Tax legislation in Gibraltar is amended periodically, either through government-led initiatives or in response to industry-driven proposals. While EU directives previously influenced legislative updates, current amendments typically originate from the Government of Gibraltar. Proposed changes are introduced to the Gibraltar Parliament in the form of a bill, where they undergo debate and scrutiny before being enacted into law.

Gibraltar’s tax year runs from 1 July to 30 June.

Individuals and Trusts
Taxpayers other than companies, such as individuals and trusts, with income assessable in Gibraltar are required to file their annual tax returns by 30 November following the end of the relevant tax year.

Companies
Corporate taxpayers must file tax returns based on their financial year end. Returns must be submitted within nine months of the financial year’s close.
For example:

• A company with a 31 December year end must file its return by 30 September.
• A company with a 30 June year end must file by 30 March.

Record-Keeping Requirements
All taxpayers, including individuals, companies, and trusts, must maintain comprehensive records of business transactions for a minimum of six years from the end of the relevant tax period. Required documentation includes:

• Daily cash books (receipts and payments)
• Annual stocktaking statements
• Detailed records of goods sold and purchased (including buyer/seller identification)
• Contracts, invoices, and other documents relevant to the taxpayer’s trade, profession, or vocation

The principal tax authority in Gibraltar is the Commissioner for Income Tax, who oversees the Income Tax Office and is responsible for the administration and collection of taxes. Oversight ultimately rests with the Minister for Finance, who holds political accountability for the office’s operations.

Engagement with taxpayers is typically conducted on a case-by-case basis, with the Income Tax Office maintaining a reputation for being accessible, responsive, and solution-oriented. Tax matters are generally resolved through direct communication, fostering a collaborative approach to compliance and issue resolution.

Yes, Gibraltar has an independent Income Tax Tribunal responsible for adjudicating tax-related disputes. Tribunal members are appointed by the Minister for Finance via notice in the Gazette and typically serve for one year, unless otherwise specified in their appointment.

Proceedings are initiated when a party serves notice on the Tribunal’s clerk requesting a hearing date. Upon receipt, the clerk notifies all entitled parties of the time, date, and location of the hearing. Unless agreed otherwise, hearings are scheduled no earlier than 28 days from the date of notification.

If a party is dissatisfied with the Tribunal’s decision on a point of law, they may, within 21 days of the final determination, request the Tribunal to state a case for the opinion of the Supreme Court, subject to payment of the prescribed fee.

Additionally, the Tax Dispute Resolution Regulations 2019, introduced on 26 July 2019, implement Council Directive (EU) 2017/1852. These regulations establish a framework for resolving cross-border tax disputes between EU Member States, particularly those arising from the interpretation or application of double taxation agreements. The Directive also outlines the rights and obligations of affected taxpayers in such cases.

Individuals
Employment income is taxed under Gibraltar’s Pay As You Earn (PAYE) system, whereby employers must deduct tax and social insurance contributions from salaries and remit them by the 15th of the following month.

Self-employed individuals are required to make two payments on account annually, by 31 January and 30 June, each representing 50% of the prior year’s tax liability. Any outstanding balance is payable by 30 November, when the annual tax return is submitted.

Companies
Corporate taxpayers must also make two payments on account, due by 28 February and 30 September, each equal to 50% of the tax paid for the relevant accounting period as defined under the Income Tax Act 2010. The final balance is payable upon submission of the company’s tax return.

Trusts
Trustees of trusts with assessable income in Gibraltar follow the same payment schedule as self-employed individuals: 31 January and 30 June for payments on account, with the final balance due by 30 November alongside the trust’s tax return.

Disputed Tax Amounts
Taxpayers may appeal an assessment by submitting a written notice to the Commissioner for Income Tax within 28 days of receiving the assessment. Appeals are heard by the Income Tax Tribunal, and the notice must clearly outline the grounds for appeal to ensure transparency and procedural fairness.

Yes, the Income Tax Office in Gibraltar is subject to strict confidentiality obligations and must comply with the provisions of the General Data Protection Regulation (GDPR), which has been transposed into Gibraltar law through the relevant European Directive.

However, the Tax Office may be required to disclose taxpayer information if the individual is subject to an investigation by another tax authority. Such disclosures are only permitted where the request is made in accordance with a valid Tax Exchange of Information Treaty or applicable directive, ensuring that data sharing is governed by established legal frameworks.

Yes, Gibraltar is a signatory to the Common Reporting Standard (CRS), reflecting its commitment to international transparency and the automatic exchange of financial account information.

In addition, Gibraltar maintains a public register of beneficial ownership, administered by the Finance Centre. This register supports the jurisdiction’s efforts to combat financial crime and enhance corporate transparency, in line with global standards.

A company is considered ordinarily resident in Gibraltar if it is either:

• Managed and controlled within Gibraltar; or
• Managed and controlled outside Gibraltar by individuals who themselves are ordinarily resident in Gibraltar.

For individuals, residence is determined based on physical presence. An individual is deemed ordinarily resident in Gibraltar for a given tax year if:

• They are present in Gibraltar for at least 183 days during that year; or
• They are present in Gibraltar during any one year out of three consecutive years, and their total presence across those three years exceeds 300 days.

Yes, Gibraltar actively monitors cross-border transactions through its Mandatory Disclosure Regime (MDR), which requires the disclosure of certain arrangements to the Commissioner of Income Tax. Specifically, arrangements falling under Category D hallmarks of the EU Directive on cross-border tax arrangements (DAC6) must be reported. These include structures that obscure beneficial ownership or undermine reporting obligations under EU legislation or equivalent international agreements on the automatic exchange of financial account information.

For arrangements involving Gibraltar and Spain, all DAC6 hallmarks (Categories A to E) must be considered, reflecting the enhanced scrutiny applied to transactions between these jurisdictions.

Reporting Obligations

Under MDR, the duty to report lies with the intermediary, or, if no intermediary is involved, the taxpayer. An intermediary is broadly defined as any professional who assists in the design, marketing, implementation, or management of a reportable arrangement. This typically includes tax advisors, lawyers, company managers, and in some cases, insurance managers or financial institutions.

An intermediary is deemed to have a reporting obligation if they:

• designs, markets, organises or makes available for implementation or manages the implementation of a reportable cross-border arrangement; or
• having regard to the relevant facts and circumstances and based on available information and the relevant expertise and understanding required to provide such services, knows or could be reasonably expected to know that they have undertaken to provide, directly or by means of other persons, aid, assistance or advice with respect to designing, marketing, organizing, making available for implementation or managing the implementation.

Yes, Gibraltar has implemented Controlled Foreign Corporation (CFC) rules designed to counteract tax avoidance through non-genuine arrangements involving low-tax jurisdictions.

Under the regime, the non-distributed income of a foreign entity or permanent establishment may be attributed to a Gibraltar taxpayer if the arrangement is deemed non-genuine and primarily structured to obtain a tax advantage. Such income must be included in the taxpayer’s assessable income for the relevant tax period.

To qualify as a CFC, two conditions must be met:

1. The taxpayer (alone or with associated enterprises) must hold more than 50% of the voting rights, capital, or profit entitlement in the foreign entity.
2. The actual tax paid by the entity must be significantly lower than the tax that would have been charged under Gibraltar law.

An arrangement is considered non-genuine if the foreign entity would not own the relevant assets or undertake the associated risks without being controlled by the Gibraltar taxpayer. In such cases, income is attributed based on the arm’s length principle.

In order to ensure that there is no double deduction:

1. where the entity distributes profits to the taxpayer, and those distributed profits are included in the assessable income of the taxpayer, the amounts of income previously included as income of the taxpayer shall be deducted from the income of the taxpayer when calculating the amount of tax due on the distributed profits;
2. where the taxpayer disposes of its participation in the entity of the business carried out by the permanent establishment, and any part of the proceeds from the disposal previously having been included in the income of the taxpayer, that amount shall be deducted from the income of the taxpayer when calculating the amount of tax due on those proceeds; and
3. the Commissioner of Income Tax shall also allow a deduction of the tax paid by the entity or permanent establishment in its state of residence or location from the tax liability of the taxpayer in accordance with section 37 of the Act.

Exemptions apply to entities or permanent establishments with:

• Accounting profits not exceeding €750,000, and
• Non-trading income not exceeding €75,000, or
• Accounting profits amounting to no more than 10% of operating costs for the tax period.

Transfer Pricing
Gibraltar does not have a standalone transfer pricing regime. However, the general anti-avoidance rule under the Income Tax Act is interpreted in line with the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, as well as other designated transfer pricing materials. This ensures consistency with international standards in assessing related-party transactions.

Thin Capitalization
Gibraltar applies thin capitalization rules whereby interest paid on loans to related parties (excluding companies), or loans secured by related parties, may be recharacterized as dividend payments if the debt-to-equity ratio exceeds 5:1. In such cases, the interest is not deductible for tax purposes.

Safe Harbour
On the 20 December 2022, the OECD released new documents relating to the global minimum taxation rules, one of which is the “guidance on safe harbours and penalty relief”, which contains an agreed temporary “CbCR safe Harbour” for the initial three years. The Globe rules form part of the Pillar Two initiative.

The Income Tax Act contains an interest limitation rule provision, which applies to ordinarily resident companies which have assessable income under the provisions of the Income Tax Act, or permanent establishments of any such company resident in another European Union Member State or a third country. However, financial undertakings and standalone entities are specifically excluded from the scope of the interest limitation rule. Additionally, under the Income Tax Act there is a “safe harbour clause”, which allows for exceeding borrowing costs incurred by a taxpayer to be deductible in the tax period in which they are incurred up to €3,000,000 for the entire group regardless of the EBITDA.

Advance Pricing Agreements
Gibraltar does not currently offer bilateral advance pricing agreements. There is no formal mechanism for taxpayers to agree in advance with Gibraltar’s tax authorities, and those of another jurisdiction, on the pricing of cross-border transactions.

Yes, Gibraltar’s Income Tax Act contains robust anti-avoidance provisions. Under these rules, the Commissioner of Income Tax is empowered to disregard all or part of any arrangement deemed to be artificial or fictitious, where the primary purpose is to reduce or eliminate tax liability in Gibraltar.

Taxpayers, particularly companies, are expected to comply with the GAAR and to align their practices with international standards, including OECD principles. Enforcement is typically carried out through administrative review, and where necessary, disputes may be escalated to the Income Tax Tribunal or resolved through direct engagement with the tax authorities.

No, Gibraltar does not currently impose a digital services tax. There is no formal indication at present of plans to introduce, withdraw, or amend such a tax in connection with any future multilateral framework.

Yes, Gibraltar is actively engaged in the implementation of the OECD’s Base Erosion and Profit Shifting (BEPS) recommendations, including the Two-Pillar Solution addressing the tax challenges of the digital economy.

In July 2023, Gibraltar joined 138 out of 143 members of the OECD/G20 Inclusive Framework in endorsing an outcome statement that marked significant progress toward reforming the international tax system. This statement outlines key deliverables, including:

• A multilateral convention enabling jurisdictions to reallocate taxing rights over a portion of multinational enterprise (MNE) residual profits.
• A simplified framework for applying the arm’s length principle to baseline marketing and distribution activities.
• A Subject to Tax Rule (STTR) and implementation framework allowing developing countries to “tax back” certain intra-group income subject to low or nominal taxation.
• A comprehensive OECD action plan to support coordinated implementation of the Two-Pillar Solution.

On 31 December 2024 legislation was passed implementing the Pillar Two global minimum rax rules in Gibraltar. The legislation confirms a 15% domestic minimum top-up tax (DMTT) which would apply to multinational enterprise (MNE) groups and domestic groups meeting the revenue threshold for financial years starting on or after 31 December 2023. The legislation has also introduced an income inclusion rule (IIR) that would apply for financial years starting on or after 31 December 2024.

Gibraltar has consistently maintained a policy of offering a competitive yet compliant tax environment, aligning with international best practices. Successive governments have demonstrated a strong commitment to the OECD’s Base Erosion and Profit Shifting (BEPS) framework, often acting as an early adopter of global tax transparency and anti-avoidance measures.

This proactive stance is expected to continue, with Gibraltar actively engaging in the implementation of BEPS-related reforms, including the Two-Pillar Solution, to ensure the jurisdiction remains aligned with evolving international standards.

Gibraltar operates its own independent tax system, but it is aligned with international standards. The jurisdiction has been placed on the OECD white list for having substantially implemented the internationally agreed standard on tax information exchange. In September 2020, Gibraltar was rated ‘Largely Compliant’ in an OECD peer review, maintaining its standing alongside jurisdictions such as the UK, US, Germany, and Spain.

Corporate Tax
Gibraltar taxes profits accrued and derived in Gibraltar from activities or services carried out within the jurisdiction. The corporate tax rate is 15%, following an increase in July 2024 to align with the OECD’s global minimum tax standard.

Personal Income Tax
Individuals are taxed on income accruing in or derived from Gibraltar, and in certain cases, on income received from outside Gibraltar if they are ordinarily resident. Taxpayers may choose between two systems:

• The Gross Income Based System (GIBS)
• The Allowance Based System (ABS)
  The Commissioner of Income Tax will assess the taxpayer under the system that yields the most beneficial outcome, regardless of the initial choice.

Other Taxes

• VAT: Gibraltar does not levy VAT.
• Capital Gains Tax: There is no capital gains tax in Gibraltar.
• Stamp Duties: Stamp duty is applicable on certain transactions, such as property transfers, with rates depending on the value and nature of the transaction.
• Indirect Taxes: While VAT is not applied, Gibraltar imposes import duties on certain goods.
• Savings Income and Royalties: These may be subject to tax depending on the residency and source of income.
• Income from Land: Rental income from Gibraltar-based property is taxable.

GIBS Rates (currently in force 2025/2026)

ABS Rates (currently in force 2025/2026)

Yes, Gibraltar levies corporate tax on profits accrued and derived in Gibraltar, and the computation of taxable profits generally follows UK or EU accounting principles, depending on the nature of the transaction. This approach ensures consistency with internationally recognised standards and supports transparency in financial reporting.

Yes, companies and trusts with assessable income in Gibraltar are treated as taxable entities and are subject to tax at the standard corporate rate of 15%.

Partnerships, however, are considered tax transparent. Tax liability arises at the level of the individual partners, who are taxed on their share of the partnership’s income in accordance with Gibraltar’s personal income tax rules.

Gibraltar operates a territorial tax system, meaning liability to business taxation is determined by whether income accrues in or is derived from Gibraltar, rather than by tax residence or registration.

Income is considered to accrue or derive from Gibraltar if it results from:

• Activities or services performed within Gibraltar, or
• Licensed and regulated activities under Gibraltar law, or
• Activities licensed in another jurisdiction but benefiting from passporting rights into Gibraltar.

The term “accrued in and derived from” is defined by reference to the location of the activities that generate the profits. For example, intercompany interest or royalties received by a Gibraltar company are automatically deemed to be accrued in and derived from Gibraltar, and therefore taxable.

Income that does not accrue in or derive from Gibraltar is not subject to tax in Gibraltar.

Suggest keeping the same as the amendment not suitable.

No, Gibraltar does not currently offer any specific tax regimes for intellectual property, such as a patent box. IP-related income is taxed under the general provisions of the Income Tax Act, without preferential treatment at this time.

Gibraltar does not permit fiscal consolidation for tax purposes. While consolidated financial accounts may be prepared for commercial reporting, group relief is not available under Gibraltar tax law.

Each entity within a group is taxed individually based on its own assessable profits. There is no mechanism for offsetting losses across group companies. However, losses may be carried forward indefinitely by the entity that incurred them, subject to the usual conditions under the Income Tax Act.

Gibraltar does not impose withholding taxes on most payments. The only exceptions are:

• Payments to subcontractors in the construction industry, and
• Employment income, which is subject to withholding under the Pay As You Earn (PAYE) system.

Outside of these specific cases, Gibraltar does not levy withholding tax on dividends, interest, royalties, or other cross-border payments.

Not at present.

No, Gibraltar does not impose tax on dividend income received by a Gibraltar company from any other company, regardless of the jurisdiction of incorporation. Similarly, dividends paid between Gibraltar companies are not subject to tax, and non-resident recipients of dividends from Gibraltar companies are also exempt from Gibraltar tax on such income.

For ordinarily resident individuals, dividends are generally not taxable if they represent the distribution of profits that were not assessable to tax in Gibraltar in the hands of the distributing company.

There is no withholding tax on dividends paid. However, when a company declares a dividend, it must file a return of dividends with the Income Tax Office, except in the case of listed companies, which are exempt from this requirement.

Gibraltar offers a compelling proposition for international groups considering relocation. As a UK Overseas Territory, Gibraltar continues to benefit from access to UK financial markets, even post-Brexit, ensuring continuity and stability for businesses transitioning from the UK.

Strategically located at the gateway to the Mediterranean and within the geographic bounds of continental Europe, Gibraltar combines European proximity with a familiar and reliable common law legal system, making it an attractive jurisdiction for both individuals and corporate entities.

Gibraltar has a long-standing policy of aligning with international standards, including those set by the OECD. It has consistently demonstrated a commitment to regulatory compliance, transparency, and tax cooperation, as evidenced by its inclusion on the OECD white list and its rating of ‘Largely Compliant’ in the OECD’s 2020 peer review.

While Gibraltar is not part of the EU, it continues to reflect EU-aligned standards in its domestic legislation, offering a stable and predictable regulatory environment for cross-border operations.