On 11 July 2023, Gibraltar’s Chief Minister, Fabian Picardo QC, delivered “A Budget to support the less well-off and the overall integrity of the nation’s finances in the short, medium and long term”.


  • This year’s budget has shown a 24% increase in revenue from personal taxes and a 31% increase in revenue from corporate taxes over the last two years, exceeding Government’s expectations.
  • Personal tax rates were increased by 2% last year on all income bands.
  • Net debt to GDP ratio fell from 25.6% in 21/22 to 22.4% in 22/23.
    Election this Autumn so possibly last budget as Chief Minister.
  • 7th year since the Brexit referendum.
  • No austerity, no cuts of jobs and services.
  • Annual expenditure must not exceed annual revenue.


  • Personal tax rates that were increased by 2% last year on all income bands will be halved to 1% for those earning from £25,000 to £100,000. Therefore, making the maximum personal tax rate 26%. This applies to all bands under GIBS and ABS.
  • Those earning above £100,000, whether under ABS or GIBS, will continue to pay the maximum personal tax rate of 27%.
  • The above is a 2-year measure and the maximum effective personal tax rate will return to 25% next year.
  • In September 2023, every employee in the public sector will receive a single payment that will not be subject to tax:
    • for those earning below £50,000: £1,200.
    • for those earning £50,000 – £75,000: £900.
    • for those earning £75,000 – £100,000: £600.
  • These payments will cost £6.5 million. Private sector employers may provide similar payments on the same terms. Such payments will be excluded from payroll and will not be tax deductible against company profits.
  • The first-time buyer’s allowance for no stamp duty will increase to £300,000 (from £260,000).
  • There will be an increase in stamp duty on property sales above £800,000, up from 3.5% to 4.5%.
  • There will be consideration on implementing stamp duty on the assignment of off plan purchase agreements.
  • There will be new tax credits introduced:
    • Those who are enrolled in a gym, or who contract a personal trainer who is registered with the Income Tax Office will be entitled to a tax credit of 10% of the costs verified/li>
    • Those who have children undergoing private school tuition in Gibraltar will be entitled to 10% of the total cost.
    • Single practitioner lawyers will be entitled to a tax credit of 75% of the LSRA fees.


  • Information on the EU regarding a Schengen Agreement. Talks are still ongoing.
  • Those on minimum wage, receiving old age pension or disability benefit will obtain increases in line with estimates for inflation (estimated 6.2%, but rounded to 7%). Minimum wage will increase to £8.60 per hour (from £8.10).
  • Occupational pensions will increase by 2%.
  • Public sector employees will have a minimum wage of £21,674 per annum. This is a 16% increase and aligns with UK parity.
  • The vacancy fee at the EBT shall be reduced from £18 to £8.60. The Department of Employment will introduce a penalty for not respecting the 10-day vacancy period.
  • Starting from 1 August, all fees payable to the Government will increase in line with inflation.
  • There will be no increase in water/electricity bills.
  • Import duty
    • Current measure reducing import duties to mitigate the effect of high fuel prices will remain until 31 December 2023.
    • The vehicle duty cap in relation to the importation of petrol/diesel cars will be increased from £25,00 to £35,000.
    • A new cap will be introduced on importation of pleasure vessels: £35,000.
    • Tobacco duty will increase – 50p per carton/5p per packet of 20. Duty on vapes will be at 50% of the rate of a packet of 20 cigarettes.
    • Import duty will be reduced to zero in relation to the following health & fitness related items: fitness trackers, bicycles, bicycle accessories or spare parts, treadmills and all other gym or fitness equipment.



Contact Sovereign Tax Services
Get in Touch

Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.