Gibraltar is well known for cheaper cigarettes, but the laws are generally not known. It is an offence in Gibraltar to be in possesion of more than ten cartons of cigarettes (2000 cigarettes) also when importing these back to Spain or UK your free allowance is only one carton (200 cigarettes) per adult. This is because Gibraltar does not belong to the EU Customs area hence VAT is not applicable in Gibraltar.
Spaniards go shopping in Gibraltar to take advantage of cheaper prices on many things-cigarettes, booze, something as basic as sugar. Do not carry anything for anyone, don't buy except for yourself,,,,border guards seem to have a sixth sense about this sort of thing.
When i was walking out of the border, a lady approached me who spoke no English.Strangely she had with her a board written in English, it simply stated "My name is ............. please bring these ciggarattes into Spain for me,I would do it but the police dont like me very much, its a trap dont do it!!!