What are the rules for purchases made in the EU and brought back to Gibraltar under the 2026 UK/EU Treaty?
Short answer
For the first three years, an allowances regime applies: goods valued at EUR 300 or less in personal luggage by land (EUR 430 by sea/air) - you pay EU VAT and no Gibraltar transaction tax. Above the threshold, transaction tax must be declared and paid. Commercial deliveries require transit formalities. After three years, the allowances regime disappears and unlimited personal luggage purchases are exempt from transaction tax.
Detailed answer
For the first three years, an allowances regime applies. Any Gibraltar resident entering by land with purchased goods in personal luggage of EUR 300 or less will pay VAT in the EU and not pay transaction tax in Gibraltar. Above EUR 300, goods must be declared and transaction tax paid. For goods transported by a commercial operator, irrespective of value, a transit regime must be opened and transaction tax paid upon arrival. By sea or air, the threshold is EUR 430 instead of EUR 300. For travellers under 15, the threshold is EUR 175 for entry into Gibraltar and EUR 150 for entry into Spain. After the first three years, the allowances regime disappears and travel is treated as between EU Member States, with unlimited personal luggage purchases allowed.