- The EU and Gibraltar will form a customs union to remove physical land border barriers.
- Gibraltar will replace VAT with a new Transaction Tax, with the standard rate rising from 15% to 17% over three years, plus reduced and 0% rates for essential goods.
- Gibraltar’s special taxes/excise duties will be aligned with EU minimum standards and kept close to Spanish rates after a transition period.
- Cross-border travelers can initially claim refunds on qualifying non-commercial purchases, but these exemptions will end once Gibraltar’s standard TT reaches the required minimum.
Source: sede.agenciatributaria.gob.es
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
