Gibraltar traders report strong increase in sales since Treaty

HM Government of Gibraltar has received encouraging feedback from a number of local traders, who have reported a significant increase in sales in the two weeks since the Treaty came into effect on 15 July.

Some businesses have reported that euro-denominated sales have increased by more than 240 per cent compared with the two weeks before 15 July, and by over 150 per cent compared with the same period in 2025. As these transactions are largely in euros, they point clearly to increased spending by visitors to Gibraltar following the removal of formal immigration controls at the land frontier.

This increased activity has so far generated an estimated 800,000 pounds in Transaction Tax and 975,000 pounds in Import Duty on goods imported into Gibraltar since 15 July.

These figures are expected to rise further. Ahead of the Treaty coming into force, many businesses took advantage of the Government's guarantee that goods dispatched before 15 July would continue to benefit from the pre-Treaty duty arrangements, allowing them to build up stock. As a result fewer goods vehicles have been arriving in Gibraltar in recent weeks, with volumes currently running at around two thirds of normal levels. As retailers begin replenishing their stock during August and September, the Government expects Transaction Tax receipts to rise further still.

Chief Minister Fabian Picardo said: "These are very encouraging early indications of the positive impact the Treaty is already having on Gibraltar's economy. We are hearing directly from traders that more visitors are coming into Gibraltar and, importantly, that they are spending money in our shops, restaurants and businesses.

"While it is still early days, the initial signs are extremely positive. As businesses begin to replenish their stock over the coming weeks, and teething problems are a thing of the past, we expect to see the full fiscal benefits become even clearer. This is exactly the type of economic activity and shared prosperity that the Treaty was designed to deliver."