Gibraltar sales surge after border treaty lifts controls

The treaty that removed formal immigration controls at Gibraltar's land frontier took effect on 15 July. In the two weeks following the change, traders reported euro‑denominated sales rising by more than 240 % compared with the period before the treaty and over 150 % higher than the same stretch in 2025. The surge is attributed to increased day‑trippers and workers from Spain, boosting spending in shops, restaurants and bars.

Chief Minister Fabian Picardo described the early figures as “very encouraging”, noting that the activity has already generated roughly £800,000 in transaction tax and £975,000 in import duties since the treaty’s start. Pre‑treaty stockpiling meant fewer goods vehicles arrived in recent weeks, but officials expect tax receipts to climb further as retailers restock through August and September. The new transaction tax is set at 15 % (rising to 17 %) with lower rates for essential goods.

The early data suggest the treaty is delivering the promised increase in footfall and economic activity for Gibraltar.