Is shopping in Gibraltar still tax-free?

Short answer

Gibraltar has no VAT, but goods now carry a Transaction Tax, which replaced import duty on 15 July 2026 at a standard rate of 15% in the first year. Excise duties at EU minimum rates apply to tobacco and alcohol.

Detailed answer

The Transaction Tax is charged when goods are imported into or manufactured in Gibraltar, so it is built into shop prices. Reduced and zero rates apply to specified goods, with food and pharmaceuticals zero-rated.

Goods sold in Gibraltar must now meet EU product standards, and the Treaty caps the retail price difference on cigarettes between Gibraltar and Spain.