If you are visiting or moving to Gibraltar, understanding the local currency is essential. Gibraltar has its own currency - the Gibraltar pound (GIP) - which is pegged at a fixed 1:1 rate with the British pound sterling (GBP). While UK pounds are accepted everywhere in Gibraltar, there are some important nuances to be aware of.
The Gibraltar Pound (GIP)
The Government of Gibraltar issues its own banknotes and coins under the Currency Notes Act. Gibraltar pound notes come in denominations of £5, £10, £20, £50, and £100, while coins include 1p, 2p, 5p, 10p, 20p, 50p, £1, £2, and £5. The notes feature distinctive designs including the Rock of Gibraltar, the Moorish Castle, and local wildlife. Gibraltar coins are the same size and weight as their UK equivalents. Interested in this topic? Read our population of gibraltar: demographics, growth & diversity overview.
The Gibraltar pound is not a separate freely-traded currency - it is backed by and pegged to the British pound at a fixed 1:1 exchange rate. This means that 1 GIP always equals 1 GBP.
Using UK Pounds in Gibraltar
British pounds sterling - both notes and coins - are accepted everywhere in Gibraltar. You will receive change in a mixture of UK and Gibraltar currency. For practical purposes, the two are completely interchangeable within the territory. There is no need to exchange your UK pounds before visiting.
Using Gibraltar Pounds Outside Gibraltar
This is where visitors need to be careful: Gibraltar pound notes and coins are not legal tender in the United Kingdom or anywhere else outside Gibraltar. While some UK shops and banks may accept them as a courtesy, they are under no obligation to do so. It is advisable to spend your Gibraltar currency before leaving or exchange it at a local bank. UK banks may exchange Gibraltar notes but often charge a fee or offer a less favourable rate.
Euros in Gibraltar
Although Gibraltar is adjacent to Spain (a eurozone country), the euro is not the official currency. However, many shops, restaurants, and attractions in tourist areas accept euros as a convenience, typically at a rate slightly less favourable than the official exchange rate. Change will usually be given in pounds (GIP or GBP). For the best value, it is recommended to pay in pounds rather than euros while in Gibraltar. We cover this further in our is gibraltar a country? everything you need to know article.
ATMs and Cards
Gibraltar has numerous ATMs throughout the town centre, at the airport, and in shopping areas. Most ATMs dispense Gibraltar pounds, though some also offer UK pounds. Credit and debit cards - including Visa, Mastercard, and contactless payments - are widely accepted. Many shops also accept Apple Pay and Google Pay.
When using a UK-issued card, there are generally no foreign transaction fees since Gibraltar uses GBP-pegged currency. However, if your bank treats Gibraltar as "overseas," a small fee may apply - it is worth checking with your card issuer before travel.
Currency Exchange
There are several currency exchange bureaux in the town centre and at the border area. Banks in Gibraltar include NatWest International, Barclays, Jyske Bank, Trusted Novus Bank, and Gibintbank. Exchange rates for EUR to GBP are generally competitive. If you are arriving from Spain with euros, you can exchange them at the border area or in town, but paying by card is usually the best option.
Tax-Free Shopping
Gibraltar is outside the EU VAT area, which means there is no Value Added Tax (VAT) on goods. This makes Gibraltar an attractive shopping destination, particularly for items like electronics, alcohol, tobacco, perfume, and jewellery. However, if you are returning to an EU country (such as Spain), you may be subject to customs allowances and duties on goods over certain thresholds.
Tipping in Gibraltar
Tipping is not obligatory in Gibraltar, but it is appreciated for good service. A tip of 10% in restaurants is standard for table service. In bars and cafes, rounding up or leaving small change is common. Taxi drivers do not expect a tip but will appreciate one for good service.