Key facts
- Gibraltar and Spain will remove their 118-year-old border controls on July 15.
- This is part of a negotiated agreement between the European Union and the UK following Brexit.
- The new arrangements align Gibraltar with the EU customs union and the Schengen European free travel zone.
- Passport checks will be conducted by Gibraltarian and Spanish officials at the territory's airport and port.
- A new transaction tax is being introduced in Gibraltar, replacing import duty, starting at 15% this year.
Gibraltar is set to enter a new era with the scheduled removal of its 118-year-old border controls with Spain on July 15. This significant development is part of a carefully negotiated agreement between the European Union and the UK following the UK's departure from the EU.
The removal of border controls is expected to facilitate freedom of movement for the approximately 15,000 Spaniards who commute daily to work in Gibraltar, a British Overseas Territory with around 40,000 inhabitants. Currently, these crossings can lead to long queues during rush hours.
Shilpi Chotrani, a daily commuter, expressed her eagerness for the change, stating, "The fact that there is a border between us is ridiculous." The mayor of La Línea de la Concepción, Juan Franco, highlighted the economic dependence of his town on Gibraltar, noting that "a third of its income is from clients in Gibraltar." He believes the solution to Brexit will have a positive economic effect.
Gibraltarians, who overwhelmingly voted to remain in the EU, had concerns about Spanish sovereignty claims and the logistical challenges of Brexit. The new arrangement aligns Gibraltar with the EU customs union and the Schengen European free travel zone. Travelers will need to show passports to officials at Gibraltar's airport and port.
Chief Minister Fabian Picardo described the agreement as introducing "complete and utter fluidity of people and goods" and anticipates an increase in visitor arrivals. Spain's foreign minister, José Manuel Albares, also spoke of "a new era" for the territory.
However, the deal also brings changes for businesses. Goods sold in Gibraltar must now comply with EU regulations, and a new transaction tax is replacing import duty, starting at 15% and eventually rising to 17%. John Isola, managing director of Anglo Hispano Company, sees the arrangement as a "good compromise" but acknowledges potential impacts on competitiveness due to new regulations and tax regimes.
In preparation for the July 15 implementation, the border fence has been systematically dismantled.