltar, press release 400/2026, 26 May 2026, "HMGoG Publishes Guidance on NIF and EORI Registration Requirements for Gibraltar Traders and Confirms Assurances on Guarantees"
Only businesses that will be importing goods (and paying transaction tax from their own account) require the registrations and are encouraged to make both of these applications as soon as possible. Where a customs agent is completing the customs formalities, and paying the relevant taxes and duties from their own account, on behalf of a Gibraltar business, the Gibraltar business will not require an EORI/NIF.HM Government of Gibraltar, press release 400/2026, 26 May 2026, "HMGoG Publishes Guidance on NIF and EORI Registration Requirements for Gibraltar Traders and Confirms Assurances on Guarantees"
They are two transit processes in HM Customs Gibraltar's guidance note on the goods transit process. T1GI covers goods whose origin is outside the European Union (EU) moving from the designated customs post (DCP) to Gibraltar, and non-EU goods previously placed in a special customs procedure that are taken out of Gibraltar to other territories, moving from Gibraltar to the designated customs post.
T2GI covers goods of EU origin moving from the designated customs post to Gibraltar, and goods previously placed in a tax special procedure or released for free circulation in Gibraltar, moving from Gibraltar to the designated customs post.
This is HM Customs Gibraltar's guidance, not the treaty text.
• T1GI – Transit process covering the movement from the DCP to Gibraltar of non-EU Goods and from Gibraltar to the DCP concerning non-EU goods previously placed in a special customs procedure that are taken out from Gibraltar to other territories.HM Customs Gibraltar, guidance note "Goods Transit Process" (Transit GN), section 1.2 Definitions
• T2GI - Transit process covering the movement from the DCP to Gibraltar of goods of EU origin and from Gibraltar to the DCP concerning goods previously placed in a tax special procedure or released for free circulation in Gibraltar.HM Customs Gibraltar, guidance note "Goods Transit Process" (Transit GN), section 1.2 Definitions
• DCP - Designated Customs Post.HM Customs Gibraltar, guidance note "Goods Transit Process" (Transit GN), section 1.2 Definitions
Yes, in two cases. Goods exported to the European Union (EU): the Collector of Customs refunds the tax if the exporter proves to the Collector's satisfaction that value added tax (VAT) has been paid in the EU (section 102(1)). Goods exported to a country outside the customs union through a designated customs post: the Collector refunds it once the designated customs post has told the Collector (section 102(2)).
Goods consumed in Gibraltar cannot get a refund (section 102(3)).
The heading of section 102 speaks of goods exported from Gibraltar in commercial quantities.
Refund of the transaction tax where goods are exported from Gibraltar in commercial quantities.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), section 102, heading
102.(1) The Collector shall refund the transaction tax charged on a good upon its export to the European Union provided the exporter can prove to the Collector’s satisfaction that VAT has been paid in the European Union.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), section 102(1)
(2) The Collector shall refund the transaction tax where goods are exported to a country outside the customs union via a designated customs post and the Collector has been so notified by the designated customs post.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), section 102(2)
(3) Goods consumed in Gibraltar shall not be eligible for a refund of the transaction tax.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), section 102(3)
The standard rate is 15% in the 12 months following the entry into force of the treaty (year 1), 16% from 12 to 24 months after it (year 2), and after 24 months 17% or such rate as may be the lowest applied by any European Union (EU) country at that time (Schedule 2, paragraph 3(1)).
A reduced rate of 5% and a super reduced rate of 0% apply to the goods listed for each in the Schedule (Schedule 2, paragraph 3(2) and (3)). For example, the reduced rate applies to children's clothing and footwear, children's car seats and bicycles, including electric bicycles; the super reduced rate applies to foodstuffs (including beverages but excluding alcoholic beverages), the supply of water and pharmaceutical products used for medical and veterinary purposes. The lists in the Schedule are longer than these examples.
The Minister may make regulations to change the rates or move goods from one rate to another, within limits set in the Act: for a change made after the end of 24 months following the entry into force of the treaty, the standard rate may not be set below the lowest standard VAT rate applied by an EU country at that time; the lists of goods for the reduced and super reduced rates may only include goods to which EU countries may apply such rates under EU law on VAT; and a change to those lists must be in line with EU law on VAT and cannot come into operation until the EU has been notified of it (section 99(3) and (4)). Those limits do not apply where the Minister changes the Schedule following a recommendation from the independent consultative body referred to in the treaty (section 99(5)).
Schedule 2 counts these periods from "the entry into force of the TGEU" (the treaty); the quoted text does not say whether this means the date of provisional application. These are provisions of the Gibraltar law that carries out the treaty; in our files it exists only in English.
3.(1) The “standard rate” of the transaction tax shall be set as follows— (a) in the period ending 12 months following the entry into force of the TGEU (year 1): 15%. (b) in the period commencing after 12 months following the entry into force of the TGEU and ending 24 months following the entry into force of the TGEU (year 2): 16%.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), Schedule 2, paragraph 3(1)(a) and (b)
(c) after 24 months following the entry into force of the TGEU: 17% or such rate as may be the lowest applied by any Member State at that time.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), Schedule 2, paragraph 3(1)(c)
4 Children’s clothing and footwear; children’s car seats. 5% 5 Bicycles, including electric bicycles; 5%Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), Schedule 2, paragraph 3(2), table rows 4 and 5
1 Foodstuffs (including beverages but excluding alcoholic beverages) for 0% human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), Schedule 2, paragraph 3(3), table row 1
2 Supply of water. 0% 3 Pharmaceutical products used for medical and veterinary purposes, 0% including products used for contraception and female sanitary protection, and absorbent hygiene products.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), Schedule 2, paragraph 3(3), table rows 2 and 3
(3) Subject to subsection (4), the Minister may make regulations to-Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), section 99(3), opening words
(a) amend the transaction tax rates; and (b) change a good or category of good from one rate to another. (4) Where the Minister amends the transaction tax rate or changes a good or category from one rate to another- (a) (where the change is made at any time after the end of 24 months following the entry into force of the TGEU) the standard rate shall be set at not less than the lowest standard VAT rate applied by a Member State at that time; (b) the list of goods to which a reduced or super reduced rate applies shall only include goods to which Member States may, in line with European Union law concerning VAT, apply a reduced or super reduced rate; and (c) if the list of goods referred to in paragraph 3 of the Schedule is modified- (i) such amendments must be in line with European Union law concerning VAT, and (ii) the regulations may not come into operation until the European Union has been notified of the changes.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), section 99(3)(a) and (b) and (4)
(5) Subsection (4) does not apply where the Minister amends the Schedule following a recommendation from the independent consultative body referred to in Article 248 and Article 2 of Annex 24.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), section 99(5)
Goods. Under the Gibraltar law that carries out the treaty, goods produced in Gibraltar or imported into Gibraltar are liable to transaction tax, subject to any exemptions or exclusions that apply, in the cases the Act sets out (section 98(1); Schedule 2, paragraphs 1 and 2).
The Collector of Customs must collect the tax and must make sure it is paid into the consolidated fund (section 98(2) and (3)).
Section 98 names goods; the quoted text says nothing about services.
98.(1) Goods that are- (a) produced in Gibraltar; or (b) imported into Gibraltar, are, subject to any applicable exemptions or exclusions, liable to the payment of a transaction tax in the circumstances set out in paragraphs 1 and 2 of Schedule 2.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), section 98(1)
(2) The transaction tax referred to in subsection (1) must be collected by the Collector. (3) The Collector must ensure that any transaction tax collected under this section is paid into the consolidated fund.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), section 98(2) and (3)
“Collector” means the Collector of CustomsTreaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), definition of "Collector" (the words that follow are left out)
For goods entering Gibraltar, the person who declares the goods, or on whose behalf they are declared, for entry into Gibraltar (section 100(1)). If goods enter Gibraltar irregularly, any other person involved in that irregular entry is liable to pay it (section 100(2)).
For goods produced in Gibraltar, the person producing them (section 100(3)).
These are sections of the Treaty on Gibraltar and the European Union Act 2026.
100.(1) The person who declares the goods or on whose behalf they are declared for entry into Gibraltar shall be liable to pay the transaction tax.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), section 100(1)
(2) In the case of irregular entry into Gibraltar, any other person involved in the irregular entry of such the goods shall be liable to pay the transaction tax.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), section 100(2)
(3) The person producing the goods in Gibraltar shall be liable to pay the transaction tax.Treaty on Gibraltar and the European Union Act 2026 (Act No. 2026-11), section 100(3)
Texts of the Government of Gibraltar on this page (laws, legal notices, the Gazette, Hansard and press releases): © Crown copyright, Government of Gibraltar, reproduced under the Government's copyright notice with the source named and the copyright acknowledged; Hansard: © Gibraltar Parliament. Every one can be read free, in full, on this site (the texts: the Act and the Constitution; the law changes, with the Legal Notices; the statements, by sitting) or at the official source (Gibraltar Laws; Hansard on parliament.gi; press releases).
© 2026 Premier Global Market Solutions Limited. All rights reserved.