Gibraltar shops report sales rocketing more than 240% weeks after border fence comes down

Shopkeepers on the Rock are grinning from ear to ear after the first fortnight without frontier queues. Gibraltar’s government has just released early figures showing euro sales at some businesses up more than 240 per cent compared with the two weeks before July 15, and over 150 per cent higher than the same stretch in 2025. Most of those extra tills are ringing in euros, pointing straight at day-trippers and workers pouring in from Spain now that the old Verja controls have gone.

Chief Minister Fabian Picardo called the numbers “very encouraging”. Traders, he said, are telling him straight that more visitors are turning up and, crucially, opening their wallets in shops, restaurants and bars. “They’re spending money in our businesses,” he said, while cautioning it is still early days for a full verdict. The government reckons the jump already delivered around £800,000 in transaction tax and £975,000 in import duties on goods brought in since the treaty kicked in.

Stockpiles mean even bigger numbers ahead

Plenty of retailers stocked up before the new rules arrived so they could ride out the old tariff set-up a bit longer. That explains why fewer lorries have been rolling across lately. Once shelves need restocking through August and September, officials expect the tax take to climb further. The new transaction tax replaces the old import duty system and sits at 15 per cent for now, heading towards 17 per cent, though essential goods keep lower or zero rates.

This early bounce fits the wider picture that has been building since the UK-EU treaty text landed earlier this year. Readers can catch the full rundown in our earlier piece on the Gibraltar treaty text finally revealed. Fluid movement of people and goods was always the big promise, and the first numbers suggest footfall is delivering.

Main street adapts while new faces arrive

Traditional duty-free style shopping faces a tougher ride under the new tax regime, especially for tobacco and alcohol. Yet Main Street is already changing shape. Spanish chain Rodilla has opened, Starbucks has plans for branches, Häagen-Dazs is trading in Casemates, and MANGO has expanded its presence. Medical clinics and dental practices from the Spanish side have taken space too. Local estate agents report interest from high-value residents who now spend more time and cash on the Rock.

Across the old line in La Linea, a €15 million shopping and leisure complex at Alcaidesa Marina is racing towards a summer opening. Aldi, a big gym and roughly 20-25 other units are lined up, promising 300 to 400 jobs for the Spanish side that will also serve the cross-border traffic. Town-centre upgrades on the Gibraltar side, including work around Casemates Square and Chatham Counterguard, hope to polish the visitor experience just as more people start flowing through.

Jobs and bigger projects on the horizon

Construction crews will soon be busy on a major data-centre project near the port. Pelagos Data Centres is pouring in £1.8 billion over the coming years for up to 250 megawatts of capacity, creating hundreds of temporary jobs and around 100 permanent roles once it is running. A new games studio backed by Casino Admiral is hiring for digital art, animation, software and AI positions. Finance, gaming and professional services still look well placed to benefit from easier travel and clearer rules.

Roughly 15,000 people cross every day for work, most of them Spanish, and they form a huge chunk of Gibraltar’s labour force. Easier commuting keeps that flow steady and may even grow it. Unemployment among Gibraltarians remains tiny, with employee jobs already at record levels after years of steady growth.

Shared prosperity still the goal

Picardo keeps stressing the treaty was designed for shared gains on both sides of what used to be a hard frontier. Early tax receipts and the sales jump give the first concrete signs that visitors from Spain are making the short trip and spending. Stock replenishment later this summer should push the figures higher still. For the full official take on the frontier changes, the BBC’s report on the new era for Gibraltar sets out the practical details clearly, while the Gibraltar government press release on the historic day captures the local mood.

Shops will keep evolving, some older models may feel the pinch, and new franchises and tech projects will fill gaps. For now the tills are busier, the streets feel livelier, and the first hard numbers since the fence came down are giving traders something to smile about.