Gibraltar Business Support 2026

Last reviewed: 17 July 2026

Gibraltar's 2026 business-support package is designed to help eligible businesses adjust to the replacement of Import Duty by Transaction Tax and the wider post-Treaty trading environment.

The package is not one automatic grant. It combines two alternative support schemes with measures concerning business rates, certain commercial rents and recruitment costs. Eligibility, evidence, exclusions, financial caps and the final implementing rules matter.

This guide explains what has been announced, what businesses should do now and which details must be confirmed from the operative rules. It is general information, not individual tax, legal, accounting, property or State Aid advice.

Business support at a glance

• The Transaction Tax Transition Support Scheme is for eligible businesses able to show that they are materially worse off under Transaction Tax than under the former Import Duty system.
• The first comparison is retrospective after the initial 90 days, using actual evidence.
• The Business Adaptation and Modernisation Support scheme is an alternative for eligible retail and hospitality businesses investing in improvement and resilience.
• A business may apply for only one of the two schemes.
• Applicants must be up to date with PAYE, social insurance, corporation tax and filing obligations.
• Supermarkets and retailers of tobacco, wine, spirits, fuel and vehicles are excluded under the announced terms.
• Recovery is capped by reference to corporation-tax profits previously paid and must remain within State Aid and Treaty limits.
• The package includes business-rates relief, extended to restaurants.
• A 24-month moratorium on certain commercial rent increases was announced for relevant retail shops and wholesale stores.
• A 36-month waiver of vacancy-registration fees was also announced.

Who the support package is intended to help

The package is aimed at businesses most affected by the transition to Transaction Tax. It is particularly relevant to retailers, wholesalers, importers, restaurants and hospitality businesses facing the tax costs, customs processes, systems, margins and cashflow issues explained in Gibraltar.com's live Transaction Tax explainer.

Related guides: Gibraltar–EU Treaty 2026 Explained | Gibraltar Transaction Tax 2026

Transaction Tax Transition Support Scheme

The Transaction Tax Transition Support Scheme is intended to assist an eligible business that can demonstrate it is materially worse off under the new system.

The business must compare:

• the amount it would have paid under the former Import Duty regime; with
• the amount it actually paid under Transaction Tax for the same relevant period.

The comparison needs reliable product, import, valuation and tax data. A broad assertion that costs have risen will not be enough, so an Accountant may need to reconstruct the old and new cost positions and organise the supporting records.

The first assessment is intended to take place retrospectively after 90 days. This allows the position to be assessed against actual trading, import and payment data rather than forecasts alone. A tax consultant or business adviser can examine uncertain tax treatment within the comparison, while a corporate lawyer can address legal eligibility or a dispute over the scheme rules. This is developing legislation and may be subject to change. Stay informed through your professional advisers and Gibraltar.com updates.

Business Adaptation and Modernisation Support

The second scheme is an alternative intended to help eligible businesses invest in becoming more efficient, resilient and competitive in the new trading environment.

The announced areas of potential support include:

• digital and business systems;
• process improvement;
• consultancy;
• innovation;
• staff training;
• changes to operating procedures;
• adaptation of business premises;
• other practical modernisation measures within the final rules.

This is not an unrestricted subsidy. A business should be able to explain what it plans to change, why the change is necessary, what it will cost, what benefit is expected and how delivery will be evidenced. A business adviser can help turn an operational problem into a defined modernisation project, while the relevant software, training, premises or professional supplier should provide project-specific quotations and delivery evidence. This is developing legislation and may be subject to change. Stay informed through your professional advisers and Gibraltar.com updates.

A business cannot claim both schemes

The two schemes are alternatives. A business may apply for only one.

That makes the initial decision important. A business with a direct measurable tax disadvantage may favour transition support. A business with a stronger case for investment in systems, training, premises or process improvement may favour adaptation and modernisation support.

The better route depends on the figures, eligible costs, evidence, limits and final scheme rules.

Eligibility, exclusions and compliance

The announced package targets businesses most affected by the transition, but not every business qualifies.

Under the announced terms, neither scheme applies to:

• supermarkets;
• tobacco retailers;
• wine and spirits retailers;
• fuel retailers;
• vehicle retailers.

Applicants must also be up to date with:

• PAYE payments;
• social-insurance payments;
• corporation-tax payments;
• applicable filing requirements.

The formal definitions matter. A mixed business, group, concession, franchise or business operating across more than one sector should not assume its position from a general label.

Financial cap and State Aid controls

The announced recovery under either scheme is capped so that it:

• is no more than 50% of the corporation-tax profits paid by the business in the relevant previous tax year or years;
• does not infringe applicable State Aid rules;
• does not infringe the Treaty.

Businesses should not estimate the cap from turnover, gross profit, accounting profit or the corporation-tax rate without checking the defined calculation.

Business-rates relief

The transition package includes relief from business rates for the relevant initial six-month period. The Budget debate stated that this measure would extend to restaurants on the same basis as retail.

The final rules should confirm the businesses and premises covered, the qualifying period, whether relief is automatic or claimed and how mixed-use premises or changes of tenant are treated.

Commercial rent moratorium

A 24-month moratorium on rent increases was announced for relevant retail shops and wholesale stores. The original package also proposed a Government surcharge on rental income where a landlord increases rent contrary to the moratorium.

This does not necessarily freeze every payment under every commercial lease. Landlords and tenants should check the premises, use, dates, lease terms, renewals, service charges and enforcement provisions with a Commercial Property Lawyer or estate agent where the rent or lease position is material.

Recruitment and vacancy-registration fees

The package includes a 36-month waiver of vacancy-registration fees with the Employment and Training Board. This is intended to reduce a recruitment cost while businesses adjust and hire.

The waiver does not remove employment-registration, wage, pension, payroll or contractual obligations.

Records businesses should preserve now

Businesses should not wait for an application form before organising evidence. At minimum, preserve:

• historic Import Duty declarations and payments;
• Transaction Tax declarations and payments;
• supplier invoices and credit notes;
• freight, insurance, packing, commission and incidental-cost records;
• product and commodity classifications;
• stock receipts, movements and sales data;
• accounting entries and reconciliations;
• pricing and margin information;
• PAYE, social-insurance and corporation-tax records;
• filed returns and proof of filing;
• project quotations, approvals, contracts, invoices and payment evidence for modernisation expenditure.

Practical preparation checklist

• Identify which goods and business activities are affected.
• Confirm product classifications and Transaction Tax treatments.
• Calculate landed cost using the correct taxable-value components.
• Preserve a product-level comparison with former Import Duty.
• Review margins, pricing and cashflow.
• Reconcile customs, stock, EPOS and accounting data.
• Check PAYE, social-insurance, corporation-tax and filing compliance.
• Decide whether the transition scheme or modernisation scheme presents the stronger case.
• Review business-rates and lease implications separately.
• Assign responsibility for monitoring regulations, application dates and quarterly reviews.

This section provides general information only and is not a substitute for advice based on the reader’s particular circumstances. Rules, eligibility and outcomes may depend on the final legislation, guidance and individual facts. Before acting, readers should confirm the current position and take appropriate advice from a suitably qualified professional service provider in the relevant field.

Frequently asked questions

What business-support schemes were announced in the 2026 Budget?

The Government announced two alternative schemes: Transaction Tax Transition Support and Business Adaptation and Modernisation Support. Additional measures include business-rates relief, a commercial rent moratorium and a waiver of vacancy-registration fees.

Who is the support package intended to help?

The package is aimed at eligible businesses materially affected by the transition from Import Duty to Transaction Tax. It is particularly relevant to retailers, wholesalers, importers, restaurants and hospitality businesses facing increased tax or adaptation costs.

Is the support automatic?

No. The announced schemes require eligibility, compliance and supporting evidence. The final regulations and application process will determine entitlement.

Can a business claim both schemes?

No. Transaction Tax Transition Support and Business Adaptation and Modernisation Support are alternatives. A business may apply for only one of them.

How will Transaction Tax Transition Support be assessed?

The scheme is intended to compare what a business would have paid under the former Import Duty regime with the Transaction Tax it actually paid for the same period. The initial assessment is intended to take place retrospectively after 90 days.

What can Business Adaptation and Modernisation Support cover?

The announced areas include digital and business systems, process improvement, consultancy, innovation, staff training, changes to operating procedures and adaptation of business premises. The final regulations will determine which projects and costs qualify.

Are any business sectors excluded?

Under the announced terms, the schemes do not apply to supermarkets, tobacco retailers, wine and spirits retailers, fuel retailers or vehicle retailers. Final definitions will be important where a business operates across more than one sector.

What compliance conditions apply?

Applicants must be up to date with PAYE, social-insurance and corporation-tax payments, as well as applicable tax returns and filing obligations. State Aid limits, Treaty requirements and the final scheme regulations will also apply.

How much support can a business receive?

The announced recovery under either scheme is capped so that it does not exceed 50% of the corporation-tax profits paid by the business in the relevant previous tax year or years. Final regulations will determine how the cap is calculated and applied.

Is every increase in tax reimbursed?

No. The scheme targets material disadvantage and is evidence-based. Eligibility, excluded sectors, caps and other controls apply.

What records should businesses preserve?

Businesses should retain historic Import Duty declarations and payments, Transaction Tax records, supplier invoices, customs documents, product classifications, stock and EPOS records, accounting entries, tax filings and supporting evidence for any proposed modernisation expenditure.

Are restaurants included in the business-rates relief?

The Budget debate stated that the business-rates measure would be extended to restaurants on the same basis as retail. The implementing regulations will define the precise entitlement.

Does the rent moratorium cover every commercial property?

No general assumption should be made. The moratorium was announced for relevant retail shops and wholesale stores, subject to the final regulations.

When can businesses apply?

Businesses should not assume that applications are open until the regulations, eligibility rules, application documents and commencement arrangements have been published. In the meantime, they should preserve the relevant records and prepare the evidence likely to be required.

Related guides: Gibraltar Budget 2026 Explained | Gibraltar Transaction Tax 2026 | Gibraltar Budget 2026 for Companies | Gibraltar–EU Treaty 2026 Explained