Gibraltar – Buying or Importing a Car

How do I buy a new car in Gibraltar as a foreigner?

The single most important rule for newcomers to grasp is that purchasing a car and registering it in Gibraltar requires the buyer to be resident in the territory. Once you have relocated to Gibraltar and hold either a residency permit or satisfactory evidence that residency is in progress, you are free to approach any of the territory’s licensed dealerships and proceed with a new vehicle purchase.

Dealerships will generally ask you to produce a valid passport or national identity card, your Gibraltar residency permit or supporting documentation indicating imminent residency, and a proof of address within Gibraltar. The sales team will handle the purchase paperwork on your behalf and can walk you through the initial registration steps with the Driver and Vehicle Licensing Department (DVLD). Since documentation requirements can evolve, always ask the dealership exactly what they need from you at the time of purchase.

There is, however, a separate route available to those not yet resident in Gibraltar. Two specific regimes exist under which a motor vehicle may be purchased and registered there on export plates. Vehicles bought new from a Gibraltar motor vehicle trader by genuine visitors, and vehicles bought new for export from Gibraltar, may qualify for a nil rate of duty if the relevant conditions are satisfied. This arrangement is primarily intended for visitors who will be taking the vehicle out of the territory, not for those intending to remain as permanent residents.

Financing options for expats buying new vehicles in Gibraltar tend to be more limited than in larger markets. Most purchases — particularly for those who have only recently arrived — are funded by cash or direct bank transfer, since local lenders may require an established credit history and an existing banking relationship in Gibraltar before agreeing a loan. If you need finance, speak to a Gibraltar-based bank before committing to any purchase. Always verify the current lending conditions directly with the institution you have in mind.

How do I buy a used car in Gibraltar?

As with new vehicles, buying a used car and registering it in Gibraltar requires the purchaser to be resident in the territory. Once a price has been agreed, payment made, and a receipt provided, the change of ownership process can begin, and the vehicle is re-registered in the new owner’s name by the Driver and Vehicle Licensing Department. Used vehicles can be found through local dealerships, classified advertisements, and online platforms such as GibraltarCars.com.

Before committing to any used vehicle purchase, conduct a thorough inspection and, wherever possible, arrange a test drive. Request the complete service history, the current roadworthiness certificate, and a clear account of any outstanding fines. It is worth noting that Gibraltar currently has no equivalent of an HPI (Hire Purchase Inspection) check, which is available in some other jurisdictions for identifying outstanding finance or debt against a vehicle. Buyers therefore need to rely on asking the seller directly and reviewing all available paperwork carefully. If any uncertainty remains, seek independent legal advice before the transaction is finalised.

The transfer of ownership requires both parties to complete prescribed forms. Form 5 (Application for Registration of a Motor Vehicle on Transfer) must be completed by the buyer and submitted to the Driver and Vehicle Licensing Department, together with proof of identity such as a passport, ID card, or Gibraltar driving licence. The seller, for their part, completes Form 6 to confirm their side of the transfer. Both forms are available online.

Full details of the relevant forms and the legislation governing vehicle transfers can be found on the Gibraltar Laws website. Once ownership has been recorded at the DVLD, a new certificate of registration will be issued in the buyer’s name. Do not drive the vehicle on public roads until the transfer is formally confirmed and you hold valid insurance in your own name.

Can I import a vehicle into Gibraltar, and how does the process work?

Every motor vehicle brought into Gibraltar must be registered. Registration is triggered either when a brand-new vehicle is sold by a local dealership or when an individual brings a vehicle into the territory as a private import. If you are moving to Gibraltar and wish to bring your current vehicle with you, the following steps set out the standard procedure for a permanent private importation.

Gibraltar drives on the right, and both right-hand drive (RHD) and left-hand drive (LHD) vehicles are permitted. That said, if you are importing a right-hand drive car — typical of vehicles registered in the UK or Ireland — be aware that driving on the right in such a vehicle can be less convenient, particularly at toll booths and when overtaking, and may reduce its resale appeal. There is no blanket ban on vehicles of any particular age, but any imported vehicle must satisfy the roadworthiness and type approval requirements described below. In practice, the vehicle must meet the standards established under the European Community Whole Vehicle Type Approval (ECWVTA) framework and Gibraltar’s Motor Vehicle Test Regulations before it can be registered.

The full import process, step by step, is as follows:

1. Declare the vehicle on arrival. The owner of a vehicle that is to be permanently imported into Gibraltar must declare the car or motorbike on entry to be examined by Customs. A form available at the point of entry must be filled in. This form also states that the owner guarantees to pay duty on the vehicle on the next working day.
2. Present the vehicle for valuation. It is necessary to take the vehicle to the Entry Processing Unit between 09:00 and 12:00 the following working day to have it valued. A customs officer values the vehicle and completes the Customs Declaration form. The Entry Processing Unit is located at British Lines Road, Gibraltar.
3. Pay import duty. Cash or a cheque from a Gibraltar bank are both acceptable payment methods for the duty. Once completed, HM Customs issues a receipt of payment and a letter for the Licensing Authority designating it lawfully imported. This letter contains the new Gibraltar registration number for the vehicle.
4. Contact the Driver and Vehicle Licensing Department. Take the letter to the Driver and Vehicle Licensing Department, where the vehicle will be allocated a date and time for its roadworthiness test at the Motor Vehicle Test Centre.
5. Arrange insurance before the test. Vehicle insurance should be arranged before the roadworthiness test, as proof of insurance will be required.
6. Obtain and fit Gibraltar licence plates. Gibraltar licence plates must be obtained from a commercial outlet (motor vehicle retailer) with the correct registration number, and attached to the vehicle the day before the roadworthiness test. The importation certificate and proof of identification are required to get the plates.
7. Pass the roadworthiness test. The vehicle is tested at the Motor Vehicle Test Centre on Eastern Beach Road. When the vehicle has successfully passed the inspection it is registered in Gibraltar and issued with a European-approved Gibraltar Certificate of Registration.
8. Collect your Certificate of Registration. The Certificate of Registration can take up to a week to process before collection.

Those who bring a vehicle into Gibraltar temporarily without any intention of taking up residency may do so without paying duty, provided they are not Gibraltar residents, their stay is genuinely temporary, and the vehicle is for their personal use only.

The two principal official bodies you will need to deal with for any vehicle importation are HM Customs Gibraltar (covering import duty, declarations, and valuations) and the Driver and Vehicle Licensing Department (DVLD) (covering registration and roadworthiness testing). Always confirm the current requirements and procedures with both bodies before importing, as processes are subject to revision.

What are the costs involved in importing a car to Gibraltar?

One of the most striking features of Gibraltar’s tax environment for vehicle buyers is the complete absence of VAT. This distinguishes Gibraltar sharply from neighbouring Spain — where VAT stands at 21% — and from the majority of EU member states, where equivalent taxes can add substantially to the price of any vehicle. In Gibraltar’s place, import duty is the primary levy applied to vehicles entering the territory.

Gibraltar levies no Value Added Tax. The territory’s main indirect taxes are import and excise duties, stamp duty, and gaming duty. Although most goods brought into Gibraltar attract import duty at varying rates, motor vehicles are assessed at different rates depending on the engine type, engine size, and whether the importation is being made by a dealer or a private individual. Always verify the rate applicable to your specific vehicle with HM Customs Gibraltar before proceeding with an import.

It is also essential to be aware of a significant forthcoming change to this regime. In his June 2025 Budget address, the Chief Minister announced the introduction of a new transaction tax that would replace import duties. This new tax would only take effect once the agreement granting Gibraltar full access to the Schengen area has been ratified and enacted into law. The transaction tax would be introduced in phases — beginning at 15% in the first year, increasing to 16% in the second year, and reaching 17% in the third year. Buyers and importers should monitor official Government of Gibraltar announcements carefully, as this development could materially alter the cost of importing a vehicle when it comes into force.

Beyond import duty, the typical costs you should plan for when importing a vehicle to Gibraltar include:

• Import duty: Calculated on the vehicle’s assessed value by HM Customs at the time of importation. The rate varies by engine type, size, and whether the import is by a dealer or a private individual. Check current rates at HM Customs Gibraltar before importing (as of 2025).
• Roadworthiness test fee: A fixed fee is payable when submitting a vehicle for the roadworthiness test at the Motor Vehicle Test Centre. If the vehicle fails and is re-tested within 14 days of the initial examination, the re-test fee is 50 percent of the original amount. Check current fees on the Government of Gibraltar Transport website.
• Licence plates: Gibraltar registration plates must be purchased from a commercial motor vehicle retailer before the roadworthiness test. Costs are modest but vary by supplier.
• Registration and licensing fees: Payable to the DVLD on registration. Current fee schedules are published by the DVLD on the Government of Gibraltar website.
• Shipping costs: Where you are importing from overseas rather than driving across from Spain, costs will vary considerably depending on the country of origin, the shipping method chosen (Roll-on/Roll-off or container), and the carrier. Obtain several quotes from licensed freight forwarders before committing.
• Modifications and compliance: If your vehicle does not already comply with ECWVTA standards, modifications may be necessary. These could include adjustments to headlight beam direction for right-hand driving, speedometer recalibration, and any further safety equipment changes required to meet Gibraltar standards. Costs are highly vehicle-specific.
• Insurance: A Gibraltar insurance policy must be in place before the roadworthiness test. Seek quotes at an early stage, as this cover must be arranged before you can proceed.

Compared with import processes in countries such as Australia or New Zealand — where importing a used vehicle can involve compliance plates, state-level inspections, and potentially significant modification expenses — Gibraltar’s procedure is generally more streamlined. However, unlike some jurisdictions that offer a “removal goods” or personal effects exemption for vehicles arriving with a relocating household, Gibraltar does not provide an equivalent relief, meaning import duty typically applies regardless of the circumstances of importation. Contact HM Customs Gibraltar directly to establish whether any relief might apply to your particular situation.

How do I register a vehicle in Gibraltar?

All vehicle registrations in Gibraltar are handled by the Driver and Vehicle Licensing Department (DVLD), located at Eastern Beach Road (North Front Area), GX11 1AA, Gibraltar. The DVLD is responsible for driving licences, vehicle registration, roadworthiness testing, learner driver training, ownership transfers, and road safety legislation.

When you purchase a new vehicle from a dealership, the dealer will ordinarily manage the registration process and file the required documentation on your behalf. If you are buying a used vehicle privately, you must complete Form 5 (Application for Registration of a Motor Vehicle on Transfer) and submit it to the DVLD along with your identification and evidence of the transaction.

For an imported vehicle, registration follows the customs clearance and roadworthiness inspection procedure described earlier in this guide. The key documents typically required at the point of registration include:

• The HM Customs letter confirming lawful importation and allocating a Gibraltar registration number
• Proof of identity (passport or Gibraltar ID card)
• Proof of residence in Gibraltar
• Proof of valid insurance in Gibraltar
• A valid roadworthiness certificate (for vehicles subject to testing)
• Purchase documentation (invoice or bill of sale)
• The vehicle’s original foreign registration document

Once the vehicle has passed its roadworthiness inspection, it is registered in Gibraltar and issued with a European-approved Gibraltar Certificate of Registration. Allow up to one week for the certificate to be processed and ready for collection. This differs from countries where registration can be completed on the spot, so factor that timeframe into your planning. Note also that only vehicles bearing Gibraltar registration plates can be tested at the Gibraltar test centre — vehicles displaying Spanish or UK mainland plates cannot be submitted for testing.

Vehicles registered after 1 March 2025 are subject to updated plate standards. For any eligible vehicle registered after that date, the registration mark must be displayed on a flat rectangular plate or on a flat unbroken rectangular surface forming part of the vehicle, constructed of reflex reflecting material manufactured to British Standard BS AU 145d. When sourcing plates from a commercial supplier, confirm that they comply with this specification.

What insurance do I need to drive legally in Gibraltar?

Any vehicle driven on public roads in Gibraltar must be covered by at least third-party motor insurance — this is the statutory minimum. Many drivers choose to extend their cover to comprehensive protection, and given the competitive pricing within Gibraltar’s insurance market, this is often a sensible choice. Gibraltar operates a fully private insurance market, meaning there is no state insurer and you are free to compare products from the multiple insurers and brokers active in the territory.

A useful advantage for many expats is that Gibraltar-based insurers frequently recognise no-claims discount (NCD) history accumulated in other countries. Insurance tends to be considerably cheaper than in the UK; presenting your existing insurer with a formal No Claims Certificate before requesting quotes could result in a meaningful discount from the outset. Bring a formal no-claims or no-loss letter from your previous insurer when approaching providers. The discount offered will vary between insurers, so it is worth obtaining multiple quotes.

Insurance must be in force before you present your vehicle for its roadworthiness test, since proof of cover is a prerequisite at that stage. This means arranging a policy is one of the earlier tasks in the import and registration process, not something to be left until everything else is in place.

The Financial Services Commission (FSC) of Gibraltar is the regulatory authority that oversees insurance companies operating within the territory. If you have questions about whether a particular insurer holds the necessary authorisation, or about your rights as a policyholder, the FSC is the appropriate body to contact. Always check that any insurer you are considering is FSC-authorised before purchasing a policy.

What driving licence do I need in Gibraltar as an expat?

Gibraltar accepts licences issued in a broad range of countries for driving within the territory, particularly in the period immediately following a person’s arrival as a resident. Holders of a valid EU/EEA driving licence will generally find it recognised without difficulty. If your licence was issued outside the EU/EEA, contact the Driver and Vehicle Licensing Department (DVLD) promptly to establish the specific rules that apply, as recognition periods and exchange conditions differ according to the country of issue.

An International Driving Permit (IDP), obtained from your home country before departure, can serve as a helpful supplement to your national licence during the early weeks of your stay — particularly if your licence is printed in a non-Latin script or is unfamiliar to local authorities. An IDP alone, however, is not a substitute for a locally recognised licence if you plan to remain in Gibraltar as a long-term resident.

For those who wish to convert a foreign licence into a Gibraltar driving licence, the DVLD processes exchange applications. Whether a test is required or whether a direct exchange is available depends on which country issued the original licence. As a British Overseas Territory, Gibraltar’s licensing framework is closely modelled on that of the United Kingdom, and holders of UK licences will generally find the exchange process trouble-free. For all other licences, contact the DVLD directly to find out whether an exchange without retesting is possible and what documents you will need to submit.

Bear in mind that Gibraltar driving licences are treated differently across various jurisdictions. Some EU member states have particular rules about accepting or exchanging a Gibraltar licence. If you anticipate moving on to another country after Gibraltar, or if you plan to drive there regularly, check the relevant rules in advance. All applications for Gibraltar driving licences and bookings for theory and practical tests are handled by the DVLD at Eastern Beach Road.

How do I sell a car in Gibraltar?

Transferring ownership of a motor vehicle in Gibraltar is a bilateral process: both the seller and the buyer are required to complete their respective forms. This is an important point — responsibility for recording the change of ownership does not fall exclusively on the buyer. As the seller, you must ensure that your part of the transfer is formally lodged with the DVLD; until this is done, you remain on record as the vehicle’s registered keeper and retain associated legal responsibilities.

Before advertising your vehicle for sale, gather the following documentation:

• The vehicle’s Gibraltar Certificate of Registration (the equivalent of a V5C logbook in the UK)
• A valid roadworthiness certificate (if applicable)
• Proof of current road tax / vehicle licence
• Proof of identity
• Details of any outstanding fines or charges associated with the vehicle (these should be cleared before transfer)

Once you have agreed a price with a buyer and received payment, both parties complete their respective transfer forms — Form 5 for the buyer and Form 6 for the seller — and submit them to the DVLD. Provide the buyer with a written receipt as a record of the transaction. The vehicle’s registration plates remain with the car unless a personalised registration is involved, in which case separate arrangements may be needed.

Until the transfer of ownership is officially recorded at the DVLD, you as the previous registered keeper remain legally responsible for the vehicle. Do not cancel your insurance until you have received confirmation that the transfer has been processed. Gibraltar does not currently apply capital gains tax to the private sale of a motor vehicle by an individual, though if a vehicle is being sold in the course of a business, you should seek independent financial or legal advice. If in doubt about your tax position, consult the Gibraltar Income Tax Office or a qualified local adviser.

Vehicles can be advertised through local classifieds, online marketplaces, and Gibraltar-based dealerships that may offer part-exchange or consignment options. Keep in mind that road tax (the vehicle licence) does not pass automatically to the new owner upon sale — the buyer will need to obtain their own licence once the registration transfer is complete.

Are there any ongoing costs or obligations for vehicle ownership in Gibraltar?

Keeping a vehicle in Gibraltar entails a number of recurring obligations. These broadly mirror the framework in the United Kingdom, from which much of Gibraltar’s vehicle legislation derives, though there are some differences in testing frequency and fee levels.

Road tax (vehicle excise licence): Every vehicle in Gibraltar must hold a current vehicle licence to be driven or left on a public road. Licences are typically renewed on an annual basis, with fees varying according to vehicle type. Current fee schedules are published by the DVLD on the Government of Gibraltar website. Check the prevailing rates before finalising your budget, as they are subject to periodic revision.

Roadworthiness testing (MOT): All private motor vehicles — cars and motorcycles — over four years old must undergo a roadworthiness test every two years. Goods vehicles, self-drive hire vehicles, and Public Service Vehicles (PSVs) face an annual testing requirement. PSVs more than 12 years old must be tested every six months. For private car owners, the two-yearly cycle differs from the annual MOT obligation that applies in the UK or the equivalent periodic inspection (contrôle technique) in France. MOT tests may be booked online via Gov.gi or at https://dvld.egov.gi/mot/, or in person at the DVLD counter.

The roadworthiness test assesses whether a vehicle meets road safety and environmental standards, and it is an offence to drive a vehicle that has not passed the test. Examiners check brakes, tyres, lighting, steering, emissions, and other safety-critical systems. A passing vehicle receives a roadworthiness certificate; a vehicle that fails will be given details of the defects that must be rectified before a retest can be undertaken.

Insurance renewal: Motor insurance must be kept in force without interruption. Most policies run for twelve months and are renewed through the private insurance market. Maintaining up-to-date records of your no-claims history will help you continue to benefit from any applicable discount at each renewal.

Fuel and parking: Gibraltar’s fuel duty is lower than that levied in neighbouring Spain, making day-to-day running costs comparatively competitive. Parking space within the territory is constrained by its small geographic footprint; residents are advised to familiarise themselves with the local parking permit schemes and restrictions administered by the Gibraltar government.

In summary, the principal recurring commitments for private car owners are the biennial roadworthiness test, the annual road tax, and annual insurance renewal. Always consult the DVLD and HM Customs Gibraltar for up-to-date fees and schedules, as these are reviewed from time to time.

Frequently asked questions

Do I need to be a Gibraltar resident to buy and register a car there?

Yes. To purchase a car in Gibraltar and register it there, the buyer must hold Gibraltar residency. Visitors may buy brand-new vehicles on export plates under specific conditions, but obtaining a permanent local registration is contingent on being a resident. Speak to the DVLD to clarify your individual circumstances before making any purchase.

Is there VAT on vehicles in Gibraltar?

There is no VAT in Gibraltar. Import duty is levied on motor vehicles instead, at rates that depend on the engine type, engine size, and whether the importation is by a dealer or a private individual. Confirm the duty rate applicable to your particular vehicle with HM Customs Gibraltar before proceeding.

Can I drive on my foreign licence after moving to Gibraltar?

Gibraltar recognises many foreign driving licences for an initial period following the establishment of residency. The precise rules depend on the country that issued your licence. Contact the Driver and Vehicle Licensing Department (DVLD) as soon as you arrive to find out how long your foreign licence remains valid and what steps are involved in exchanging it for a Gibraltar one.

How often does my car need an MOT in Gibraltar?

All private motor vehicles — cars and motorcycles — over four years old must undergo a roadworthiness test every two years. This is a less frequent cycle than the annual MOT required in the UK. Tests are booked through the DVLD and conducted at the Motor Vehicle Test Centre on Eastern Beach Road.

Can I bring a right-hand drive car to Gibraltar?

Yes. Both right-hand drive and left-hand drive vehicles are permitted in Gibraltar. However, since Gibraltar drives on the right, using a right-hand drive car can be less practical for everyday use and may reduce its value when you come to sell. There are no legal prohibitions on RHD vehicles, but the car must meet ECWVTA standards and pass the roadworthiness test.

Is there an exemption from import duty for people relocating to Gibraltar?

Gibraltar does not operate a widely available “removal goods” or personal effects exemption for vehicles in the way some other countries do. Import duty typically applies to vehicles brought in by new residents. Contact HM Customs Gibraltar directly to enquire whether any relief might apply to your specific situation, as policies can change over time.

Will my no-claims discount from another country be recognised by Gibraltar insurers?

A significant number of Gibraltar insurers will accept a no-claims certificate issued by a previous insurer in another country and factor it into your premium. Bring a formal no-claims or no-loss letter from your former insurer when requesting quotes. The level of discount granted varies between providers, so comparing several is advisable. The Financial Services Commission (FSC) Gibraltar supervises the insurance industry and is the body to approach with any regulatory concerns.

What happens if I sell my car before the road tax expires?

When selling a vehicle in Gibraltar, you must complete the transfer documentation with the DVLD. Road tax does not carry over automatically to the buyer — they will need to arrange their own vehicle licence once the ownership transfer has been registered. Do not cancel your insurance until you have confirmation that the transfer has been formally processed. Clear any outstanding fines before completing the sale, and verify the current procedure with the DVLD at the time of transaction.