This tax guide provides an overview of the indirect tax system and rules to be aware of for doing business in Gibraltar.

Gibraltar - 120x120.pngIndirect tax snapshot

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What is the principal indirect tax?

In Gibraltar there is no Value Added Tax (VAT).
The principal indirect taxes are import and excise duties, stamp duty and gaming duty.


Import and excise duties


Gibraltar does not apply VAT but most goods imported into Gibraltar are subject to import duty at varying rates.
Motor vehicles, for example, attract duty at different rates, depending on the type and size of the engine and whether it is a dealer or private importation.
The most noticeable exceptions are food, tobacco and alcohol, which are subject to a fixed amount of duty regardless of the value.
There are goods that are exempt from import duty. Among these are gold bullion, classic cars (subject to conditions), electronic devices (portable computers, TVs), mobile phones, software, LED lighting, musical instruments, electrical audio, visual, sports and educational equipment, recycled stationery and writing materials, yachts and electronic equipment and propellers for use on boats.

Gibraltar also imposes an excise duty on several products, such as alcohol, tobacco and mineral oils.

Stamp duty

Stamp duty is payable in Gibraltar on the sale or transfer of any Gibraltar real estate or shares in a company owning Gibraltar real estate, currently at the following rates:

Purchase price of GBP 200,000 or less – Nil.
Purchase price between GBP 200,001 and GBP 350,000 – 2% on the first GBP 250,000 and 5.5% on the remaining balance.
Purchase price over GBP 500,000 – 3% on the first GBP 350,000 and 3.5% on the remaining balance.

For first and second time home buyers, there is no stamp duty payable on the first £260,000 of the purchase price, irrespective of the total cost of the property. Balances above GBP 260,000 (up to GBP 350,000) and above GBP 350,000, attract stamp duty at 5.5% and 3.5% respectively.

There is no stamp duty on transfers of properties between spouses.

Stamp duty is payable on mortgages secured on Gibraltar properties at the rate of 0.13% for mortgages of GBP 200,000 or less and 0.20% for mortgages over GBP 200,000.

Gaming duty

Gaming duty is levied at 0.15% of gross profits or gaming yield of licensees (bookmakers, betting intermediaries or gaming operators).

The first GBP 100,000 of the operator’s gross profits or gaming yield is exempt.

 

Is there a registration limit for the tax?

Import and excise duties are paid upon importation or as established by HM Customs Gibraltar. Stamp duty is paid upon execution. Gaming duty is paid quarterly by the licensed entities.

Does the same registration limit apply to non-established businesses?

Not applicable. As per 1. above.

Is there any specific legislation to tax non-resident supplies of electronically supplied/digital services to private consumers resident in your country?

Not applicable.

Does a non-established business need to appoint a fiscal representative in order to register?

Not applicable. As per 1. above. 

How often do returns have to be submitted?

The gaming licensee is required to produce and file audited accounts with the Licensing Authority during the license period and maintain financial records in accordance with the applicable law. It is required to meet all its taxation and filing requirements as set out in the Gambling Act 2005 and Companies Act 2014 respectively.

Are penalties imposed for the late submission of returns/ payment of tax?

Yes. Penalties can be imposed by the pertinent authorities for late filings and payments.

Are any other declarations required?

As per 6. above.

Are penalties imposed in other circumstances?

Yes. A range of penalties can be imposed by the pertinent authorities where businesses / licensees fail to comply with any of the rules and regulations as set out in the relevant legislations.

Loss of licence and legal proceedings may be brought in the case of serious offences.

Can the VAT incurred by overseas businesses be claimed if they are not registered in Gibraltar?

Not applicable. There is no VAT in Gibraltar.

 

What information must a VAT invoice show?

Not applicable. There is no VAT in Gibraltar.

Are there any current or anticipated Standard Audit File for Tax (SAF-T) or similar electronic/digital filing requirements eg invoice listing data file/real-time VAT reporting?

Not applicable. There is no VAT in Gibraltar.

Contact us

For further information on indirect tax in Gibraltar please contact:

 

Marisa Perera
T +350 20045502
E marisa.perera@gi.gt.com

 
International indirect tax guide

International indirect tax guide

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