How do you import a car into Gibraltar and what tax applies?

Question

Accepted Answer

Residents import a car by clearing it through HM Customs Gibraltar, paying the tax due, and then registering it with the DVLD for Gibraltar plates. Since 15 July 2026 the old import duty bands have been replaced by Transaction Tax, levied on vehicles at 15% in the first year regardless of whether the importer is an individual or a dealer.
Who can import
A car can be permanently imported and registered on Gibraltar plates if the owner is, or is becoming, resident in Gibraltar. Registration should be completed as soon as possible after the car arrives. Non-residents can bring a car in temporarily without registering it.
Step 1: HM Customs clearance
Present the vehicle and documents to HM Customs Gibraltar: proof of identity, proof of Gibraltar address, the registration certificate in your name and the purchase invoice. Customs assesses the tax and, once paid, issues a receipt and a letter confirming lawful import, which includes the vehicle's new Gibraltar registration number.
Step 2: Tax
Until 14 July 2026, cars attracted import duty in bands by engine size and fuel type, with lower rates for hybrids and 0% for fully electric cars. From 15 July 2026, when the UK-EU Agreement in respect of Gibraltar began to apply provisionally, Transaction Tax replaced import duty. The rate is 15% for the first year, rising to 16% and then to at least 17% (aligned with the lowest EU VAT rate). The taxable amount is based on the customs value plus transport, insurance and any other duties. Check with HM Customs whether any reduced rate applies to your vehicle type.
Step 3: DVLD registration
Take the Customs letter to the Driver and Vehicle Licensing Department. The DVLD checks that a used import meets Gibraltar's construction and equipment standards, and may require a roadworthiness test. You then receive a Gibraltar Certificate of Registration and can have G plates made.
Step 4: Insurance and licence
Arrange Gibraltar motor insurance and pay the annual vehicle licence before driving.

How do you import a car into Gibraltar and what tax applies?

Short answer

Detailed answer

Who can import

Step 1: HM Customs clearance

Step 2: Tax

Step 3: DVLD registration

Step 4: Insurance and licence