To work in Gibraltar, your employer must register the vacancy and your terms of engagement with the Department of Employment, and anyone who is not an entitled worker needs a work permit before day one. Once on the payroll you pay 10% social insurance and income tax under whichever of Gibraltar’s two systems costs less. Since August 2026, EU citizens who live in Spain and commute can also hold a frontier worker certificate under the UK–EU treaty.
At a glance
| Topic | Position as of October 2026 |
|---|---|
| Who registers employment | The employer, with the Department of Employment (formerly the ETB) |
| Vacancy notice | At least 10 days before the start date |
| Work permit | Needed for non-entitled workers, typically non-EU nationals; employer applies before you start |
| Employee social insurance | 10% of gross pay, £14.33 to £40.79 a week |
| Income tax | Lower of the Allowance Based System and the Gross Income Based System; tax year runs 1 July to 30 June |
| Minimum wage | £10.00 an hour from 1 August 2026 |
| Frontier workers | EU citizens resident in Spain can apply for a one-year frontier worker certificate |
Who needs a work permit in Gibraltar?
Gibraltar’s employment law makes it an offence to employ someone who is not an “entitled worker” without first obtaining a permit. Entitled workers broadly include British nationals, Swiss nationals and people who have the right to work through residence or certain family ties. Most other nationals, including people from outside Europe, need a permit.
The permit is the employer’s responsibility. Key points from the Department of Employment:
- The application must be made before your start date, for a specific post.
- Permits last no longer than 12 months, and renewal applications must go in before the final 14 days of validity.
- The employer supplies your passport, a Notice of Terms of Engagement, proof of qualifications and experience, a certificate of good conduct and a copy of the vacancy notice.
- Employing someone without a required permit carries a £3,000 fixed penalty.
The position of EU and EEA nationals is less clear-cut than before Brexit. Practitioner guidance from 2025 said previously entitled EU workers were still being treated as before, pending the treaty. We have not found published guidance confirming whether EU and EEA nationals who move to Gibraltar (rather than commuting from Spain) now need a work permit. What is clear is that they need a residence permit like other newcomers, and since August 2026 the Director of Employment can approve a job on condition that the worker obtains a residence permit within 90 days. Check your own case with the Department of Employment before accepting an offer.
How is an employment contract registered?
Gibraltar does not file the contract itself; instead, the employer notifies the Department of Employment at each stage of the job. If you are setting up your own business, you will need to register it as an employer too (see how to set up a company in Gibraltar).
1. Register the business
Every business with a place of business in Gibraltar must register with the Department of Employment and renew annually.
2. Register the vacancy
The employer files a Notification of Vacancy at least 10 days before the worker starts. The standard fee is £10 from 1 August 2026 (previously £9.50), with late surcharges of £15 or £30. Employers with 10 or fewer staff have been exempt from vacancy fees since January 2022. The Government has also announced a 36-month waiver of vacancy registration fees for retail and wholesale businesses, running from the start of the treaty arrangements; press reports say it covers firms with fewer than 250 staff.
3. File the Notice of Terms of Engagement
This is required for every worker, whatever their nationality. Any later change to your pay, hours or personal details is filed as a variation.
4. File termination
When a job ends, the employer must submit a Termination of Employment form within 7 days. Failing to register a business, vacancy or employee can lead to a £3,000 fine; a missed termination form, £750.
Statutory minimums also apply: the first week is probationary, annual leave starts at 15 days on a five-day week and rises with service, and paid sick leave starts after three months’ employment.
Does a job let you live in Gibraltar?
Not on its own. New residence criteria apply to people who did not hold residence before 6 October 2025, and the Residency Regulations 2026 have applied since 14 July 2026. To get an employee residence permit you generally need:
- a contract of at least a year paying at least average gross annual earnings, currently £37,500 (updated annually);
- an employer that has traded in or from Gibraltar for at least a year and is fully licensed and up to date with filings;
- to be 55 or under, unless the Government waives this;
- a vetting certificate from your previous country of residence;
- a primary home in Gibraltar, either owned and not let, or rented on a lease of at least 12 months.
Applicants under 30 can qualify on a lower salary if the employer pays tax and social insurance as if the threshold were met. Permits last a year. If your employment ends, the permit is revoked 16 weeks after the termination notice is filed with the Department of Employment, unless you have found a new qualifying contract by then. (The earlier policy paper proposed eight weeks; the Regulations set 16.) Housing rules are covered in buying and renting property in Gibraltar, and the wider routes in our residency hub.
Senior executives on high salaries can apply for the separate HEPSS regime, and wealthy individuals who do not intend to work locally can look at Category 2 residency.
How much social insurance will you pay?
Social insurance is earnings-related and deducted through payroll. The rates below have applied since 1 July 2025, and Budget 2026 left the minimum and maximum amounts unchanged.
| Contributor | Rate | Weekly minimum | Weekly maximum |
|---|---|---|---|
| Employee (under 60) | 10% | £14.33 | £40.79 |
| Employer | 18% | £31.97 | £56.22 |
Employees aged 60 or over pay nothing, although their employer still pays its share. From 1 July 2026 the state pension age for men fell to 60, matching women. Contributions are also the usual basis for Gibraltar Health Authority (GHA) registration.
Separately, workplace pensions are being phased in under the Private Sector Pensions Act 2019. Employers with 15 to 50 staff had to offer a qualifying scheme from 1 July 2026, and smaller employers follow from 1 July 2027. According to Sovereign’s 2026 pensions guide, employers with more than 50 staff were brought in earlier, in stages from 2021 to July 2025, and the minimum contribution is 2% of earnings from the employer and 2% from the employee.
How does income tax work in Gibraltar?
The tax year runs from 1 July to 30 June, and employers deduct tax through PAYE. There are two systems, and the Income Tax Office assesses you under whichever produces the lower figure. Budget 2026 made no change to personal tax rates, so the tables below continue to apply for 2026/27. Our full guide to Gibraltar income tax also covers tax residence, allowances and filing returns.
Allowance Based System
This system taxes income after allowances, such as the personal allowance. PwC’s tax summary, reviewed in August 2026, lists it at £3,455 for 2026/27, the same as in 2025/26.
| Taxable income | Rate |
|---|---|
| First £4,000 | 14% |
| Next £12,000 | 17% |
| Above £16,000 | 39% |
If your income is £11,450 or less, no tax is payable. Tapering relief applies above that, up to £19,950 according to EY and Sovereign (PwC’s summary gives £19,500), so check the exact limit with the Income Tax Office if your income is near it.
Gross Income Based System
This system taxes gross income with only a small number of capped deductions: mortgage interest on your main home (up to £1,500 a year), pension contributions (up to £1,500), private medical insurance premiums (up to £3,000), approved first-home purchase costs (up to £7,500), approved property frontage works (up to £5,000) and renewable energy installations (up to £6,000 over two years). Separate rate tables apply depending on whether your gross income is above or below £25,000.
| Gross income up to £25,000 | Rate |
|---|---|
| First £10,000 | 6% |
| Next £7,000 | 20% |
| Balance | 28% |
| Gross income above £25,000 | Rate |
|---|---|
| First £17,000 | 16% |
| £17,001 to £25,000 | 19% |
| £25,001 to £40,000 | 25% |
| £40,001 to £105,000 | 28% |
| Above £105,000 | 25% |
The 25% rate on the top slice reflects the Government’s cut of the top rate to 25%. HEPSS holders are taxed only on the first £160,000 of employment income, giving annual tax of £39,940 under the 2025/26 figures.
What changed with the 2026 UK–EU treaty
The UK–EU treaty has applied provisionally since 15 July 2026. Routine immigration checks have gone from the land frontier, and Schengen entry checks now take place at Gibraltar’s airport and port instead.
For workers, the main change is the TGEU Implementation (Frontier Workers) Regulations 2026, in force since 13 August 2026:
- A frontier worker is an EU citizen legally resident in Spain who works in Gibraltar (or is self-employed in both territories) and returns to Spain at least weekly.
- You can apply on eGov for a frontier worker certificate, valid for a year and renewable.
- Holders get equal treatment with British nationals living in Gibraltar on pay, conditions, dismissal and tax and social advantages.
- Status can be kept during illness, some involuntary unemployment after more than a year’s work, or retraining.
- Some public service posts can remain restricted.
The treaty does not give EU citizens a right to live in Gibraltar, and Gibraltar keeps control of who may reside there. People with existing rights under the Withdrawal Agreement keep their protections: regulation 27 of the Residency Regulations 2026 says nothing in them affects those rights. Neither the regulations nor the practitioner guidance we reviewed say whether existing frontier workers must switch to the new certificate, so ask the Department of Employment or your employer’s adviser. For detail on commuting, see working across the frontier after the treaty.
How are frontier workers taxed?
If you live in Spain and work in Gibraltar, Gibraltar normally deducts tax and social insurance through payroll on your Gibraltar earnings. If you are tax resident in Spain, how Spain treats that income depends on the UK–Spain tax agreement and Spanish domestic rules, which the 2026 treaty did not change. Spanish advisers describe it as not simply taxed twice, but Spain may collect a top-up where Spanish tax would be higher. A Spanish tax adviser should confirm your position before you start.
The 2019 UK–Spain tax agreement on Gibraltar also sets tie-breaker rules. For example, you are treated as Spanish tax resident if you spend more than 183 nights a year in Spain or keep a permanent home there, and Spanish nationals who moved to Gibraltar after the agreement stay Spanish tax resident. Getting this wrong can mean tax bills in both places, so take advice before you sign a cross-border contract.