The Government has replied to the GSD's recent comments regarding the OFT property sale figures.

A statement from the Government follows below:

The Opposition’s recent commentary on OFT property sale figures (through spokesman Mr Sacarello MP) rests on a very basic error of fact. 

Timing matters. The property tax measure (relating to significant holdings and the sale of multiple properties) only came into effect on the 1st January 2025, meaning the OFT reporting period predates it. Attributing the fall in property transactions to the tax is not just fundamentally flawed, it is not the kind of mistake you expect a Member of Parliament to make, even if it is not the first time. 

The logic also cuts the other way. Because the measure was signalled in the 2024 Budget on 3rd July 2024, anyone minded to avoid the tax had a window of 6 months to sell before 1st January 2025. If the Opposition’s argument were correct, one would expect a surge in property transactions ahead of the tax date, not a fall. 

What is more, Mr Sacarello’s narrative is contradicted by industry experts quoted extensively in the media* who have pointed to a post-Covid correction, treaty/Brexit uncertainty, higher interest rates and oversupply from off-plan developments as the drivers of the slowdown. 

Minister for Justice, Trade and Industry, Nigel Feetham KC MP, said: “Ignoring both the timeline and the real reasons for the fall in property transactions is not scrutiny of Government policy; itis a sloppy assertion. 

“We welcome robust debate. But Gibraltar deserves better than claims that don’t survive a basic fact-check. 

“What also escapes Mr Sacarello is that property experts indicate prices are coming down by around 25% and that is good news for local buyers who were previously priced out by speculative activity. Instead of welcoming this, the GSD clings to a false narrative. This is desperate politics.”