If you are a business based in Spain or elsewhere, and you have been operating in Gibraltar, or are considering doing so, the Government of Gibraltar has recently published new rules setting out what is required of overseas businesses that want to operate here lawfully.
In this article, we will cover everything you need to know to both become and stay compliant.
The Treaty Does Not Cover Services
The UK–EU Treaty on Gibraltar provides for the free movement of people and goods, but not services. Businesses established in Spain or elsewhere in the European Union therefore have no automatic right under the Treaty to enter Gibraltar and provide services.
Having established a new Business Compliance and Enforcement Team, the Government has already approached a number of Spanish businesses found to be providing services in Gibraltar without the required authorisation, instructing them to cease operating until they register.
However, it’s been confirmed that the Enforcement Team will not take action against a business that can show it has already submitted its registration or Detached Worker application and that it is being processed.
The Three Ways of Operating in Gibraltar
The Government’s guidance has set out three main structures through which an overseas business can operate lawfully in Gibraltar.
Company: an independent legal entity incorporated in Gibraltar through Companies House. If you already have a company incorporated outside Gibraltar, you can register it as a foreign company with a place of business in Gibraltar under Part XIV of the Companies Act, without needing to form a new Gibraltar company. Given the technical formalities involved, the Department of Business strongly recommends engaging a specialist service provider to handle this process on your behalf.
Partnership: two or more persons operating together under a business name, without forming a separate company. The first step here is to register a Business Name at Companies House under the Business Names (Registration) Act 1918.
Self-employed: an individual operating under their own name. If you are operating under your own forename and surname without using a separate business name, you do not need to go through Companies House first and can proceed directly to the Business Application.
Companies House Gibraltar is typically the first step for companies and partnerships. Once the legal structure is in place, any individual, partnership, or company wishing to sell goods or provide services in Gibraltar must then submit a Business Application through the Office of Fair Trading. The Companies House step establishes the legal entity, while the Business Application obtains the licence to operate. Both may be required.
The Detached Worker Route
For businesses that do not wish to incorporate a company in Gibraltar or submit their own Business Application, there is a fourth option: the Detached Worker regime. This allows an overseas company to collaborate with a business already registered in Gibraltar, registering its own workers as temporarily posted to Gibraltar to carry out specific work. There are three tiers, depending on the length of stay:
Non-Chargeable Detached Workers: visits of less than 48 hours for presentations, meetings, training, or advice. The business must notify the Director of Employment by email before the visit and provide the worker’s name, copy of their passport, the company, period and the reason for the visit, as well as reporting the worker’s entry and exit.
Expedited Detached Workers: stays of up to 10 working days, covering on-site work and internal audit reviews among other activities. Requires letters from both the contracting Gibraltar business and the employing company, plus a certified copy of the passport.
Detached Workers (general regime): stays of more than 10 working days. Requires a formal notification form, an A1 certificate (for EU companies) or HMRC confirmation (for UK companies), passport or ID card, and a copy of the employment contract.
A fee applies for each detached worker registered under the Expedited and General routes. Any worker who is not a British or EU national will also need a work permit.
Employees and Directors
Once a company, partnership, or self-employed activity has been registered, any employees, working directors, partners, or self-employed workers providing services to the business must also be registered with the Department of Employment.
One-Off Deliveries from the Campo de Gibraltar
Businesses that only deliver goods from the Campo de Gibraltar to a single client in Gibraltar, in a single transport operation that ends at the point of delivery, do not need a licence or registration for that one-off roadside delivery. If the delivery involves installation, on-site service, or a subsequent collection, however, the exemption does not apply.
Gibraltar Is Open for Business
The Government has made it clear that this is not intended to close Gibraltar off for overseas businesses. The treaty has created genuine commercial opportunities on both sides of the frontier, and Gibraltar actively wants to attract businesses from Spain, Europe, and beyond, provided they do so through the correct channels.
Gibraltar offers a favourable tax environment, a well-regulated financial services sector, and now, with the border open, significantly improved connectivity with the surrounding region.
Getting Started the Right Way
This is precisely the kind of process where having the right support in place makes a real difference. The registration process involves multiple steps, multiple authorities, and different requirements depending on the structure you choose, and it can be difficult to manage this alone.
For more than 50 years, Abacus has supported individuals, entrepreneurs, and international businesses through the formation and ongoing management of companies in Gibraltar and in a number of other key jurisdictions. Our Company Management services cover company formation and domiciliation, accounting and financial reporting, and ongoing administrative and compliance support – all the practical infrastructure that businesses need once they have decided to set up in Gibraltar.
If you are considering operating in Gibraltar, please do not hesitate to get in touch with our team to see how we can assist you. We can help ensure the setup is straightforward and the administration is handled properly from day one.