Tuesday, 7 June 2011

Import duty into Gib - update

We had a query about importing a vehicle into Gibraltar so I thought I would answer it in a main post so everyone gets to see the answer. (Original post here).

Here were the questions:

What is the accurate duty fee to pay? Is it 30%, 40%, 12%?

And how does it vary depending on engine size?

How is the value determined and is it worth using an online evaluation of the plates to get an idea of how much will be required to pay?

thx for the usefull article!

My article referred to importing a second hand vehicle. The duty for these is as follows:

Up to 1500cc - 25%
From 1500 - 2000cc - 30%
More than 2000cc - 35%

For new vehicles the duty is less (ie half the second hand duty):

Up to 1500cc - 12.5%
From 1500-2000cc - 15%
More than 2000cc - 17.5%

That answers the first two questions.

The value of the vehicle is determined by the customs officer who examines it. Bear in mind this is part of their daily job and they are experienced at it. We considered we were given a fair valuation.

So, no, I don't think an online evaluation of plates would help because at the end of the day it is the custom officer's decision.

If anyone is bringing their vehicle in from Spain - or elsewhere - don't forget to take it off the other system first BEFORE you import it into Gibraltar. If you import into Gibraltar, without taking it off another system, it will just cost you money to run on two systems.

I should add that different rules apply for the military who can get a bond and avoid paying duty as they are 'temporary residents' and intend to take their vehicle back home.

Although there were changes made in the 2010 budget, they did not affect duty on private imports that I cited above.

I include the quote from the budget below:

Import duty on pedal cycles, which is currently 12%, is reduced to zero;
Import duty on electric cars is reduced to zero;
Import duty on hybrid cars is halved for dealers to 6.25%,7.5% and 8.5% for cars of less than1500cc, 1500 to 2000cc and above 2000cc respectively (12.5%, 15% and 17% respectively, for private
Mr Speaker, 2 stroke engines create more pollution than 4 stroke engines, yet the duty on two stroke under 50cc is 6%, while the duty on 125cc 4 stroke is 30%. We need to discourage, not encourage the use of 2 stroke engines. Accordingly the duty on a 2 stroke under 50 cc motorcycle rises to 30% for dealers (it is already 30% for private imports) and all 2 stroke engines, regardless of cubic capacity will have a duty rate of 30%. In contrast, the duty on a four stroke motorcycle of any cubic capacity is cut from 30% to 15% for dealers (private imports will remain at 30%, except 4 stroke under 50cc which will remains as it is at present, namely at 6% for dealers and 12% for private imports.
Import duties on motor vehicles is increased for dealers as follows:
- Less than 1500cc by 2.5% from 12.5% to 15%
- 1500cc to 2000cc by 3% from 15% to 18%
- Over 2000cc by 4.5% from 17.5% to 22%
They remain unchanged for private imports

Don't forget, to import a vehicle onto Gib plates, you need to be a Gib resident or have a business registered in Gibraltar.

Hope that helps. But it's always advisable to ring customs and check. Or walk in, depending on where you are.

1 comment:

Kyle Reynolds said...

Thanks alot! That really helps...