Customs & Import Duties in Gibraltar | Rates & Rules

Understanding Import Duty in Gibraltar: An Introduction for Importers and InvestorsCopy link to section

Customs and import duties in Gibraltar work differently from the systems most foreign owners know from the EU or the UK. The territory levies no Value Added Tax. In its place, most goods brought into Gibraltar attract import duty at varying rates, governed by the Imports and Exports Act 1986 and collected by HM Customs Gibraltar. This arrangement matters to any business that plans to import stock, equipment, or vehicles for sale or use within the jurisdiction.

A major change is already in motion. From 10 April 2026, the existing import duty framework gives way to a Transaction Tax under a bespoke customs union with the EU, which this article addresses in its final section.

This guide explains how duty is charged, valued, and cleared, which goods carry special rates or exemptions, and what the transition to the new regime means for importers. It will be most useful to foreign business owners, investors, and their advisers weighing whether to import through or trade with a Gibraltar entity.

The Legal Basis: The Imports and Exports Act 1986 and HM Customs GibraltarCopy link to section

The controlling statute is the Imports and Exports Act 1986 (Act No. 1986-21), which came into operation on 1 January 1987. It separates two functions you need to understand: control of what may enter the territory, and the imposition of duty on what does. The first covers prohibited imports, controlled drugs, and the government's power to restrict goods; the second sets out when and how duty falls due.

Two timing rules drive the practical position for importers. Duty becomes due on goods specified by regulation at the prescribed moment, and it is payable on all dutiable goods not entered for storage before a customs officer permits removal from the place of unloading. In short, you cannot move goods off the wharf until the position on duty is settled.

HM Customs Gibraltar (HMCG) administers and enforces this regime, securing and accounting for all duties, fees, and incidental charges on goods entering and leaving the territory. Its remit extends across a body of related law, including the Imports & Exports (Control) Regulations, the Import Duty (Franchise) Regulations, the Import Duty (Integrated Tariff) Regulations, the Tobacco Act, and the Endangered Species Act.

Any importer, or a duly authorised agent acting for them, must make a declaration to customs on imported goods. The Act has been amended many times; the consolidated text on the Gibraltar Laws website was last updated 31 October 2024.

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How Import Duty Rates Work: The Integrated Tariff and Commodity CodesCopy link to section

Rates are not a single percentage. They are set out in the Import Duty (Integrated Tariff) Regulations, which list the duty chargeable on each class of goods and assign the commodity code numbers used to classify imports and exports. The same instrument records existing prohibitions and restrictions, so classification and control sit in one place.

The Integrated Tariff is revised frequently. Recent amendments include the Integrated Tariff (Amendment No. 2) Regulations 2024 through to No. 5, together with an Integrated Tariff (Amendment) Regulations 2025.

Duty is calculated on the CIF basis, meaning Cost, Insurance and Freight. The dutiable figure is the value of the goods plus shipping and insurance, not the bare invoice price.

Special Rate Categories: Fuel, Tobacco, Alcohol and Motor VehiclesCopy link to section

Some goods do not follow the value-based model. Fuel, tobacco, and alcohol carry a fixed amount of duty per unit regardless of value, and Gibraltar applies a separate excise duty on alcohol, tobacco, and mineral oils on top. The per-unit figures appear in the Integrated Tariff; confirm the exact rates directly with HM Customs, as they are not consistently reproduced in public summaries.

Motor vehicles are charged on value, at rates between 2% and 35%. The applicable rate turns on engine type and size and on whether the importation is private or by a dealer.

Incentives apply to cleaner vehicles. A cashback of £2,500 is available for full electric vehicles and £250 for hybrids, effective from 1 July 2025.

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Customs Valuation: Determining the Dutiable Value of Imported GoodsCopy link to section

Valuation rests on the CIF method. The dutiable value is the cost of the goods plus shipping and insurance, which is the figure duty is calculated against.

For goods arriving by post, the same logic applies through the customs declaration. Duty is worked out on the value stated on the CN22 or CN23, converted to pound sterling at the official exchange rate, with charges payable on the price paid plus postage, packing, and insurance.

Detailed fallback methods used in some jurisdictions, such as deductive or computed value, are not set out in the public sources. If a transaction value is contested or unavailable, confirm the approach with HM Customs before shipping.

Under the post-treaty regime that takes effect on 10 April 2026, the taxable amount for the Transaction Tax is built on the customs value of the goods, with importation taxes and duties (excluding the Transaction Tax itself) and incidental costs such as commission, packing, transport, and insurance added in.

Exemptions, Concessions and Duty-Free AllowancesCopy link to section

A defined list of goods enters free of import duty. The category is broad and product-specific rather than principle-based.

• Gold bullion and classic cars (subject to conditions)
• Portable computers, televisions, and mobile phones
• Software, LED lighting, and musical instruments
• Electrical audio and visual equipment
• Sports and educational equipment
• Recycled stationery and writing materials
• Yachts and associated electronic equipment, and boat propellers

Duty-free allowances for travellers are tightly bounded. Relief is available only to a person who has not been in the territory for at least 24 hours before entry and not more than once in any calendar month; anyone entering more often counts as a regular entrant and loses the relief entirely. The general goods allowance under the pre-treaty rules is a total value of £32 for other articles, and no relief on tobacco, alcohol, or perfume is given to anyone under 17.

From 10 April 2026, a new allowances regime applies: €430 for travellers arriving by sea or air and €300 for those crossing by land. For EU-Gibraltar travel this runs for an initial three years; for travel between Gibraltar and a non-EU country, such as the UK, it is permanent. Under the new Transaction Tax, essential goods including food, water, medicines, books, and electricity attract a 0% super-reduced rate, while items such as children's clothing and bicycles sit at a reduced 5% rate.

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The Import Clearance Process: Declarations, Registration and DocumentationCopy link to section

Clearance begins before goods arrive. A business intending to import must hold a Business Licence that expressly covers the importation and sale of the goods in question, and the licence application has to detail the operation in full.

Commercial importers and exporters must also register with HM Customs. The registration form goes to the Entry Processing Unit at British Lines Road, supported by a copy of the Business Licence and the Certificate of Incorporation or Business Registration.

Submissions are electronic. HMCG runs ASYCUDA World ICIS, the customs information system developed by UNCTAD, through which all required forms are filed. The codes you will encounter include the SAD (Single Administrative Document), the MRN (Movement Reference Number), the IM4 declaration for import into home use, and the B1 export declaration used in Spain.

The practical sequence for a commercial consignment runs as follows:

1. Present the consignment to HM Customs on arrival.
2. Confirm arrival and allow controls to be performed via the transit system.
3. Lodge the IM4 import declaration through the SAD on ASYCUDA.
4. Settle duty and any charges before goods are released.

Travellers face a simpler split. Everyone arriving must clear customs through the Red Channel for goods to declare or the Green Channel for nothing to declare, and the Entry Processing Unit handles presentation and clearance during normal business hours.

Prohibited and Restricted Goods at the Gibraltar FrontierCopy link to section

Selective checks target a defined set of prohibited and restricted goods. The list covers drugs, firearms, ammunition, offensive weapons such as flick knives, explosives, fireworks, indecent or obscene material, fast motor launches, raw and worked ivory, rigid inflatable boats of six metres or more, and tobacco in commercial quantities.

Live animals form a category of their own because of rabies risk. Cats and dogs may enter only directly from or via the United Kingdom and need a veterinary certificate proving rabies vaccination, or a British Ministry of Agriculture certificate confirming six months in a rabies-free area. Caravans require a licence obtained beforehand from the office of the Collector of Customs.

Goods Imported by Post and Parcel ChargesCopy link to section

Most goods arriving by post are liable to customs duty and an import handling fee unless they are exempt or fall below the government-set threshold. The sender must complete a CN22 or CN23 customs declaration, fixed to the package, stating the description, value, and whether the contents are gifts or commercial items. The importer remains legally responsible for the accuracy of that declaration.

Duty is calculated at the postal depot on the declared value converted to pound sterling, and charges are payable on the price paid for the goods plus postage, packing, and insurance. Where the value of items reaches or exceeds £25, the Royal Gibraltar Post Office adds a £4.00 import handling fee covering processing, customs procedures, payment handling, and documentation.

Gifts bought abroad and sent to someone in Gibraltar are treated as a commercial consignment and attract duty and the handling fee. Where one parcel holds gifts for several members of the same family, a £39 relief applies per individual, provided each item is separately wrapped, specifically addressed, declared separately, and within the allowances.

Packages are examined both for prohibited or restricted contents and to verify the declared description and value. An inaccurate or missing declaration can lead to delay, return to sender, or seizure.

The Outlook: The EU Customs Union and the Transaction Tax Replacing Import DutiesCopy link to section

The framework described above is being replaced. On 4 February 2026 the government announced a Transaction Tax on goods and a new system of excise and import duty, taking effect from 10 April 2026 as part of a customs union with the EU. The existing import duties ceased to apply on that date, with Transaction Tax and excise duties applying in their place.

The new arrangement is a bespoke bilateral customs union. It does not place Gibraltar inside the EU Customs Territory; it sets up a framework governing the movement of goods, with the Transaction Tax standing in for the old import duties. Between the EU and Gibraltar, no customs duties on imports or exports, including duties of a fiscal nature, are applied.

The Transaction Tax phases in over three years.

Two lower bands sit beneath the standard rate. A reduced rate of 5% and a super-reduced rate of 0% apply to categories drawn directly from Annex III of the EU VAT Directive. Bunkering fuel, ship supplies, and goods not intended for sale are exempt, and the sectors of bunkering, aviation, and bonded goods sit outside the tax.

Excise treatment changes too. EU minimum excise rates apply to tobacco and alcoholic beverages, with the aim of aligning to Spanish rates for those products and for fuel; by 10 April 2029 excise on fuel, alcohol, and tobacco is to come within 6% of equivalent Spanish rates. No excise applies to fuel for the first three years of the treaty.

Sourcing affects the bill for goods from Britain. Goods imported from the UK that do not meet the UK-origin rules under the UK-EU Trade and Cooperation Agreement attract EU Common External Tariff rates, with Transaction Tax applying on top where those goods are placed on the Gibraltar market. You can read the official summary in the technical notice.

Special customs procedures remain useful for deferral. EU goods may be entered into customs warehousing, inward processing, or temporary admission without triggering Transaction Tax or excise at importation; warehoused goods may stay between one and nine months, while inward processing and temporary admission run for three months with extensions available. A joint Gibraltar-Spain consultative body will monitor the effect of the rates on the market and may recommend a higher or lower standard rate for specific goods to avoid distortion.

ConclusionCopy link to section

For a foreign business owner, the practical weight of Gibraltar's import duty system sits less in its headline rates and more in the procedural discipline it demands at the frontier: correct commodity codes, complete documentation, and clear sight of which exemptions actually apply to the goods being moved. Get that operational layer wrong and the cost advantage of any concession disappears quickly.

The single thread worth acting on now is the planned replacement of import duties with a transaction tax, because that change will reset the commercial arithmetic for any business model built around current duty treatment, and a decision made today without accounting for that shift may need to be revisited sooner than expected.

How Expanship Can Help Your Business in GibraltarCopy link to section

Expanship advises foreign-owned companies on the customs and import duty position in Gibraltar, from confirming whether your goods carry duty or fall under the new Transaction Tax to preparing the licences and registrations clearance depends on. That advice fits within a wider service set for establishing and running an entity in the territory.

• Company formation and structuring for your trading or holding entity
• Registered agent and registered office services
• Tax registration and preparation of required filings
• Ongoing compliance management against statutory deadlines
• Accounting and bookkeeping aligned to your reporting obligations
• Introductions to banking partners for your operating accounts

To discuss your import plans or set up an entity, contact Expanship Gibraltar.

Frequently Asked QuestionsCopy link to section