Key Takeaways:
- Spanish border guards will conduct Schengen checks in Gibraltar from April 2025.
- The deal creates a fluid land border, avoiding disruptive new EU biometric controls.
- British passport holders will need to provide fingerprints to Spanish officials at Gibraltar airport.
- Gibraltar enters a bespoke customs union with the EU, aligning import duties with Spain.
- The agreement aims to remove the border fence, dubbed "the last wall in continental Europe."
A Unique Solution for a Post-Brexit Frontier
Nearly a decade after the Brexit vote cast its future into doubt, Gibraltar has secured a novel status. The UK and EU have agreed on a treaty that will allow Spanish border guards to operate on British territory, performing a "second line" of Schengen zone controls. This arrangement is designed to create an open land border with Spain while keeping Gibraltar outside the Schengen Area itself.
The system is set to begin provisional application from 10 April 2025, coinciding with the full launch of the EU's Entry/Exit System (EES). Without this deal, the automated biometric checks would have been applied directly at the Gibraltar-Spain frontier, which the UK government warned would "devastate" the territory's economy.
How the New Border Will Work
The treaty establishes a two-tier process for travelers entering Gibraltar:
- Initial immigration checks will be conducted by Gibraltar officials.
- Subsequently, Spanish authorities will carry out Schengen border controls.
This model is likened to the juxtaposed controls at London's St Pancras station for Eurostar services. Crucially, Spanish officers will have powers to arrest, search, and interview travelers "where it is justified in the course of border control."
For travelers, key changes include:
- British nationals must provide fingerprints to Spanish border officials upon arrival at Gibraltar airport.
- The EU's Entry/Exit System (EES) will apply to all non-EU nationals entering the territory, registering fingerprints and a facial image.
Economic Integration and Daily Life
The treaty's ultimate goal is the removal of 'La Verja'—the 1.2km fence that has marked the border since 1909. Spanish Foreign Minister José Manuel Albares hailed this as the disappearance of "the last wall in continental Europe."
For Gibraltar's 16,000 daily cross-border workers and its tourism-dependent economy, fluidity is essential. In 2024, British nationals accounted for 86.5% of all departures from Gibraltar airport.
Customs and Tax Alignment
Beyond border checks, the deal integrates Gibraltar deeper into the EU's economic sphere:
- Gibraltar will join a bespoke customs union with the EU, aligning its import duties with those applied by Spain.
- Most goods destined for Gibraltar will be cleared by EU customs offices in Spain, avoiding checks at the land border.
- While keeping its zero-VAT regime, Gibraltar will introduce a new "transaction tax" on goods imported or made for sale locally, starting at 15% and rising to 17% by 2028.
Chief Minister Fabian Picardo acknowledged some products "might become a little more expensive" but argued the overall agreement would increase traffic to the territory's shops by providing certainty.
Political Context and Next Steps
This treaty implements a political deal agreed in June 2023 and has been described as the "last piece of the EU exit jigsaw," as Gibraltar was not covered by the UK's 2021 trade deal with the bloc.
The UK Foreign Office framed it as evidence of a "new era of co-operation" with the EU under the Labour government. However, Conservative critics have called for "proper scrutiny," questioning how "operational overreach" by Spanish police will be prevented.
The draft treaty must now be ratified by both the UK and European Parliaments. As part of the agreement, the UK and EU will make financial contributions to a fund promoting "training and employment" in the Spanish regions surrounding Gibraltar, fostering cross-border stability.