Gibraltar Tax Facts

Last reviewed: 17 July 2026

2026–2027 Rates, Allowances and Budget Updates

Gibraltar Tax Facts provides a practical overview of the principal taxes, allowances, specialist regimes and related measures affecting individuals and businesses. This update retains the existing factual sections and incorporates the tax measures and announcements arising from Gibraltar Budget 2026.

Current legislation and official guidance control the outcome in every case. Budget announcements that still require detailed rules are identified separately and should not be treated as operative entitlements until the relevant legislation, tables or guidance are published.

Budget 2026: the main tax updates

• Transaction Tax replaced the former Import Duty framework for goods from 15 July 2026. It applies to goods rather than ordinary services and does not introduce EU VAT in Gibraltar.
• The standard Transaction Tax rate is 15% for the first 12 months, 16% for the second 12 months and then 17%, or the applicable statutory rate determined under the formula, after 24 months. Defined goods may qualify for reduced, zero-rated or exempt treatment.
• The standard corporation-tax rate remains 15%. Budget 2026 did not announce a general increase for ordinary companies. The Global Minimum Tax remains a separate regime for qualifying multinational groups.
• Budget 2026 announced inflation-linked increases to tax allowances. Individual calculations should use the final operative 2026/27 table and the current Income Tax Office calculator rather than assuming that a general inflation announcement produces the same result for every taxpayer.
• A new tax allowance was announced for fees earned by Gibraltar-resident musicians performing locally where the earnings are reinvested in equipment and instruments. The Budget stated that the measure would apply retrospectively from July 2019, but the detailed legal conditions and claim process must be confirmed before it is relied upon.

Official source: Chief Minister’s Budget Address 2026

Related guides: Gibraltar Budget 2026 Explained | Gibraltar Transaction Tax 2026 | Pensions, Benefits and Personal Tax 2026 | Minimum Wage and Workplace Pensions 2026

1. Personal Tax Systems

Individuals may be taxed under the Gross Income Based System (GIBS) or the Allowance Based System (ABS). The two systems calculate liability differently, and the current Income Tax Office calculator should be used to compare the result for the relevant tax year.

Gross Income Based System (GIBS)

For gross assessable income not exceeding £25,000, the current published bands are 6% on the first £10,000, 20% on the next £7,000 and 28% on the balance. For income above £25,000, the current published bands begin at 16%, followed by 19%, 25% and 28% bands, with the balance then taxed at 25%.

The existing Gibraltar Tax Facts page also identifies deductions under GIBS for matters including mortgage interest, pensions, medical insurance, property-frontage improvements, solar energy and electric-vehicle chargers, subject to the applicable limits and conditions.

Allowance Based System (ABS)

Under ABS, allowances are deducted from assessable income before the graduated rates are applied. The current published rates are 14% on the first £4,000 of taxable income, 17% on the next £12,000 and 39% on the balance.

The Income Tax Office currently displays the 2025/26 allowance figures, including personal and spouse or civil-partner allowances of £3,455, a single-parent allowance of £5,800, a nursery-school allowance of up to £5,480 and a blind-person allowance of £5,475. Budget 2026 announced inflation-linked increases, so these figures should not be presented as the final 2026/27 table unless and until the operative figures are confirmed.

Where the treatment or calculation is uncertain, a Tax Consultant or Accountant can apply the current rules to the taxpayer’s circumstances.

Official sources: Income Tax Office | PAYE, allowances and 2026/27 calculator

Related guide: Pensions, Benefits and Personal Tax 2026

2. Specialist Tax Categories

Category 2 individuals are taxed on the first £118,000 of assessable income. The current published minimum annual liability is £37,000 and the maximum is £42,380. HEPSS individuals are taxed under GIBS on the first £160,000 of assessable income, with the current published annual liability stated as £39,940.

No direct Budget 2026 change to Category 2 or HEPSS has been identified in the material reviewed. Both remain specialist tax and residence regimes with separate certification, accommodation, eligibility and continuing-compliance requirements.

Eligibility and structuring may require coordinated advice from a Tax Consultant and an appropriate Lawyer.

Official source: Income Tax Office — Qualifying Individuals

Related guides: Category 2 Status | HEPSS Status

3. Corporate Taxation

The standard corporation-tax rate is 15% from 1 July 2024. Gibraltar taxes income accrued in or derived from Gibraltar. The Income Tax Office states that utility companies and companies enjoying a dominant market position are liable at 20%; electricity, fuel and water providers are included, while telecommunications income is subject to the published sector treatment.

Budget 2026 did not announce a general increase in the standard rate. Existing incentives and deductions may apply to qualifying expenditure such as training, renewable energy and energy-efficient improvements, subject to the legislation and the facts.

Companies should use an Accountant or Tax Consultant for source, deduction, filing and payment questions that depend on their activities.

Official source: Income Tax Office — Corporate

Related guides: Budget 2026 for Companies | Gibraltar Company Formation Guide | Gibraltar Tax and Regulatory Overview

4. Trusts and Foundations

Trusts and foundations are taxed at 15% from 1 July 2024. Non-resident structures are taxed only on income from Gibraltar sources, subject to the applicable residence, source, receipt, anti-avoidance and reporting rules.

The practical treatment of a structure may require a suitably experienced Lawyer, Trust Company and tax adviser.

5. Residency Rules

For tax purposes, an individual is ordinarily resident if present in Gibraltar for at least 183 days in a year of assessment or for more than 300 days in aggregate over three consecutive years. The tax-residence test is distinct from the immigration and residence-permit framework.

The existing Gibraltar Tax Facts page also notes the treatment of non-residents present for fewer than 30 days in relation to directors’ fees and work performed abroad. The source, receipt and activity rules should be checked before that summary is applied to an individual case.

Cross-border or relocation cases may require a Tax Consultant and a residency lawyer.

Related guide: Gibraltar Residency 2026

6. Indirect Taxes and Levies

Gibraltar has not introduced EU VAT. From 15 July 2026, however, Transaction Tax replaced the former Import Duty framework for goods. It is charged by reference to the statutory customs-value rules and is not a general tax on ordinary services or an automatic percentage added to the retail selling price.

The standard rate starts at 15% for the first 12 months, rises to 16% for the second 12 months and then moves to 17%, or the applicable statutory rate under the formula. A 5% reduced rate, zero-rated treatment and exemptions apply to defined goods. Product classification and the current tariff are therefore essential.

The existing page also records that stamp duty ranges from 2% to 5.5%, with relief for qualifying first-time buyers, and that the sustainable-tourist levy is £3.50 per night while the cruise-passenger levy is £1. Those charges remain separate from Transaction Tax.

Businesses importing goods may need a Customs Agent or Freight Agent and Forwarder after checking the applicable commodity classification and documentation.

Official sources: Government Transaction Tax explanation | HM Customs Harmonised Tariff

Related guides: Gibraltar Transaction Tax 2026 | Treaty Practical Update

7. Employment, Social Insurance and Benefits in Kind

The existing page records headline social-insurance contribution rates of 18% for employers, 10% for employees and 20% for the self-employed. The applicable minimums, maximums, caps and contribution periods should be checked against the current official tables.

Approved employer contributions to occupational or personal pension schemes are not generally treated as benefits in kind, while other benefits can have a taxable value. The Income Tax Office states that the first £250 of benefits in kind is exempt under the current published treatment.

Budget 2026 also increased the statutory minimum wage to £10 an hour and continued the workplace-pension implementation timetable. These are employment and payroll measures rather than changes to the general corporation-tax rate.

Official source: Income Tax Office — PAYE

Related guide: Minimum Wage and Workplace Pensions 2026

8. Corporate and Property Measures

The existing page records first-year capital allowances of up to £30,000 for plant and machinery and up to £50,000 for computer equipment, followed by the published annual allowance treatment. It also notes the rules taxing specified repeated disposals of residential property, including sales of five or more properties over the relevant periods.

These provisions are fact-sensitive. A property disposal, development activity, capital-allowance claim or mixed personal and business use should be checked under the operative law rather than from a headline summary alone.

An Accountant or Tax Consultant can establish how the current provisions apply to the expenditure or disposal.

9. BEPS Pillar Two and Multinational Compliance

Gibraltar has implemented the OECD Pillar Two global minimum-tax framework for multinational enterprise groups meeting the €750 million revenue threshold. The regime is designed to secure a 15% minimum effective rate for qualifying groups and is not a general additional tax on every local company.

Budget 2026 estimated at least £25 million of Global Minimum Tax revenue for the year ahead. That revenue estimate does not change the eligibility threshold or replace the detailed multinational-group rules.

10. Summary and Key Takeaways

• Gibraltar’s standard corporation-tax rate remains 15%, with specified companies and activities subject to the 20% treatment.
• Individuals continue to use ABS or GIBS, but 2026/27 calculations must use the final operative rates, allowances and current calculator.
• Category 2 and HEPSS remain specialist regimes; no direct Budget 2026 change has been identified in the material reviewed.
• Gibraltar has no EU VAT, but Transaction Tax now applies to goods under the new framework.
• The Global Minimum Tax is limited to qualifying multinational groups and should not be confused with the standard corporation-tax regime.
• Budget announcements should be distinguished from enacted rules and published guidance before decisions are made.

Important information

This guide 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 legislation, guidance and individual facts. Where Budget measures have been announced but the detailed operative rules are not yet available, the final legislation and official guidance may differ from the outline above.

If any of the matters covered affect you or your business, seek advice from an appropriately qualified professional. The Gibraltar.com Business Directory provides a general starting point for finding professional service providers, and contextual links in this guide identify relevant service categories. Inclusion is not a recommendation or endorsement. Readers should make their own enquiries before appointing any provider.