Gibraltar

Gibraltar demonstrates how a 6.7 square kilometer territory can build a diversified services economy at a strategic chokepoint. The economy consists largely of services across four pillars: financial services, gaming, tourism, and shipping. Online betting and gaming accounts for approximately 30% of GDP, employs over 3,400 people, and generates around one-third of tax receipts. GDP is forecast to grow 6.5% in 2025, reaching £3.1 billion.

The new Gambling Act 2025 represents regulatory modernization for the post-Brexit landscape, replacing the 2005 framework. However, UK budget increases in remote gaming duty from 21% to 40% (effective April 2026) and online betting tax from 15% to 25% (effective April 2027) threaten this pillar. Diversification efforts include a 250-megawatt AI data centre, the largest single investment project in Gibraltar's history, creating 500 construction jobs and 100 permanent positions.

The Brexit agreement finalized December 12, 2025 includes dual Gibraltar-Schengen border checks but requires ratification by all 27 EU parliaments, the European Parliament, and UK Parliament. Gibraltar's port remains vital, handling approximately 60,000 strait transits annually and serving as one of the Mediterranean's largest bunkering ports, though Algeciras competition reduced volumes from 4.3 million to 3.4 million tonnes.