Gibraltar does not apply Value Added tax (VAT), but does apply an import duty on imported goods. The general rate for import duty is 12% (but not for cars).
A common question asked by our Category 2 clients is what is the cost of importing their car into Gibraltar. The table below confirms the import duty rates:
| Petrol/diesel Motor vehicles | Duty payable |
| Engine Size | Private imports |
| Not exceeding 1500cc | 25.00% |
| More than 1500cc but not exceeding 2000cc | 30.00% |
| Over 2000cc | 35.00% |
| Hybrid cars | Duty payable |
| Engine Size | Private imports |
| Flat rate for all engine sizes | 5% |