Gibraltar Introduces New Stamp Duty Regime

by Jason Gorringe, Tax-News.com, London

14 December 2005

The Government of Gibraltar has published a new Stamp Duties Ordinance implementing the Budget Measure to abolish stamp duty on all instruments except those relating to real estate in Gibraltar.

The Bill maintains the language of the old Ordinance but deletes provisions no longer applicable. It also modernises certain aspects of stamp duty administration.

In respect of real estate in Gibraltar the Bill moves from a flat rate of duty (currently 1.26%) to a scale, as follows:

Conveyance or Transfers:

• Where the property value does not exceed £160,000 - 0%
• Where the property value exceeds £160,000 but not £250,000 - 1.26%
• Where the property value exceeds £250,000 but not £350,000 - 1.6%
• Where the property value exceeds £350,000 - 2.5%

There are transitional provisions exempting existing contracts and agreements from duty increases in certain circumstances.

For mortgages etc the scale is as follows:

• For £200,000 or less 0.13% (no change)
• For more than £200,000 0.20%

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