Avoiding Self-Employed Set-Up Mistakes in Gibraltar: What to Know as Frontier Agreements Looms

With the UK, EU, Spain and Gibraltar recently announcing in June 2025 that they had agreed the core aspects of a future treaty, the landscape for doing business in Gibraltar may soon look very different. The agreement is set to remove border checks between Spain and Gibraltar, while introducing Schengen-style controls at Gibraltar's airport and port. It also covers areas such as taxation, frontier workers' rights, and cooperation between customs and law enforcement. Although the final arrangements are still being worked out, these developments could bring major opportunities. For self-employed people, the changes may mean easier access to markets, smoother logistics, and potentially greater stability for Gibraltar's business
environment.

That said, the details are not yet fully settled, and entrepreneurs should approach with a degree of caution. What is certain is that Gibraltar will remain an attractive base for business thanks to its strategic location, favorable tax regime, and English-speaking legal system.

Against this backdrop of change, it's more important than ever to get the basics right when registering as self-employed. Many people still fall into avoidable traps during set-up. This guide highlights the common mistakes self-employed people make in Gibraltar, and how to avoid them.

1. Not Registering Properly with the Right Authorities

One of the most common errors is assuming that registering a business name is enough. In Gibraltar, self-employed individuals must also register with the Employment Department and Income Tax Office. Missing a step can lead to fines or an inability to operate legally.

How to avoid it: Work with an advisor like TAG Consultancy, who will ensure your registrations are complete and compliant from day one. This will in turn save you time in issues with applications, and back and forth with the relevant authorities.

2. Mixing Personal and Business Finances

Many sole traders operate from their personal bank account, which makes bookkeeping and tax reporting difficult. This can also raise questions with tax authorities. 

How to avoid it: Open a dedicated business bank account as soon as you register. This separates your finances and simplifies accounting. TAG Consultancy as an affiliated partner of Revolut Business can facilitate the opening of Revolut Business accounts for companies based in Gibraltar, offering simpler and seamless, end-to-end service for new and existing businesses.

3. Poor Record-Keeping

It's easy to underestimate the importance of accurate bookkeeping when starting out. Incomplete records can cause problems at tax filing time and may even result in penalties.

How to avoid it: Keep clear records of income, expenses, invoices, and receipts. TAG Consultancy can also connect you with professional bookkeeping support to stay compliant.

4. Ignoring Social Insurance Contributions

Self-employed persons in Gibraltar are required to contribute to social insurance. Many overlook this, only to be caught out later with unexpected back payments. 

How to avoid it: Understand your monthly obligations from the outset and ensure you're registered with the Income Tax Office.

5. Underestimating Timelines and Costs

Some new entrepreneurs expect to be fully operational within days. In reality, opening bank accounts, securing certificates and licences can take over a month. 

How to avoid it: Plan ahead with realistic timelines and budget for all associated fees, from registration to insurance.

6. Not Seeking Professional Advice Early Enough

Many self-employed people try to "do it all themselves" but run into challenges they didn't anticipate. Correcting mistakes often costs more time and money than getting expert advice upfront. 

How to avoid it: Take advantage of TAG Consultancy's free 30-minute consultation to understand the full process and establish the most efficient plan of action.

Self-Employed Set-Up Made Simple with TAG Consultancy

At TAG Consultancy, we specialise in both company formation and self-employed registrations. Our team manages the entire process for you, from registration and compliance, to banking and ongoing obligations. This ensures you avoid the common mistakes outlined above and can focus on running your business with peace of mind.

Contact us today through our online form to book your free consultation and speak to a member of our team of experts to find out how best to coordinate the future of your business.