Businesses in Gibraltar have reported a dramatic surge in trade since the removal of the land frontier with Spain.

According to official figures, sales made in euros have risen by more than 240% in the two weeks since the post-Brexit agreement came into force on July 15, compared with the previous fortnight.

Sales were also more than 150% higher than during the same period in 2025.

Because the vast majority of the transactions were made in euros, the government says the figures show a sharp increase in spending by visitors crossing into Gibraltar following the easing of border controls.

The increase in commercial activity has also boosted public finances.

The government estimates it has already collected around £800,000 in transaction taxes, alongside a further £975,000 in import duties on goods brought into Gibraltar since the treaty took effect.

Officials believe the figures could improve further over the coming weeks.

Before the agreement came into force, many businesses stockpiled goods to take advantage of the previous customs arrangements, meaning deliveries into Gibraltar have temporarily fallen to around two-thirds of their normal level.

The government expects imports to rise again during August and September as retailers replenish their inventories.

Chief Minister Fabian Picardo described the figures as ‘extremely encouraging early indicators’ of the agreement’s positive impact on Gibraltar’s economy.

He said local businesses were consistently reporting more visitors and increased spending in shops, restaurants and other businesses.

While acknowledging it is still too early to draw definitive conclusions, Picardo said the early signs were ‘extremely positive’ and predicted that tax revenues would continue to increase as initial operational issues are resolved and businesses restock over the coming weeks.