By David Revagliatte

Over the past two years, we must have written more words about the Treaty than almost any other subject.

Through the Thrive EDIT, we’ve tried to cut through the politics and focus on what really matters to Gibraltar’s business community. We’ve unpacked customs guidance, explained residency proposals, questioned support measures, covered Government announcements, highlighted members’ concerns and, where necessary, asked awkward questions on your behalf. The aim has always been the same: to make one of the biggest economic changes in Gibraltar’s history feel just a little easier to understand.

On 15 July, after years of negotiations and months of increasingly detailed planning, Gibraltar entered its new relationship with the European Union. It was, in every sense, a momentous day. There was ceremony, symbolism and genuine emotion on both sides of the frontier as the physical barrier that has shaped generations of Gibraltarians began to disappear. Whatever your views on the Treaty itself, few would argue that we witnessed a historic moment.

However historical the moment, we must quickly shift to the operational details. The new frontier arrangements were only one part of an exceptionally busy week. Transaction Tax officially replaced Import Duty. The new Residency Regulations came into force. New travel arrangements began. The minimum wage increased. Government announced a Transaction Tax Transition Support Scheme, confirmed further rates relief and rent support, and launched new initiatives to promote Gibraltar internationally.

Taken individually, each of those announcements would have dominated the headlines. Together, they represent one of the most significant weeks Gibraltar’s business community has experienced in decades.

As always, the detail matters.

A 15% Transaction Tax does not automatically translate into a 15% price increase. The impact depends on the products you sell, your previous Import Duty position, your suppliers, your stock levels and whether additional costs can realistically be absorbed. The same applies to residency. The publication of the Regulations provides much greater clarity than the earlier proposals, but businesses will still be working through the practical implications over the weeks ahead.

Government support is also beginning to take shape. The Minister for Business confirmed a Transaction Tax Transition Support Scheme for businesses that can show they are materially worse off under Transaction Tax than they would have been under the former Import Duty regime during the first year of application. The assessment will take place retrospectively after the first 90 days, with further guidance due in the next month. She also said measures relating to rates relief would be extended to the restaurant sector in the same way as retail, with regulations on rates relief and the rent increase moratorium due to be published in the next fortnight.

This is important because the pressure will not be felt evenly. Retailers, wholesalers, importers, restaurants and hospitality businesses are likely to be watching the detail particularly closely. At the same time, the Minister made clear that businesses applying for support will need to be up to date with PAYE, social insurance, corporate tax and filing requirements. She also said some sectors, including supermarkets, tobacco, wine, spirits, fuel and vehicle retailers, would not be eligible for the schemes referred to in that section of her Budget address.

One of the more encouraging developments has been the increasing flow of information. It would be unfair not to recognise the considerable effort made by ministers, HM Customs and officials in recent weeks to publish guidance, answer questions and engage directly with businesses through Town Hall meetings and technical briefings. There is still work to do, and businesses will rightly continue asking questions, but the picture today is considerably clearer than it was even a month ago.

The very significant difficulties experienced at the commercial frontier this week demonstrate that there is still a lot of work and learning to be done..

So, what now?

For years, our questions to Gibraltar’s political and business leaders were, Will there be a Treaty? What might it look like? What could happen?

This week, those questions are: Y ahora que? What do we do now? Where are the opportunities?

That, ultimately, is where Thrive EDIT will continue to focus. Both myself and The GFSB will keep explaining the guidance. We’ll keep challenging where clarification is needed. We’ll continue amplifying the concerns of Gibraltar’s business community and, just as importantly, highlighting the opportunities that emerge.

Because although the negotiations may be over, the real work has only just started. And if this week has taught us anything, it’s that Gibraltar will continue doing what it has always done best: adapt, innovate and get on with business.