Gibraltar offers 50% green deduction up to £10,000 for companies

Companies and other non-individuals in Gibraltar can claim a 50% deduction for certified net-zero expenditure under the Green (Tax Deductions) Rules 2026GibraltarlawsGibraltarlaws. The Rules, made by the Minister under section 25 of the Income Tax Act 2010Gibraltarlaws, are deemed to have come into operation on 1 July 2024Gibraltarlaws, so qualifying spending since that date falls within the new reliefGibraltarlaws.

The deduction is available to a person who is not an individualGibraltarlaws and is taken in computing income chargeable to tax. Two conditions must both be met: the person has incurred expenditure on goods, services or works that contribute towards the net zero objective, defined as the reduction or elimination of greenhouse gasesGibraltarlaws, and the person holds a certification letter issued by the Department of the EnvironmentGibraltarlaws. The claimable amount is limited to 50% of the expenditure the Commissioner is satisfied was incurred in contributing to the net zero objectiveGibraltarlaws, subject to a ceiling of £10,000 per claimGibraltarlaws.

Certification is the gateway. No deduction is permitted unless the claim is accompanied by a certification letterGibraltarlaws in which the Department of the Environment confirms that the expenditure was made and that it is directly associated with achieving the net zero objectiveGibraltarlaws. The Department may only issue the letter where it is satisfied on the evidence of qualifying expenditure, and it may demand whatever information it considers necessary before issuing it. The Schedule to the Rules gives an indicative list of eligible goods, services and works, including carbon literacy training, green roofs, smart building systems, building insulation, high-CO2-removal planting, solar panels, energy performance and energy-efficient items, electric vehicles and charging stations, sustainability consulting and ESG reporting services, with exclusions including installation costs.

There is no double counting. Any deduction allowed under the Rules must be reduced by any deduction, relief or allowance available for the same expenditure under any other provision of the Income Tax Act 2010 or its subsidiary legislationGibraltarlaws. Claims must be made in writing to the CommissionerGibraltarlaws within two years of the end of the year of assessment or accounting period to which the deduction relatesGibraltarlaws, and also within six months of the issue of the certification letterGibraltarlaws, so both time limits have to be metGibraltarlaws.

In practice certification comes before filing: each item is checked against the Schedule and the direct-association test, any other relief on the same spend is netted off, and both the two-year and the six-month claim windows must be met.

Legal basis is section 25 of the Income Tax Act 2010, with retrospective commencement permitted by section 27, implemented through rules 2 and 4 to 7 of the Green (Tax Deductions) Rules 2026 (LN.2026/377).