The UK and the European Union jointly published, on 26 February, the draft legal text of the UK-EU treaty to govern Gibraltar’s post-Brexit relationship with the EU. Now awaiting ratification by the respective parliaments, the expected implementation date is 10 April 2026 when the EU’s new Electronic Entry/Exit System (EES) is scheduled to go into fully operation.

The EU-UK Agreement in respect of Gibraltar will complete the legal framework of the relations between the EU and the UK. Gibraltar was not included in the scope of the EU-UK Trade & Cooperation Agreement (UK-EU TCA), which was signed in 2020 and has been in force since May 2021.

The main objective of the EU-UK Agreement in respect of Gibraltar is to remove all physical barriers on persons and goods circulating between Spain and Gibraltar, while fully safeguarding Gibraltar’s sovereignty, the EU’s Schengen area, Single Market and Customs Union, and the autonomy of key British military facilities.

The government of Gibraltar formed an integral part of the UK’s negotiating team at every stage of the negotiations and has given its full support to the Agreement.

There is no direct application of EU law to Gibraltar through the Agreement or enforcement role for the Court of Justice of the European Union in Gibraltar. There are, however, provisions confirming how Gibraltar’s domestic legal system will incorporate EU law where alignment is required and confirms it will be enforced by Gibraltar’s own authorities and courts.

How will the customs arrangement between Gibraltar and the EU work?

The Agreement creates a customs union between the UK and the EU in respect of Gibraltar. Gibraltar is not joining the EU Customs Territory; it is entering into a bespoke arrangement that enables the free circulation of goods between Gibraltar and the EU without customs checks at the land frontier.

Gibraltar businesses will be able to access the EU Customs Union market. They will be able to sell to customers across the EU, and EU consumers will be able to buy from Gibraltar, without customs barriers. All goods sold on in Gibraltar must be EU compliant, subject to a three-month transition period, from 10 April, for goods already on the market in Gibraltar.

What is the new transaction tax and how will it apply?

Gibraltar’s current import duty regime will be replaced by a new Transaction Tax (TT), which will be applied initially at a transitional standard rate of 15%. This rate will be increased to 16% for year two and for year three will be aligned to the lowest standard rate of VAT being applied in the EU, which is currently 17%.

The TT will be levied at the point of importation or manufacture, or when goods are brought out of bond, rather than applied at the point of sale. The tax rate will be applied to the customs value of the goods. All revenue from the TT and excise duty will be charged in Gibraltar.

A reduced rate of 5% and a super reduced rate of 0% will apply to certain goods as listed in Annex III of the EU VAT Directive. The choice will be determined by that list. Bunkering fuel, ship supplies and goods that are not to be put up for sale in Gibraltar will be exempt from the TT and from excise duties.

EU minimum excise rates will apply to tobacco products and alcoholic drinks. By 10 April 2029, excise duties for fuel, alcohol and tobacco in Gibraltar are to be within 6% of the equivalent Spanish excise rates.

If goods are imported from the UK that do not meet the UK-origin rules contained in the UK-EU Trade & Cooperation Agreement, EU Common External Tariff rates will be applied. The TT would also be applied if the goods are to be placed on the market in Gibraltar.

Gibraltar businesses purchasing wholesale goods from suppliers in the EU for sale in Gibraltar should not pay VAT but will pay the TT on importation, or if applicable, when the goods leave a bonded warehouse in Gibraltar. Individuals in Gibraltar purchasing goods in the EU will pay VAT and will not be able to reclaim this. However, they will not pay the TT in Gibraltar on those goods.

How will movement between Gibraltar and Spain change?

The Agreement establishes a new system for the movement of persons, designed to remove all routine immigration checks and physical barriers at the land border while maintaining stability and security across Gibraltar and the Schengen Area.

Gibraltar will remain outside both Schengen and the EU, but Schengen border rules will apply at its external border under a tailored arrangement between the UK and EU. The Agreement provides that all necessary immigration checks will take place at Gibraltar’s airport rather than at the land border.

Gibraltar residents can stay in any Schengen EU member state for 90 days in any 180 without requiring a visa. EU citizens and third country EU residents can stay in Gibraltar for 90 days in any 180 without requiring a visa. Visas may be required for anyone carrying out a paid activity, but exemptions include business travel, sportspersons and artists, journalists and intra-corporate trainees.

What are the new rules for residence and visas?

Gibraltar residence will be evidenced by an ID card or residence permit. Gibraltar residents are exempt from passport control and both the Entry/Exit System (EES) and the obligation to register under the European Travel Information & Authorisation System (ETIAS). Gibraltar residents also have the right to transit through Schengen EU Member States to return to Gibraltar unless specifically excluded.

Under Article 45, a legal right to reside in Gibraltar will be subject to a person holding a valid identity card or residence permit issued in Gibraltar by the UK competent authorities on the condition of the person having been resident in Gibraltar for a continuous period of at least ten years immediately prior to the date of application for the card or being able to demonstrate a ‘genuine connection’ with Gibraltar. A ‘genuine connection’ is defined as being “able to demonstrate actual and regular physical presence in Gibraltar over an appropriate period of time or on the basis of other objective and verifiable criteria”.

Under Article 45 (6) these conditions will not be met “on the basis of predetermined investments having been made in Gibraltar’s economy or real estate; or as a result of any predetermined financial payments having been made to the Gibraltar authorities.”

The issue or renewal of residence permits for foreign nationals seeking to reside in Gibraltar will remain, under Gibraltar law, exclusively a matter for the Gibraltar authorities subject to the conditions in Article 45. However, the grant of residence permits will be subject to consultation with the Schengen authorities in respect of issues of public health, public security or public policy. This is to ensure that residence permits that will allow access to the Schengen area are granted in line with key provisions of EU law.

Nationals of third countries required to be in possession of a short stay visa to enter and stay in the EU will also be required to be in possession of a visa to enter and stay in Gibraltar. Nationals of third countries exempt from the requirement to be in possession of a short stay visa to enter and stay in the EU will not be required to be in possession of a visa to enter and stay in Gibraltar.

What rights apply to cross-border workers?

The Agreement defines the rights of cross-border workers, who live in Spain and work in Gibraltar or vice versa, to provide a secure framework for employment, supporting the integrated labour market between Gibraltar and the surrounding region. It provides mechanisms for social security coordination so that contributions, entitlements and benefits can be administered without disruption.

Under Article 291, frontier workers are defined as either EU citizens legally residing in the Kingdom of Spain or UK nationals legally residing in Gibraltar who pursue an economic activity as an employed person (or as a self-employed person under the respective UK and Spanish laws) either in Gibraltar or in Spain and who return at least once a week to Spain or to Gibraltar, respectively.

Frontier workers’ rights are also extended to their family members – spouses, registered partners, dependant children under 21, and dependant direct relatives – provided they also legally reside in Spain or Gibraltar respectively.

How will law enforcement cooperation operate?

The Agreement includes a law enforcement and judicial co-operation framework, modelled on the UK–EU TCA. It provides for reciprocal intelligence sharing, operational cooperation between the Royal Gibraltar Police and Spanish law enforcement, and joint protocols for cross-border security.

Gibraltar officials will always accompany Spanish officials in any joint operation on Gibraltarian soil. The Agreement also sets out the conditions for arrest warrants and extraditions as well as for freezing and confiscation orders, and the sharing of banking information if someone is suspected of criminality.

What does regulatory alignment mean for Gibraltar?

The treaty includes a ‘level playing field’ chapter, based on the UK-EU TCA but going further in certain areas. Under this framework, Gibraltar commits to maintain equivalence on labour standards, tax transparency, anti-money laundering, environmental protection, climate commitments and state aid control.

How are aviation and maritime arrangements affected?

In addition, the Agreement contains an aviation chapter that will provide for ‘enhanced’ use of Gibraltar airport by flights between Gibraltar and EU destinations, which have previously been restricted. Only EU carriers or those authorised by the EU will be able to fly these routes. Only UK carriers or those authorised by the UK will be able to fly from Gibraltar to the UK.

A joint venture company will be established between Gibraltar and Spain to select and supervise an airport manager, which will ensure Gibraltar’s agreement for any changes. Gibraltar will incorporate a certain EU civil aviation rule into its domestic regime. The British military base at the airfield is not in scope of the Agreement.

There are further provisions covering maritime and road transport services between Gibraltar and the EU. Notably, there will be no cruise liners calling directly into Gibraltar from any third country other than the UK and the Gibraltar-Morocco ferry will cease operations.

An exemption from visa requirements under EU law will apply to civilian sea crew members when they land to board a ship or go ashore to transit to another country, and who hold a seafarer’s identity document issued in accordance with the relevant international conventions.

How will the agreement be governed and implemented?

Finally, the Agreement creates governance structures to manage and oversee cooperation. It establishes a Cooperation Council, with both EU and UK representatives, to supervise and facilitate the application and implementation of the agreement in respect of Gibraltar. It will be co-chaired by a member of the European Commission and a UK government minister and will be supported by three Specialised Committees covering the circulation of persons, the economy and trade, and aviation.

The post EU–UK Gibraltar Treaty Draft Published: Key Provisions and Implications appeared first on The Sovereign Group.

The Gibraltar government confirmed, in a briefing to the Brexit Transition Advisory Group (BTAG) on 29 January, that the expected date for the entry into force of the UK-EU treaty to govern Gibraltar’s post-Brexit relationship with the EU is 10 April 2026, a significant advancement on previously indicated timelines for the treaty’s application.

The European Commission had previously announced on 12 December that negotiators from the EU, the UK, Gibraltar and Spain had successfully completed work on the legal text of the new treaty. Political agreement on the key elements was reached last June after almost four years of negotiations.

“The text is currently undergoing legal review by the EU and the UK before we can proceed with our respective internal procedures leading to the signature and conclusion of the future Agreement,” said a Commission spokesperson.

“The main objective of the future Agreement is to secure the future prosperity of the whole region. This will be done by removing all physical barriers to the movement of persons and goods between Spain and Gibraltar, while preserving the Schengen area, the EU Single Market and Customs Union. This will bring confidence and legal certainty to the lives and well-being of the people of the whole region by promoting shared prosperity.”

All parties to the treaty are now working towards the 10 April target date for implementing the treaty because this coincides with the launch of the EU’s new Electronic Entry System (EES) and will therefore eliminate the risk of disruption at the Gibraltar frontier.

During the briefing, the Gibraltar government outlined key elements of the treaty, which comprises over 330 articles and, including annexes and protocols, runs to almost 700 pages. A substantial portion of the text relates to goods, customs procedures and indirect taxation.

At its core, the treaty establishes a customs union between Gibraltar and the EU, removing customs duties on goods moving between the two. Provisions mirroring standard EU rules on the free movement of goods, customs processes and the prevention of unfair trading practices will apply.

Separate regimes are provided for the import and export of EU goods and non-EU goods, with detailed provisions set out in annexes. Indirect taxation measures cover VAT and excise duties, alongside the creation of an independent body to monitor market competitiveness.

Under the treaty, EU standards will become the norm for goods placed on the market in Gibraltar, but the government confirmed that transitional arrangements will apply from the date of entry into force to cover goods already on sale in Gibraltar or in transit to Gibraltar before 10 April.

A standard rate of Transaction Tax of 15% will apply upon the entry into force of the treaty. Subject to assessments to be made by the independent body, this will increase to a level equivalent to the lowest standard VAT rate applied by any EU Member State, which is currently 17%.

Reduced and zero rates of transaction tax will apply to a range of essential goods, mirroring the EU VAT framework. Excise duties on tobacco, alcohol and fuel will also move towards EU minimum levels during a phased implementation.

The treaty text will soon be circulated by the European Commission to the member states and publication is expected to follow within a period of weeks. Once the legal review is complete, the agreement can proceed to ratification.

It is understood that, as an EU agreement, ratification will only be required in the European Parliament rather than the national parliaments of each member state. For the UK, the ratification process will start with a motion in the Gibraltar parliament calling on the UK to ratify the treaty, after which it will have to be approved by the UK parliament.

The Gibraltar government, which has already approved the text for ratification, said it welcomed the “positive conclusion” of the negotiation on the treaty text. “We remain committed to transparency: the final treaty will be made public and subject to the full scrutiny of the Gibraltar, UK and EU parliaments as part of the process of ratification,” said a spokesperson.

“This agreement was negotiated with the EU by the Gibraltar government alongside the UK government and promises to be a good deal for Gibraltar after many years of uncertainty,” said Alex Powell, Managing Director of Sovereign Trust (Gibraltar). “The forthcoming publication of the final treaty text will allow businesses and residents alike to assess the detail. We will continue to keep clients informed as the ratification process advances.”

The post Gibraltar’s Post-Brexit EU Treaty Set for Implementation on 10 April 2026 appeared first on The Sovereign Group.

When you are responsible for your team’s wellbeing, the stakes are high. The right group medical insurance can protect your people, reduce absence, and strengthen retention. Yet the market can be complex and time-consuming to navigate. That is where appointing a broker makes a measurable difference.

Why appoint a broker for group medical cover?
At Sovereign Insurance Services, we take care of the hard work for you. We compare the market, design tailored benefits, build and negotiate quotes, and then provide ongoing administration and claims support throughout the year. Our advice is independent and jargon-free, and our private medical insurance services are completely free of charge to employers. There are no fees for placement, reviews, recommendations, claims, or administration.

The measurable business impact
Investing in group medical cover is not just about peace of mind; it delivers tangible business benefits. Across Europe, companies that provide health insurance see clear improvements in productivity and attendance. In Central Europe, employers offering group health cover reported a 25% reduction in absenteeism and a 10% to 20% increase in productivity. In Ireland, similar schemes have been linked to almost 30% lower staff turnover and employees who are 25% more productive.

The UK tells a similar story. Private hospital admissions reached a record high in 2024, with insured treatments accounting for more than 70% of all private admissions. Around 80% of these policies are funded by employers, reflecting the growing recognition that faster access to care helps maintain productivity and reduce delays. Organisations that invest in wellbeing report significant improvements, including reduced absence, higher engagement, and better overall performance.

The evidence from the United States reinforces the case. A national study found that employer-sponsored health coverage delivers an average return on investment of 47%, meaning £1 spent generates £1.47 in value. That figure is expected to rise to 52% by 2026. MetLife’s research goes further, estimating that every £1 invested in employee health returns £2.30 in value, thanks to healthier teams who are more productive and take fewer sick days.

The conclusion is clear: investing in group medical cover pays back through fewer absences, faster recovery, and improved retention, while helping you stand out in a competitive job market.

What Sovereign does for you (at no cost)

• Unbiased market search and negotiation: We are not tied to any insurer; we source and negotiate the package that genuinely fits your workforce and budget.
• Clear comparisons and recommendations: Full benefit and cost comparisons, explained in plain English so you know exactly how your people will use the cover.
• Ongoing administration and claims support: We manage onboarding, membership changes, renewals, and support employees with claims to minimise disruption.
• Optimisation over time: Insights on utilisation and claims to fine-tune cover where it matters most for absence and productivity.

Make group medical cover work harder for your business without adding to your workload.

The post Discover the Benefits of Group Medical Insurance – Expert Help at No Cost appeared first on The Sovereign Group.

Setting up a workplace pension under Gibraltar’s Private Sector Pensions Act can feel complex, but it does not need to be. Here are the five most common questions small businesses ask and straightforward answers to help you navigate your obligations.

1. Do I still need to offer a workplace pension if some employees already have personal pensions?
Yes. Even if your staff contribute to personal pension plans, that does not meet your legal obligations under the Private Sector Pensions Act. Employers must offer a workplace scheme to eligible employees. The scheme must be an occupational pension scheme registered and authorised by the GFSC.

If an existing scheme already meets the minimum requirements under the Act, you may not need to change it, but this requires careful review and registration with the Commissioner.

Takeaway: Personal pensions do not exempt you from providing a compliant workplace pension. Check whether your current arrangements satisfy the law and how you can integrate or supplement them efficiently.

2. What if our business has high staff turnover – do I need to enrol every employee?
Yes, if they meet the eligibility criteria set out in the Act. An eligible employee is someone who:

• Is over the age of 15
• Has worked for you for one year or more
• Has gross earnings of at least £10,000 a year

This means part-time, zero-hours or short-term workers may need to be enrolled if they meet these rules.

High turnover can create concerns about paying into pensions for staff who leave soon after enrolment. By structuring your scheme carefully, you can manage risk and ensure contributions benefit employees who stay long-term.

Takeaway: High turnover does not exempt you. Smart vesting rules and good onboarding processes can limit unnecessary costs while keeping you compliant.

3. We don’t have an HR department – how much extra administration will this create?
This is a common concern, but the right provider can make administration simple.

At Sovereign, for example:

• Our Employer Self-Service (ESS) portal allows you to upload joiner data and monthly contributions easily
• Our Member Self-Service (MSS) portal gives employees secure access to view balances, update details, check contributions and switch investments
• We integrate with EasyPay, Gibraltar’s leading payroll software, so contribution data flows seamlessly from payroll to pension

Our Gibraltar-based team can also provide training and support to make the process straightforward.

Takeaway: With the right provider and technology, pension administration becomes a simple monthly payroll task, not a full-time HR burden.

4. How much will it cost my business?
There are three main cost areas:

1. Contributions
   Employers and employees must each contribute a minimum of 2% of gross earnings. Employers can choose to contribute more to enhance their benefits package.
2. Implementation fee
   A one-off setup fee covers establishing the scheme, onboarding members and ensuring compliance.
3. Ongoing administration fees
   Annual fees cover scheme administration, Trustee obligations, record-keeping and reporting. Statutory fees payable to the GFSC or for financial statements are paid by the employer as a disbursement.

At Sovereign, we offer:

• • A fixed implementation fee
  • Ongoing administration fees based on Assets Under Administration, deducted annually from member accounts
  • Three tiers of workplace pensions to suit different needs:
    • Tailored Plan: Fully customisable with broader features
    • Core Plan: Standardised format with shared external costs
    • Foundation Plan: Streamlined, compliant and cost-effective

Takeaway: Costs are predictable and easy to plan for. The right scheme depends on your business objectives and level of flexibility required.

5. What happens if I fail to comply or make a mistake?
Non-compliance or mismanagement can create risk, but there are clear steps to reduce it:

• The GFSC acts as Pensions Commissioner and oversees compliance
• You must notify the Commissioner when you set up your scheme and report changes within 30 days
• Common mistakes include missing deadlines or failing to enrol eligible employees

Working with a provider like Sovereign means you benefit from tested systems, monthly reporting and local support, reducing administrative risk.

Takeaway: While there is regulatory risk, proactive setup and the right partner help you meet your obligations confidently.

Final Thoughts
For small businesses in Gibraltar, implementing a workplace pension is a legal requirement. But it is also an opportunity to strengthen your employee value proposition, improve retention and show you are invested in your team’s future.

As part of Sovereign’s support for Gibraltar businesses, Gibraltar Federationf of Small Businesses (GFSB) members receive a 30% discount on setup costs. Speak to us or the GFSB team to find out more.

If you have questions or would like help reviewing your current pension arrangements, our Gibraltar team is ready to assist. We can guide you through setup and keep you compliant with minimal fuss.

The post Top 5 Questions Small Businesses Ask About Gibraltar Workplace Pensions appeared first on The Sovereign Group.

Gibraltar recently released its 2025 National Risk Assessment (NRA), providing a clear view of the government’s approach to managing financial crime risks, especially in the key areas of money laundering, terrorist financing, proliferation financing and sanctions circumvention, in line with the standards of the global watchdog, the Financial Action Task force (FATF).

This comprehensive assessment, the first since 2020, is an important milestone for Gibraltar as it continues to balance innovation with regulatory strength. Following removal from the FATF Grey List in 2024, the Gibraltar government is now preparing for the next evaluation of its anti- money laundering (ML) and terrorist financing (TF) framework and practice by MONEYVAL, the EU anti-money laundering body, in 2027.

For clients and professionals working with corporate structures, funds and trusts in Gibraltar, the NRA provides an invaluable insight into how the jurisdiction continues to evolve and where opportunities lie.

From tradition to transformation

Gibraltar’s financial sector was built on traditional products and services, notably corporate structuring and private banking. But as the 2025 NRA highlights, over the last 20 years these have increasingly been replaced by digital innovations such as online gaming, e-money products, and most recently, Distributed Ledger Technology and Virtual Asset Service Providers (DLT/VASPs).

This transformation demonstrates Gibraltar’s ability to adapt and stay relevant in a rapidly changing global financial environment, while maintaining strong regulatory oversight. Since Gibraltar’s removal from the FATF grey list, the government has continued to strengthen law enforcement and inter-agency coordination to combat complex cross-border financial crime.

Given its small size, the most complex cases involve cross-border elements and require close cooperation with overseas counterparts. The NRA highlights Gibraltar’s priority to ensure enhanced inter-agency coordination and to ensure that suspicious activity is properly investigated and supported by strong evidence for prosecution.

The NRA also draws attention to the announcement made in June 2025 regarding a political agreement between the UK and the EU for the conclusion of a treaty concerning Gibraltar’s future relationship with the EU, including with the Schengen area. It notes that this treaty is expected to bring further regulatory and operational changes in border control, data sharing, law enforcement cooperation and the movement of persons. This, it says, may have consequential impacts on Gibraltar’s exposure to ML and TF risks, increasing its broader international obligations.

Distributed Ledger Technology and Virtual Asset Service Providers

The inclusion of e-money institutions and DLT providers in the latest NRA underscores how significant these industries have become to Gibraltar’s financial landscape. In 2018, Gibraltar was among the first jurisdictions worldwide to regulate Distributed Ledger Technology (DLT) by implementing a regulatory framework, requiring businesses using DLT for the transmission or storage of value to be authorised by the Gibraltar Financial Services Commission (GFSC)

In 2021, Gibraltar strengthened its position further by introducing the Virtual Asset Service Provider (VASP) registration regime, ensuring alignment with international standards and expanding regulatory oversight. Since then, the sector has continued to grow under the supervision of the GFSC – authorised DLT providers and VASPs now hold more than £3.75 billion in client assets.

This growth reflects investor confidence and reinforces Gibraltar’s reputation as a global leader in regulated digital finance, offering a range of virtual asset (VA) services from exchanges and custodial wallets to token sales, over-the-counter (OTC) exchange services, and leveraged trading services.

Remote gambling and insurance

Gibraltar is an international hub for remote gambling operators with a small and closely regulated gambling sector consisting mainly of remote gambling operators in the Business to Customer (B2C) and Business to Business (B2B) game supply sectors. The number of gambling operators has remained steady with B2C operators increasing from 17 in 2019 to 21 in 2024, which represent about eight million active customers at any given time.

The insurance sector in Gibraltar consists primarily of general insurance companies and is one of the largest contributors to the local economy. The sector currently comprises 37 general insurers, 23 general insurance intermediaries, three life assurers and 13 life assurance intermediaries.

According to the NRA report, most of these firms underwrite risks outside of Gibraltar. Gibraltar’s insurance industry is estimated to underwrite approximately 30% of all UK car insurance policies. In contrast, the provision of life assurance products is relatively small and is undertaken by only a handful of local insurers who issue policies in lower risk jurisdictions.

As of 31 December 2024, there were 18 insurance companies offering life insurance and other investment linked insurance, generating total premium income of £38 million from 35,369 clients. Once one of Gibraltar’s fastest growing sectors, the insurance industry has now matured into a stable and well-regulated pillar of its financial ecosystem.

Strengthening cross-border oversight

Gibraltar is uniquely positioned as a gateway between Europe and Africa, but the NRA report highlights Gibraltar’s geographic exposure to Spain and Morocco, which are both assessed as higher-risk jurisdictions for ML and TF. This, it said, underscores the importance of cross-border risk management and firms must ensure robust due diligence and compliance when structuring international transactions.

The UK, by contrast, presents a more moderate profile, with ‘medium’ ML and low TF risks. The NRA also notes that fraud, cyber-enabled fraud, and the laundering of criminal proceeds remain areas requiring vigilance. These findings reflect not only the challenges faced by Gibraltar but its commitment to applying proportionate safeguards.

Raising the bar for Fund structures

Private and alternative investment funds were a key focus of the NRA. The assessment emphasises the requirement for local fund administrators and custodians, reinforcing Gibraltar’s commitment to substance, governance and investor protection. This strengthens Gibraltar’s reputation as a jurisdiction where fund oversight is taken seriously, which is particularly important in the fast-growing area of crypto and alternative investment funds.

Commitment to international standards

Gibraltar’s successful removal from the FATF grey list in 2024 marked a turning point, and the 2025 NRA builds on that achievement. The report highlights the jurisdiction’s ongoing alignment with FATF standards, with particular emphasis on transparency of beneficial ownership and the effective monitoring of complex cross-border structures. For clients, this provides confidence that Gibraltar remains firmly positioned as a trusted and compliant international financial centre.

While the NRA identifies areas of potential vulnerability, it also highlights Gibraltar’s strengths:

• Digital assets – by recognising DLT and e-money providers within the risk framework, Gibraltar reinforces its position as a credible hub for digital finance.
• Cross-border advantage – Gibraltar’s strategic location enables businesses to leverage opportunities between Europe, Africa and global markets, underpinned by strong compliance.
• Investor confidence – transparent, rigorous risk assessments enhance Gibraltar’s appeal to institutional and high-net-worth investors who value both innovation and security.

“The 2025 NRA is more than a regulatory report,” said Karl Cervan of Sovereign Gibraltar’s Business Development Team, “it is a clear signal that Gibraltar is raising standards while continuing to innovate. By addressing emerging risks in areas such as digital assets and cross-border activity, Gibraltar demonstrates that robust regulation and business opportunity can go hand in hand.

“At Sovereign Gibraltar, we understand that adapting to these shifts requires both strategic insight and practical structuring solutions. Our team is here to help clients navigate this changing environment and ensure that their corporate, trust and fund structures remain compliant while taking full advantage of Gibraltar’s evolving strengths.”

The post Gibraltar’s Strengthening Confidence as a Dynamic International Financial Centre appeared first on The Sovereign Group.

To explore these perspectives, we spoke with the Managing Directors of our three pension offices, asking them the same set of questions.

Sean Gillease (SG) Managing Director of Sovereign Pension Services (CI) Ltd	Cristina Cassar Difesa (CCD) Managing Director of Sovereign Pension Services (Malta) Ltd	Darren Whitley (DW) Managing Director of Sovereign Pension Services (Gibraltar) Ltd

Q1. What does the pensions landscape look like in your jurisdiction right now, and how is Sovereign positioned within it?

SG (Guernsey): The pension landscape in Guernsey is going through a period of rapid evolution and growth. There has always been a large number of specialist providers providing services to individual and corporate clients, based both locally and internationally. This continues but following the introduction of Secondary Pensions (auto-enrolment) in 2024 there has been a significant increase in local pension provision, which will help to ensure better outcomes for residents in the future and which has created significant demand in the local market. Sovereign is very well positioned in the Guernsey pension market, providing solutions for personal and corporate clients based in Guernsey and internationally. Sovereign was recently selected by the Government of Guernsey to manage Your Island Pension (YIP), which is a default auto-enrolment solution and was launched in January 2024. Sovereign has also seen increased interest in international retirement and savings plans for large international employers.

CCD (Malta): Until now, the pension market in Malta has primarily revolved around QROPS for UK expats. However, some very exciting things are happening locally as auto-enrolment is finally being introduced. Sovereign is exceptionally well positioned in this landscape, not just because we are one of Malta’ most established pension provider but also because our international experience enables us to partner with employers navigating this new world of auto-enrolment. Our solutions are robust, tried and tested but also tailored which is exactly what the market needs during this critical time.

DW (Gibraltar): Whilst a long standing QROPS jurisdiction Gibraltar has now introduced legislation around compulsory occupational pensions meaning the landscape mirrors that of the U.K. The Private Sector pensions act requirements commenced in 2021 and continues with a phased approach until 2027. Sovereign is now the largest provider of company pensions on the rock and is well positioned to take on all company sizes with tailored solutions to accommodate the act requirements.

Q2. What’s the biggest difference between personal and occupational pensions in your market? Which area is seeing the most growth?

SG (Guernsey): In the employer sponsored pension area (occupational pensions) the main area of focus for us has been the local auto-enrolment initiative, with YIP particularly. In this area we are dealing with business owners, HR professionals etc and their primary objective is to provide a valuable benefit to their employees. Growth in this area has been significant, driven by the compulsory secondary pensions law.

In the personal pension area, we are dealing with individual clients who want to make additional saving for their retirement, or who want to transfer an existing pension to us. This area can be complex and technical and there are arguably fewer providers able to assist in this specialist area than there would have been previously. Sovereign is well placed to assist having been providing these types of scheme for a significant number of years and with in-house technical expertise, including for pension transfer type cases.

CCD (Malta): The key difference is that to date, the majority of demand has come from QROPS and serving the retirement planning needs of UK expatriates. However, the introduction of auto-enrolment is a gamechanger and we expect this will drive significant growth in occupational pensions in the years ahead. Thanks to our international experience, Sovereign is one of the few providers with genuine occupational pension expertise, making us uniquely positioned to help employers build solid, compliant occupational schemes as this new market emerges.

DW (Gibraltar): Occupational pensions in Gibraltar are contributed to by the employer and employee whereas Personal Pensions are solely contributed by the individual. With the new act in force Occupational Pensions are growing at a rapid rate. Within two years from now every employee in Gibraltar will have had to offer one to their workforce.

Q3. What’s one misconception people often have about pensions in your jurisdiction, and how do you address it?

SG (Guernsey): There are many misconceptions. Many people believe that a pension is only worth having if you can afford to put 000’s of £ per month into it. The truth is for those with a decent amount of time to retirement even a small amount added on a consistent basis over a period of time will be worthwhile. I also think many people are nervous about pensions – there are lots of reasons why this view exists but that is one thing that we work hard to address. Trustee responsibility, member value and clear and concise communications are all ways we try to address that issue.

CCD (Malta): One common misconception in Malta is that pensions are only relevant at retirement age, or that the state pension alone will provide sufficient income. In reality, Malta’s state pension is relatively modest and may not cover the standard of living many people expect. Because the private pensions market here is still developing, part of our role is to raise awareness that additional retirement saving is not just optional, but essential for long-term financial security. By highlighting the potential tax advantages, employer benefits, and the flexibility of well-structured pension arrangements, we aim to shift the perception of pensions from a last-minute concern to an important part of future planning.

DW (Gibraltar): That they don’t need one! People often think the state pension will suffice to retire on but as with most jurisdictions across the world that is never the case. We often highlight the reality of what will be available and it works out very modest.

Q4. How does being part of a wider international group like Sovereign enhance what you’re able to offer clients locally?

SG (Guernsey): Being part of a wider group bring various benefits. In previous scenarios we’ve had clients who have relocated between jurisdictions that we have offices and this has allowed us to assist across both sites. In some cases we also have non-Guernsey resident clients who need support or assistance and given we have offices in many of the countries are clients are resident, such as the UAE, South Africa and Singapore we can arrange for them to meet with someone locally. It also ensures we are aware of ongoing developments, issues and trends across the globe as that can often have an impact on our clients and the services we provide.

CCD (Malta): Sovereign’s international footprint gives us a real competitive edge in Malta. We benefit from shared expertise and direct collaboration with colleagues in other jurisdictions. This means we can offer our clients insights and solutions informed by global best practice, not just local market experience. For a jurisdiction like Malta, where the pensions industry is still small and niche, this support makes a real difference. It helps us avoid common pitfalls and shortens the learning curve for clients and employers who are new to pensions altogether. Ultimately, the backing and experience of the wider Sovereign Group enable us to operate at a higher level of maturity and sophistication.

DW (Gibraltar): It enhances our offerings massively. We employee tax advisors, accountants and lawyers across the group so there is a depth of experience beyond that of our retirement planning field to pull on when needed. Occupational Pensions are not unique to us here in our Gibraltar office either. In Guernsey Sovereign are the provider of choice having won the contract for Guernsey Your Island Pension’s. Our experienced across both offices is often shared to good effect so that is a strength and depth that stands us apart from other providers.

Q5. If you could give one piece of pensions advice to a client starting their retirement planning today, what would it be?

SG ( Guernsey): Get started. Even if the amounts you start off with are small – time is your biggest asset and so those small amounts now can make a huge difference in the future. Also make use of any employer support you can get. If your employer offers a scheme and will contribute into it for you – do not leave the scheme – you are essentially giving away free money and you’ll kick yourself down the line.

CCD (Malta): My advice would be simple: think carefully about your future self,  the person you’re planning for deserves security, comfort, and peace of mind. Just as important as starting early is being selective about who you trust to guide you. The wrong partner could put your plans and your future at risk. The right one will help you navigate uncertainty, stay compliant, and protect what you’re building. At Sovereign, we take that responsibility seriously and are committed to supporting clients throughout their retirement journey.

DW (Gibraltar): Don’t wait! Save a little and often and you won’t regret it in retirement.

To speak to a pension expert from one of our three pension offices please use the contact details below:

Guernsey Office:
Sovereign Pension Services (CI) Ltd
T: +44 (0) 1481 811000
E: guernseypensions@sovereigngroup.com

Malta Office:
Sovereign Pension Services (Malta) Ltd
T: +356 27 888 132
E: maltapensions@SovereignGroup.com

Gibraltar Office:
Sovereign Pension Services (Gibraltar) Ltd
T: +350 200 76173
E: gibraltarpensions@SovereignGroup.com

The post Expert Views: How Pension Markets Are Evolving Across Guernsey, Malta and Gibraltar appeared first on The Sovereign Group.

In an increasingly volatile world, wealthy international families are prioritising asset protection, succession planning and cross-border flexibility more than ever. One of the most robust tools for achieving these goals remains the trust — and Gibraltar is one of the world’s leading offshore jurisdictions in which to establish a trust.

What benefits do Trusts offer?

Planning for wealthy international families typically involves assets, relationships and structures situated in multiple jurisdictions from which complex tax issues and conflicts of law inevitably arise. When electing how to structure their wealth it is therefore essential to do so in a manner that provides security and certainty.

Trusts have long been used by high-net-worth individuals and their families to:

• Protect wealth from political or economic instability.
• Plan generational transfers in a tax-efficient manner.
• Safeguard assets during family disputes or divorces.
• Maintain confidentiality and control across borders.

Despite evolving regulations, trusts remain highly relevant, especially when based in a stable, tax neutral jurisdiction with an effective legal framework. Trusts in Gibraltar are often used in tandem with other vehicles, such as Foundations, Companies or Pension structures, to provide holistic wealth solutions.

What sets Gibraltar apart?

• Common Law jurisdiction – Gibraltar combines an English common law tradition with a forward-looking regulatory environment, making it uniquely suited to serve the needs of international families.
• Strong legal foundation – the Gibraltar Trustee Act, the main trusts legislation in Gibraltar with subsequent amendments, is largely based on the English Trustee Act, making it familiar and reliable for lawyers and clients globally.
• Tax-neutral environment – a properly structured Gibraltar trust can be free from local taxation on income and gains, if the settlor is non-resident, the trust holds no Gibraltar-source income, and beneficiaries are not Gibraltar residents.
• Favourable tax regime – most passive investment income is not taxable in Gibraltar, including bank interest, dividends from companies listed on a recognised stock exchange or dividends paid to non-residents. There is no capital gains tax in Gibraltar and no inheritance, wealth or gift tax.
• Asset protection ¬– the transfer of assets to a trust will qualify for statutory protection if the trust has been properly established and the transfer of assets to the trust is properly registered with the Gibraltar Financial Services Commission (GFSC).
• Enhanced confidentiality ¬– only charitable trusts need to be registered in Gibraltar. All other trusts are private and there is no requirement to register a Gibraltar trust or to file a copy of the trust deed with any government body, providing complete confidentiality for the settlor, the beneficiaries and the trust assets.
• Effective regulation and high professional standards – unlike many offshore jurisdictions, trust service providers in Gibraltar, such as Sovereign Trust (Gibraltar), are regulated by the GFSC, which stipulates requirements as to minimum capitalisation, professional competence and indemnity insurance. This provides greater confidence, particularly for families with complex governance needs.
• EU and UK connectivity – while Gibraltar is outside the EU, it maintains strong commercial and legal ties with both the UK and the broader European market.

How can Sovereign help?

Sovereign opened its first office in Gibraltar in 1987 and has since grown into one of the largest independent corporate and trust service providers with a presence in over 20 jurisdictions around the world. We currently manage over 20,000 structures for a wide variety of clients – companies, entrepreneurs, private investors or high net worth individuals (HNWIs) and their families – and have assets under administration in excess of USD25 billion.

With nearly four decades of operational experience across multiple jurisdictions, Sovereign Trust (Gibraltar) offers:

• Trust creation, management and administration services for all types of trusts, including asset protection trusts.
• Cross-border tax and legal structuring.
• Ongoing compliance and reporting.

We work closely with clients, lawyers and accountants to ensure that each trust is aligned with the family’s long-term objectives — whether that’s preserving a family business, funding philanthropy or passing wealth to the next generation.

Global families need more than just structures: they need jurisdictions that offer security, professionalism and flexibility. Gibraltar ticks all these boxes and can offers a global solution for wealthy international individuals and families to future-proof their legacies.

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The UK, the EU, Spain and Gibraltar jointly announced on 11 June that they had agreed the core aspects of a future formal treaty between the EU and the UK in respect of Gibraltar. It involves removing the need for border checks between Spain and Gibraltar while enabling EU/Spanish checks at other entry points into Gibraltar.

Gibraltar is a British Overseas Territory sitting at the entrance to the Mediterranean on the southern tip of the Iberian Peninsula. Its only land border is with Spain. Gibraltar left the EU along with the UK in January 2020, although Gibraltarians voted overwhelming to remain in the EU in the 2016 UK referendum on EU membership.

At Spain’s insistence, Gibraltar was not covered by the Trade and Cooperation Agreement (TCA), which sets out arrangements for the UK and EU’s post-Brexit relationship. Since October 2021, there have since been 19 formal negotiation rounds as well as other talks. The agreement on the EU-Gibraltar relationship is therefore “the last piece of the EU exit jigsaw”.

Since the Brexit vote, the Gibraltar government has stressed the importance of maintaining an open ‘fluid’ border between Gibraltar and Spain given the importance to Gibraltar’s economy of around 15,000 frontier workers who reside in Spain but work in Gibraltar, which represents over half of Gibraltar’s workforce. It has also emphasised the importance of access to the EU single market for key sectors of its economy, notably services.

Interim measures have been in place since the UK left the EU. Spain has allowed Gibraltar residents to continue to cross the border without the passport stamping normally required to enter the EU/Schengen area, and Gibraltar has reciprocated for Spanish residents coming into Gibraltar.

All sides stressed the importance of reaching an agreement before the EU implements its new entry/exit system (EES). This is an automated border system involving biometric checks, which Spain would have been obliged to implement at the border with Gibraltar in the absence of different arrangements. The new EES had been scheduled to begin in November 2024, but was postponed. A phased-in launch is now scheduled from October 2025.

The new agreement will remove all checks and controls on people and goods circulating between Spain and Gibraltar and establish a customs union between Gibraltar and the EU. There will be two sets of checks for people arriving at Gibraltar airport and seaport: the Gibraltar authorities will continue to carry out their own checks and the Spanish authorities will carry out Schengen area checks on behalf of the EU.

The Schengen area is an area without internal border checks on the movement of people, comprising all EU member states except Ireland and Cyprus, plus Iceland, Norway, Switzerland and Liechtenstein. Membership of Schengen also requires the adoption of a broader legal framework covering cross-border police and judicial cooperation with EU institutional oversight.

Gibraltar will not join the Schengen area. Immigration, policing and justice in Gibraltar will remain the responsibility of the Gibraltar authorities. However, the EU regards the Schengen checks at arrival points into Gibraltar as necessary to ensure that anyone entering Gibraltar and then crossing into Spain complies with rules on staying in the Schengen area.

This means that time spent by UK nationals who are not residents of Gibraltar in Gibraltar will be counted as part of the time-limited allowance for short stays in the Schengen area. Citizens of countries outside the EU or Schengen area, including the UK, can only spend 90 days in the Schengen area in any 180-day period.

The new arrangements will involve close cooperation between the border, law enforcement and customs authorities of Gibraltar, Spain and the EU. Other areas covered by the agreement include taxation, the rights of frontier workers, and ensuring a “level playing field” between Gibraltar and Spain and the EU on issues including state aid, labour rules, social security, anti-money laundering, transport and the environment.
In the area of goods, the agreement includes the principles underpinning the future customs union between the EU and Gibraltar, providing for strong cooperation between the respective customs authorities and removing checks on goods. There is also agreement on the principles of indirect taxation to be applied in Gibraltar, including tobacco.

UK Foreign Secretary David Lammy said the UK and the EU had agreed a clause “explicitly protecting” UK sovereignty over Gibraltar. The June 2025 agreement guarantees full operational autonomy for the UK’s military facilities in Gibraltar, including Gibraltar airport, which hosts the Royal Air Force base and is managed by the Ministry of Defence. There is also provision for direct flights to EU destinations from Gibraltar.

Gibraltar Chief Minister Fabian Picardo welcomed the agreement, stating that it would “bring legal certainty to the people of Gibraltar, its businesses and to those across the region who rely on stability at the frontier”.

The joint statement on the agreement said that the way was now clear for negotiating teams to finalise the full legal text. Although Spain and Gibraltar were fully involved in the negotiations, the formal agreement will be between the EU and the UK, which retains responsibility for Gibraltar’s external affairs. It will not come into force until it has been signed and ratified by the parties in line with their ‘internal procedures’.

Sovereign Trust (Gibraltar) Head of Business Development Ejaz Niazi said the agreement was a huge boost to investor confidence by providing long-term legal and regulatory certainty, easing the movement of people between Gibraltar and Spain, and offering the prospect of frictionless cross-border trade in goods and select services.

“The main objective of the future agreement is to secure the future prosperity of the whole region. By removing all checks and controls on people and goods circulating between Spain and Gibraltar, it will boost trade, cross-border employment and tourism,” said Niazi. “It will also strengthen Gibraltar’s status as a credible and well-regulated jurisdiction within Europe and will enhance the ability of Gibraltar-based financial services, gaming, insurance and fintech firms to serve EU clients.”

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The European Parliament approved, on 9 July, a proposal by the European Commission to remove both Gibraltar and the United Arab Emirates (UAE) from its list of high‑risk jurisdictions regarded as having strategic deficiencies in their national anti‑money laundering and countering the financing of terrorism (AML/CFT) regimes.

EU entities covered by the AML framework are required to apply enhanced vigilance in transactions involving listed countries. In addition to the reputational damage, a listing adds costs to transactions involving people or entities from listed countries.

The EU listing process shadows the work of the Financial Action Task Force (FATF), the international anti-money laundering watchdog, in particular its ‘grey list’ of jurisdictions subject to increased monitoring. The Commission is mandated to update the high‑risk list regularly, but its proposals require the assent of both the European Parliament and individual member states.

This is not the Commission’s first attempt to delist Gibraltar and the UAE. It proposed doing so in March 2024 after both jurisdictions had been delisted by the FATF, but the proposal was vetoed by the European Parliament. This meant that the EU high-risk list was out of line with the FATF grey list for over 18 months, causing confusion and legal uncertainty for entities that must apply anti-money laundering rules.

“EU operators have to comply with divergent lists which increase their compliance burden, adds additional costs and impacts their global competitiveness,” EU Commissioner for Financial Services Maria Luis Albuquerque told the Parliament. “The fact that countries listed by the FATF are still not listed by the EU exposes the EU’s financial system to vulnerabilities and can create loopholes that need to be addressed.”

Gibraltar was first identified by the FATF as a jurisdiction under increased monitoring in June 2022 and placed on the ‘grey list’, despite rating as ‘Compliant’ or ‘Largely Compliant’ with 39 of the 40 FATF Recommendations and rating as ‘Partially Compliant’ with only one.

The Gibraltar government made a high-level political commitment to work with the FATF and Moneyval, the permanent monitoring body of the Council of Europe, to further strengthen the effectiveness of its AML/CFT regime by May 2023. Its agreed FATF Action Plan consisted of only two recommended actions, the fewest of any previously grey-listed country or jurisdiction.

In October 2023, the FATF made the initial determination that Gibraltar had substantially completed its action plan and warranted an on-site assessment. Following this assessment, in February 2024 the FATF stated that Gibraltar had resolved its strategic deficiencies within the agreed timeframe and was no longer subject to increased monitoring. It was removed from the FATF grey list.

Sovereign Trust (Gibraltar) Head of Business Development Ejaz Niazi said this could be a game-changer. The 2024 FATF delisting confirmed that Gibraltar was in compliance with global AML standards, but the continued EU high‑risk listing meant that European financial institutions were still required to apply enhanced due diligence (EDD).

“Formal removal from the EU list of high‑risk jurisdictions will reduce the compliance costs and barriers for clients wishing to use Gibraltar and reassure global investors, banks and counterparties about Gibraltar’s regulatory integrity,” said Niazi.

“This will make it easier for Gibraltar-regulated firms to engage with EU banks, law firms and fund managers and for Sovereign offices around the world to confidently refer clients to Gibraltar structures with fewer compliance frictions. It strengthens Gibraltar’s case as a viable jurisdiction for wealth structuring, fund domiciliation and corporate services.”

The UAE was added to the grey list in March 2022 after it had made a high-level political commitment to work with the FATF and the Middle East & North Africa Financial Action Task Force (MENAFATF) to strengthen the effectiveness of its AML/CFT regime to address the deficiencies identified by the FATF in its 2020 Mutual Evaluation.

At its October 2023 plenary, the FATF made the initial determination that the UAE had substantially completed its Action Plan and therefore warranted an on-site assessment. Following this assessment, it concluded that the UAE had met the commitments in its Action Plan. It was removed from the FATF grey list in in February 2024.

The UAE government has continued to sustain implementation of AML/CFT reforms. Last August, it amended its AML/CFT laws by adding measures to assist with investigations, to impose sanctions in cases of non-compliance by financial institutions and to increase the number of prosecutions to combat money laundering.

Last September, it also set out a 2024-27 National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing, which has 11 goals focused on risk-based compliance, effectiveness and sustainability.

“The EU delisting is very good news for the UAE, which should be congratulated for taking strong and credible steps to ensure its removal,” said Simon Gordon, Managing Director of Sovereign Corporate Services Dubai.

“The UAE has continued to implement significant legislative and structural reforms in areas including financial crime compliance, whistleblowing and virtual assets regulation. It is reassuring that the government is continuing to prioritise AML/CTF governance in 2025, particularly in view of the next FATF assessment in 2026.”

The European Commission also removed Barbados, Jamaica, Panama, the Philippines, Senegal and Uganda from its list of high‑risk jurisdictions, while a further 10 third‑country jurisdictions were added to the list – Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela.

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ON 30 JUNE 2025, FABIAN PICARDO KC, DELIVERED HIS 14TH BUDGET SPEECH AS GIBRALTAR’S CHIEF MINISTER.

THIS WAS FOLLOWED UP ON 2ND JULY 2025 REGARDING TAXATION MATTERS, BY THE MINISTER FOR JUSTICE, TRADE AND INDUSTRY, NIGEL FEETHAM KC.

BACKDROP & PUBLIC FINANCES

• The treaty negotiated with the EU (announced on 11 June 2025 – not yet signed or ratified) brings huge opportunities.
• 2024/2025 surplus of £9.782m, three times more than forecast.
• 2024/2025 revenue £813m, a new revenue record.
• 2024/2025 £474m income tax (personal £262m and corporate £212m) receipts, £70m more than estimated (£10m personal, £60m corporate tax). A historic milestone. Striking 37% increase in corporate tax since prior year.
• 2024/2025 £100m import duty, £5m more than estimated.
• 2024/2025 £11.5m tourist site receipts, over £2m more than 2023/2024.
• 2024/2025 £1.6m from personalised number plates (692 plates).
• Cash reserves currently at £268m.
• Savings Bank reserve increased to £83m.
• Of the £66m overspend, £36m relates to Health Authority, Elderly Care and Care Agency.
• Estimate surplus for 2025/2026 £5.3m.
• Annual 2024/2025 forecast GDP £3.1bn. 6.5% anticipated increase.
• Annual GDP per capita £96k (US$132k) per person, second in the World rankings (below Luxembourg) and above Ireland, Switzerland and Singapore. Per capita in UK US$53k, Per capita in Spain US$35k.

TAX & FISCAL MEASURES

• No increase in personal or corporate tax rates.
• Social insurance cap increased by 5% on 1 July 2025, but social insurance rates remain unchanged.
• Creation of Business Transition Advisory Group announced. This will be chaired by Minister for Business, Gemma Arias Vasquez, to advise the Government on the implementation of the Transaction Tax (to replace import duties) and all the relevant business considerations arising from the new EU treaty. To report to the Government by end November 2025.
• Transaction Tax rate once applicable – 15% first year, 16% second year, 17% third year. Some goods subject to EU reduced rate of 5% (e.g. children’s clothes), super -reduced rate of 0% (e.g. food, medical equipment) and exemptions. Commitment to apply EU minimum.
• Possible changes to Stamp Duty on genuine family reorganisations during lifetime – Minister Feetham, Commissioner of Stamp Duties, and Commissioner of Income Tax to report to cabinet in the next 6 months.
• Category 2 status will remain for those who already have it, but future rights to settle in Gibraltar to be carefully considered. An Immigration Criteria Consultation Committee is to be established, to report to the cabinet by end of November 2025, on how best to reform entitlement to residency in Gibraltar in the future. Minister Feetham added to this, that this year consideration of what reforms and enhancement of the Category 2 and HEPSS status’ are necessary to ensure that the regimes remain both competitive and compliant with international standards, reinforcing Gibraltar’s status as a responsible and attractive jurisdiction for high-net- worth individuals.
• Tax refunds to be paid as soon as possible.
• Minimum wage to increase by 60p to £9.50 p/h (i.e. just over twice inflation) i.e.£18,525 pa (37.5hrs p/w).
• Old age pension and disability benefit increased by inflation at 3%.

OTHER BUDGET ANNOUNCEMENTS/COMMENTS

• The Gibraltar Contingency Council, jointly chaired by the Governor and Chief Minister, will carefully consider all aspects of the security implications of a totally fluid border.
• Will not borrow to fund pay increases to public sector workers, nor increase taxes to fund this. Must be met by day to day revenue. All public sector salaries will increase. Percentage increase dependent on level of earnings (between 1% and 5%). Highest benefits to lowest earners in the public sector. Total costs approx. £8.8m.
• Living Wage Commission to be formed, led by Sir Joe Bossano, to determine what a living wage for Gibraltar should be.
• Gibraltar e-gov membership pass will be launched, a digital service for citizens.
• Work is now commencing to equalise the entitlement to state pensions at age 60.
• Draft legislation to amend Marriage Act, to increase the legal age of marriage to 18 (from 16 years) to align with England and Wales.
• £6.3m approximate costs to date for McGrail Inquiry.
• Gibraltar to be removed from Spain’s fiscal paradise list ‘imminently’.
• £1.5m of £500m Covid debt repaid. Commitment to pay at least 10% of any annual surplus towards this debt.
• Yearly average 20 individuals unemployed (2024: 27). In June 2025 only 16 individuals.
• Tax avoidance bill (published on 10 April 2025) to be laid before Parliament soon.

FULL BUDGET SPEECHES

• The Chief Minister’s Budget Speech can be read here:
  The  Budget  2025  –  The  Chief  Minister’s Address – 479/2025
• The Minister for Justice, Trade and Industry’s Address can be read here:
  The Budget 2025 – Minister for Justice, Trade and Industry – 492/2025
• The draft Estimate of Revenue and Expenditure for 2025/2026 is also available online:
  Draft Estimates Book 2025-26.pdf

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The Act, which was introduced to ensure that all eligible employees in Gibraltar’s private sector have access to a pension scheme, has been a reality for the Gibraltar’s largest employers since 2021. And now, with a phased implementation to assist businesses to prepare, the deadlines are fast approaching for Gibraltar’s medium and smaller employers.

This article is intended to walk you through the legislation, set out what actions you need to take and when, and explain how Sovereign can help you stay compliant and identify and establish the most suitable pension scheme for your business and employees.

Key Dates

The rollout for Gibraltar Workplace Pensions is being implemented in five stages, based on company size:

• Enterprise (251+ employees) – 1 August 2021
• Large (101 to 250 employees) – 1 July 2022
• Medium (51 to 100 employees) – 1 July 2025
• Small (15 to 50 employees) – 1 July 2026
• Micro (14 or fewer employees) – 1 July 2027

Who needs to be enrolled?

Under the Act, businesses must automatically enrol any eligible employee into a compliant occupational pension scheme. Eligibility generally applies to employees who:

• Are over the age of 15.
• Have been employed in the business for one year or more.
• Earn gross earnings from that employment of £10,000 or more per year.
• Are not already part of another approved pension scheme.

If any employees meet these criteria, as the employer you are responsible for enrolling them into a compliant pension scheme and the making the required contributions into that scheme.

An employee can opt-out. Should they choose to do so, the employee must complete an opt-out form that the employer must submit to the Pensions Commissioner.

The post Gibraltar Workplace Pensions – Complete Guide appeared first on The Sovereign Group.

If your business in Gibraltar has between 51 and 100 employees, the clock is ticking. From 1 July 2025, you’re legally required to offer a workplace pension under the Private Sector Pensions Act 2019.

With only three months until the deadline, and a turnaround time to establish a plan of two to three months, the time to act is now!

A quick refresher

Gibraltar’s mandatory workplace pensions regime has been phased in gradually since 2021. The goal is simple: to increase financial security for all workers in Gibraltar, by ensuring they have access to a workplace pension and will be financially protected in their later years.

Employers are required to provide access to a pension scheme for employees who:

• Are over 15 years of age
• Have worked for them for more than one year
• Earn more than £10,000 per year

Once enrolled, both employer and employee must contribute a minimum of 2% of earnings into the employee’s pension scheme.

What happens on 1 July?

From this date, all ‘Medium’ employers (defined as those with 51–100 employees) must be compliant. If you fall into this bracket, you must have a qualifying pension scheme in place and be ready to enrol eligible employees.

Failure to comply may result in penalties, but more than that, it’s a missed opportunity to offer a valuable benefit to your team. Pensions are increasingly seen as a key part of a competitive employee benefits package, helping businesses to attract and retain top talent in a tight labour market.

Why now?

We’re already seeing proactive employers getting ahead of the deadline to avoid a last-minute rush and to ensure they have time to properly plan, communicate and implement their schemes. Delays in setup could lead to payroll complications, administrative strain, or even non-compliance.

How Sovereign can help

Sovereign Pension Services (Gibraltar) Ltd is working closely with local businesses to ensure smooth and compliant implementation. We offer fully compliant Occupational Pension Schemes that meet all the requirements of the Act, and we can also handle the day-to-day administration, so you don’t have to.

Our team has already helped many Gibraltar employers across all size categories, from the earliest adopters to those yet to be brought into scope. Whether you’re a ‘Medium’ employer preparing for the July deadline or a smaller company thinking ahead to future phases, we’re here to support you at every stage.

To find out how we can help, contact Darren Whitley on +350 200 76173 or email dwhitley@SovereignGroup.com.

The post Auto-Enrolment: Are You Ready for 1 July? appeared first on The Sovereign Group.