The Gibraltar-EU Treaty: New Era for the Border – Explore the latest updates and legal details on the 2026 Gibraltar Treaty. Stay informed about the removal of the frontier, Schengen integration, and the new economic framework between the UK, Spain, and the European Union.

A Treaty for Gibraltar’s Future

What the Treaty Means for Gibraltar Sovereignty Stability Security Prosperity

A UK–EU treaty securing border fluidity, economic stability and full protection of British sovereignty.

UK-EU Agreement in respect of Gibraltar

TREATY SUMMARY

OVERVIEW

1. The United Kingdom (the “UK”) and the European Union (the “EU”) have negotiated a landmark treaty (the “Agreement”) that secures a secure, stable and enduring relationship between the EU and Gibraltar. The Government of Gibraltar has formed an integral part of the UK’s negotiating team at every stage of these negotiations and has given its full support to this Agreement.

2. Following the UK’s departure from the EU, Gibraltar was not covered by the UK‑EU Trade and Cooperation Agreement, leaving residents and businesses facing an uncertain future. Gibraltar’s unique geographic and economic position meant that a bespoke arrangement was needed – one that would enable the thousands who cross the Gibraltar-Spain land border each day to continue to do so.

3. This new Agreement provides a practical and lasting solution. It ensures a fluid border for people and goods between Gibraltar and the EU; strengthens cooperation with the EU and Spain and protects British sovereignty – including the operational autonomy of the UK’s military base.

4. Throughout the negotiations, this Government has been steadfastly committed to the ‘double lock’: the UK will never enter into arrangements under which the people of Gibraltar would pass under the sovereignty of another State against their freely and democratically expressed wishes. And we will never enter into a process of sovereignty negotiations with which Gibraltar is not content. The Agreement makes absolutely clear that nothing in the Agreement or any supplementing arrangements shall affect sovereignty

5. The UK and EU are working together to ensure the Treaty can be brought into effect as soon as possible and provide certainty for the people and economy of Gibraltar. In this context we are publishing the draft Treaty alongside the EU while legal teams complete the final legal review and translation of the text. This is to ensure that all the Parliaments with an interest have access to it on the same timeline. The final version of the Treaty will be laid in the UK Parliament for scrutiny before ratification in accordance with the Constitutional Reform and Governance Act 2010.

6. The Government will continue to work closely with the Government of Gibraltar, the EU and Spain as we advance towards the signature, ratification and implementation of this Treaty.

PART ONE — Common and Institutional Provisions

7. Part One of the Agreement defines the overall purpose of establishing a mutually cooperative relationship between Gibraltar and the EU that promotes shared prosperity for Gibraltar and the surrounding region in Spain. It recognises shared values on the principles of democracy, the rule of law, and respect for human rights, as well as commitment to fight against climate change and cooperate on counterterrorism.

8. Article 2 of the Agreement makes clear that nothing in the Agreement or any supplementing arrangements shall affect sovereignty.

9. There is no direct application of EU law to Gibraltar through the Agreement or enforcement role for the Court of Justice of the European Union in Gibraltar. Part One contains provisions confirming how Gibraltar’s domestic legal system will incorporate EU law where alignment is required and confirms it will be enforced by Gibraltar’s own authorities and courts.

10. This Part also contains provisions covering the protection of personal data to enable the necessary free flow of personal data between Gibraltar and the EU to make the provisions of the Treaty operationally viable, without the need for a data ‘adequacy’ decision for Gibraltar, in return for Gibraltar’s continued alignment with key EU data protection rules.

11. In addition, the Agreement creates the governance structures needed to manage and oversee cooperation. It establishes a Cooperation Council, supported by three Specialised Committees, to supervise implementation, facilitate dialogue, and adopt decisions where the Agreement provides for them.

PART TWO — Circulation of Persons

12. The Agreement establishes a new system for the movement of persons, designed to remove all routine immigration checks and physical barriers at the land border while maintaining stability and security across Gibraltar and the Schengen Area. Gibraltar will remain outside both Schengen and the EU, but Schengen border rules will apply at its external border under a tailored arrangement between the UK and EU. The Agreement provides that all necessary immigration checks will take place at Gibraltar’s airport – and if needed, the port – rather than at the land border. This will ensure that people cleared at the airport will be able to travel freely between Gibraltar, Spain and the wider Schengen Area, meaning an end to often lengthy queues for business, workers and visitors crossing the land border. Separate arrangements in this Part ensure that relevant military personnel are exempt from Schengen border checks.

13. The operation of border crossing points, the sequencing of checks by Gibraltar and Spain, the use of automated systems, and the arrangements for second-line checks are also further defined.

14. The Agreement includes provisions on visa-free travel, residence rights for persons resident in Gibraltar, and coordinated procedures for the approval of new or renewed residence permits. These provisions allow the relevant authorities in Spain to ensure residence permits that will allow access to the Schengen area are granted in line with key provisions of EU law designed to protect public safety and security.

15. In the area of security and cooperation the Agreement provides for enhanced law enforcement cooperation to address shared threats, based on arrangements agreed between the UK and the EU in the TCA and expanded where needed.

16. The Agreement also creates mechanisms for evaluation, monitoring and, where required, temporary suspension of obligations in cases of serious non-compliance or security threats.

PART THREE — Economy and Trade

17. Part Three of the Agreement establishes a comprehensive framework for economic and trade cooperation that supports open and fair competition, sustainable development and fluid movement of goods across the land border as well as containing important provisions on transport.

18. The Agreement establishes a bespoke customs model between Gibraltar and the EU, removing tariffs, duties and quotas on goods moving between them. It delivers enhancements to Gibraltar’s existing indirect taxation system that brings certain rates closer to those in the EU, without adopting VAT or any form of sales tax. To achieve fluid movement across the border operationally, the majority of goods destined for Gibraltar will be cleared by EU customs offices in Spain so they can enter Gibraltar without further checks. Separate bespoke arrangements in this Part ensure the continued movement of military goods to Gibraltar.

19. The Agreement also includes provisions on labour standards, taxation and sustainability, environmental protection, climate commitments and state aid control. Under this framework, Gibraltar will maintain high standards, for example, by establishing an independent state aid regime, while maintaining regulatory flexibility. In addition, the Agreement contains an aviation chapter that will provide new economic opportunities for the region by enabling flights between Gibraltar and the EU, which have, for the most part, been suspended for decades. A joint venture company will be established between Gibraltar and Spain to oversee commercial operations at the civilian airport and Gibraltar will incorporate a small number of EU civil aviation rules into its domestic regime. The RAF base at the airfield is not in scope of the Agreement.

20. In addition to aviation, there are chapters covering maritime and road transport services between Gibraltar and the EU.

PART FOUR — Frontier Workers

21. The Agreement defines the rights of workers who live in one territory and work in the other, ensuring they continue to benefit from clarity, certainty and fair treatment. It provides mechanisms for social security coordination so that contributions, entitlements and benefits can be administered without disruption.

22. These provisions mean that cross-border workers enjoy a secure framework for employment, supporting the integrated labour market between Gibraltar and the surrounding region.

PART FIVE — Financial Provisions

23. The Agreement establishes a financial mechanism to promote cohesion between Gibraltar and the surrounding region. The Parties will contribute to this mechanism by funding initiatives such as education and training.

PART SIX — Dispute Settlement

24. The Agreement provides a mechanism for resolving disputes, including a process of consultations between the Parties and referral to an independent arbitration tribunal. It also includes provisions on compliance and proportionate remedies in case there is non-compliance.

PART SEVEN — Final Provisions

25. This Part sets out the necessary legal and administrative provisions for the Agreement’s operation, including rules on procedures for review, entry into force and termination. The territorial scope of the Agreement makes clear that it applies to the territory of Gibraltar, and not the wider UK.

ANNEXES

26. There are a range of Annexes, Appendices and Protocols to the Agreement, numbering 43 in total. These supplement the main chapters of the Agreement with further detail regarding how they will function in practice.

UK-EU Read the Treaty

FULL TREATY TEXT

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FAQs: Movement of People

Clear answers to the most common questions about the UK–EU Treaty in respect of Gibraltar.

None. There will be no immigration controls carried out on people moving by land between Gibraltar and Spain. This is one of the main purposes of the treaty. The experience of crossing by land between Gibraltar and Spain will feel like the experience of crossing by land between Schengen States. Persons who are legally in Schengen, like Gibraltar residents, will not need to show their passports; they will not be checked for immigration purposes. Persons who are legally residing in Schengen and Gibraltar will be able to circulate freely.

The model for the circulation of persons agreed upon is the model that delivers maximum fluidity for movements by land – the issue of fluidity for movements by land being the single issue of greatest socio-economic concern to Gibraltar stemming from the United Kingdom’s decision to leave the European Union. These arrangements will support Gibraltar’s future economic prosperity and enhance the quality of life of persons resident in Gibraltar. Without these arrangements, and in view of Schengen’s moves towards the tightening of controls at its external borders, through systems such as the soon to be fully implemented Entry/Exit System, not only was Gibraltar’s current, successful economic model at risk, so too was our established way of life.

The system of dual cumulative checks at Gibraltar’s external borders is what allows for the elimination of controls on the movements by land and ensures that Gibraltar retains its status as a separate, British, immigration jurisdiction. Therefore, the controls currently performed by the Spanish authorities at the land border on behalf of the Schengen Area, and the controls currently performed by the Gibraltar authorities at the land border to enforce Gibraltar’s immigrations laws, are moved from the land border to Gibraltar’s external borders in a way which delivers equivalent protection for both Gibraltar and the Schengen Area.

Under the new regime, persons arriving at Gibraltar airport will undergo both Gibraltar entry immigration controls performed by the Gibraltar authorities and Schengen entry immigration controls performed by the Spanish authorities as the authorities of the neighbouring Schengen State. And both sets of controls will need to be satisfied in order to enter Gibraltar and the Schengen Area.

With respect to Schengen entry conditions, these include the conditions set out in the Schengen Borders Code with respect to non-resident third-country nationals (which would include British citizens who are neither Gibraltarian nor legally resident in Gibraltar). They include requirements with respect to the validity of travel documents, requirements to not have been in Gibraltar or the Schengen Area for more than 90 days in any 180-day period, requirements with respect to visas for visa-requiring third country nationals, conditions with respect to justifying the purposes of the intended stay in Gibraltar or the Schengen Area and requirements with respect to the application of Schengen’s Entry Exit System (the “EES”) and the eventual application of the European Travel Information and Authorisation System (“ETIAS”).

Gibraltarians and persons legally resident in Gibraltar are subject to a special regime when it comes to satisfying those Schengen entry conditions (see response to question 5 below) which is essentially satisfied by production of a Gibraltar identity card or Gibraltar civilian registration card.

Gibraltar identity card holders and residents of Gibraltar who are holders of either blue, magenta or green civilian registration cards will benefit from these facilitations.

Yes. Persons who have been issued with a Gibraltar identity card but are not resident in Gibraltar will benefit from these rules to the same extent as Gibraltar identity card holders residing in Gibraltar.

Such persons will be able to circulate freely within the Schengen Area for periods of 90 days in any 180 days. They will not be subject to any visa requirement for doing so and time spent in Gibraltar will not count towards any entitlement to being in the Schengen Area during the stated period.

Moreover, a series of special exemptions will apply to such persons.

- They will not be required to have their passports stamped and they will not be subject to requirements under the soon to be fully implemented Schengen Entry/Exit System (the EES).

- Neither will they be subject to requirements under the new European Travel Information and Authorisation Scheme (ETIAS).

- They will not be required to justify the purpose and conditions of the intended stay in Gibraltar or meet requirements with respect to having sufficient subsistence.

- And, importantly, the Spanish authorities carrying out controls on behalf of the Schengen Area, will not be able to refuse entry to Gibraltar to a holder of a Gibraltar identity card or to a person who is legally resident in Gibraltar who holds either a blue, magenta or green civilian registration card.

Save for the clarification made below, these benefits will apply at all external borders of the Schengen Area. So, for example, if you take the Eurostar from London to Paris, or if you fly from New York to Berlin or from Malaga to Dubai, this is the regime that the Schengen authorities will apply to you at those external borders.

The only difference will be that if you intend to travel to Gibraltar via a Schengen external border other than Gibraltar airport (i.e. you intend to land in Faro in order to transit to Gibraltar) you will not be allowed entry to do so via that Member State if your name is on the national list of alerts of the Member State whose external borders you are seeking to cross and the alert is accompanied by instructions to refuse entry or transit.

But, as stated in the response to question 5, holders of a Gibraltar identity card and persons legally resident in Gibraltar who hold a Gibraltar civilian registration card can never be refused entry to Gibraltar when arriving at Gibraltar airport.

Your British passport, whether it is a UK issued passport or a Gibraltar issued passport, will not, on its own, allow you to establish that you have the benefits granted to you under the treaty. For that reason, you will need to travel with both your British passport and your Gibraltar identity card or the passport of your nationality and your Gibraltar civilian registration card if you do not have a Gibraltar identity card.

Even if you do not intend to cross an external border of the Schengen Area, for instance, if you intend to cross the land border to spend the day in Spain, you should still always travel with your passport and Gibraltar identity card or Gibraltar civilian registration card.

No. Unless your Gibraltar identity card (the red ID card) or your civilian registration card (blue, magenta or green) is coming up for renewal, there is, for the time being, no need to apply for any new card because of the treaty arrangements. Your current cards will be able to prove that you are entitled to the benefits granted under the treaty and you will not be left in a position where you will not be able to enjoy those benefits on day one of the treaty entering into force.

In future, new residence permits will replace the different colour civilian registration cards. However, for the time being, the public need not take any steps in relation to this.

Third country nationals who are neither holders of Gibraltar identity cards nor holders of Gibraltar civilian registration cards will need to satisfy Schengen entry conditions and Gibraltar entry conditions in order to enter Gibraltar and the Schengen Area (in the latter case as at any other Schengen external border).

In so far as the Schengen entry conditions are concerned, these are listed in Article 6 of the Schengen Borders Code which can be accessed here. Gibraltar entry conditions will be aligned with this legislation so that the same conditions will be applied by the Gibraltar authorities when enforcing Gibraltar immigration law.

These conditions include, for persons seeking to visit Gibraltar or the Schengen Area for less than 90 days in any 180-day period:

The need to not have been in Gibraltar or the Schengen Area for periods extending beyond that period (Gibraltar already operates a 90-day period to register their presence for all British citizens and Third Country nationals who are not Gibraltarians or registered residents);
The need to have a valid passport;
If they are visa requiring third country nationals (which is NOT the case for UK or US nationals) the need to have a valid visa;
The need to justify the purpose and conditions of stay;
The need to fulfil EES and ETIAS requirements once these are fully implemented.

Separately, EU citizens and persons having the right of free movement under EU law will be subject to the same regime that is currently applied to them under EU law. In other words, they will need to produce a valid passport or identity card in order to enter Gibraltar or the Schengen Area through Gibraltar.

It is often not understood by many that the United Kingdom and Gibraltar have always constituted two entirely separate jurisdictions. That is NOT changing as a result of these arrangements. Gibraltar does not form part of the United Kingdom and separate immigration laws apply in Gibraltar and in the United Kingdom. Gibraltar is constitutionally free to adopt its own rules in this area.

Moreover, Gibraltar has never formed part of the Common Travel Area between the United Kingdom, Ireland, the Isle of Man, and the Channel Islands. For this reason, there have always been immigration controls between Gibraltar and the United Kingdom. The new Schengen arrangements change very little in this respect.

Moreover, it has for a very long time been the case that British citizens do not have an absolute right to remain in Gibraltar indefinitely. The long-standing policy of successive Gibraltar governments since the 1960s has been to treat British citizens who are not registered Gibraltarians and are not resident in Gibraltar as EU citizens for immigration purposes. Under this regime British citizens, like EU citizens, can legally remain in Gibraltar for a period of up to 3 months. For periods longer than 3 months, such persons are legally obliged to register their presence in Gibraltar and take up legal residence in Gibraltar. A failure to do so would render that person’s stay in Gibraltar illegal. This has been the position historically and will NOT change under the new arrangements. Therefore, we would urge any British citizen, or EU citizen, who has been in Gibraltar for a period longer than 3 months to come forward and regularise their presence in Gibraltar immediately with the Gibraltar authorities. They can be contacted at the following email address:

immigration.diha@gibraltar.gov.gi

Moving forwards the position under the treaty will not be radically different in the sense that there will continue to be the same limitation on the time that a British citizen who is visiting Gibraltar can stay in Gibraltar, namely 90 days in any 180-day period. The main difference will be that time spent in Gibraltar as well as time spent in the Schengen Area will, from the date of entry into force of the treaty, count towards this entitlement.

As is the case between all Schengen states, Gibraltar has agreed to align its short stay visa policy (for stays of 90 days in any 180 days) with that of the Schengen Area. In the same way that the short stay visa policy of the Schengen States is homogenised to allow immigration control free movement across the internal borders of the Schengen States, this is a necessary element of the treaty which allows for there to be no immigration controls between Gibraltar and the Schengen Area.

This leads to a number of consequences:

Gibraltar will align its list of visa-requiring third-country nationalities with that of the EU over time.
Gibraltar will no longer operate exemptions linked to a person’s immigration status in the UK e.g. the exemptions we currently apply with respect to visa-requiring third country nationals who are resident in the UK or have been issued with a UK visa.
Neither will Gibraltar operate any other exemption that is not consistent with Schengen policy on visas.
Gibraltar will recognise, as valid for entry into Gibraltar, Schengen short-stay visas issued by any of the Schengen States.
The Schengen States will no longer require a Schengen short-stay visa from any person legally resident in Gibraltar. This will be of particular interest to persons legally residing in Gibraltar who have normally required a visa in order to travel to the Schengen Area (e.g. Indian or Moroccan nationals).
Gibraltar will reciprocate with respect to persons legally resident in a Schengen State.

So, in relation to visas, what will be required from visa-requiring third-country nationals (therefore, NOT British citizens) who wish to visit Gibraltar?

In addition to fulfilling other entry conditions applicable (see response to question 2), such persons will be required to be in possession of a Schengen short-stay visa. To obtain one, an application would need to be made to the appropriate Schengen authorities. Where the main purpose of the visit is to stay in Gibraltar, the treaty allows Spain, as the neighbouring Schengen State, and whose Schengen territory will actually be crossed by the traveller, and with access to Schengen information systems that shall issue the visa. However, if a visit includes destinations both elsewhere in the Schengen Area (e.g. Portugal) and Gibraltar, and Gibraltar is not the main destination, the visa will be issued by the Schengen State competent to do so in accordance with Schengen rules (e.g. Portugal in this example if Portugal is the main destination).

Separately, and a point that is important for shipping agents and port operators to note, exemptions from visa requirements will apply to civilian sea crew members, when they land to board a ship or go ashore to transit to another country, provided they hold a seafarer's identity document issued in accordance with the International Labour Organisation Conventions No 108 of 13 May 1958 or No 185 of 19 June 2003 or the International Maritime Organization Convention on Facilitation of International Maritime Traffic of 9 April 1965.

Gibraltar will remain the only relevant competent authority for the issue of residence permits valid for Gibraltar. This will remain the competence of the Gibraltar Government.

However since, as stated above, the effect of the treaty is to remove immigration controls between Gibraltar and the Schengen Area, it is necessary and logical for the provisions on residence permits to be based on those which apply between Schengen States. All Schengen States are required to consult the Schengen databases when they propose to issue residence permits in their respective countries. The same consultation will take place whenever we issue or renew residence permits. We shall carry out that consultation with the Schengen States via Spain as the neighbouring state, but it must be emphasised that the check is with all Schengen States, not Spain alone, via the Schengen databases. Such consultations are understandable, necessary and proportionate because once a residence permit is issued to a person in Gibraltar, then, in the same way as a residence permit that is issued in any Schengen State, that permit will grant the facilitations set out above and shall exempt the holder of the permit from the stamping of their passports, from the EES and from ETIAS.

It needs to be reiterated that no immigration controls will exist at the land border and that, from Spain, the holder of the Gibraltar residence permit will be able to travel freely to any of the other 28 Schengen States. The purpose of the consultation is to check whether the applicant poses a threat to any of the Schengen States. That is the same reason why Schengen States are required to consult each other before they issue or renew residence permits. The consultation process does not grant Schengen States free reign to raise objections to the grant of a residence permit. It would never be the case that any Schengen State could object to the granting of a Gibraltar residence permit for reasons other than, on the basis of the personal conduct of the applicant, they represent a genuine and sufficiently serious threat. This would apply, for instance, in cases where a Schengen State has entered an alert in the Schengen Information System for refusing entry to the individual concerned on security grounds. That threshold is very high and cannot be applied arbitrarily.

The political border between Gibraltar and Spain will remain just like the political borders between the Schengen States continue to exist. What will be removed is the part of the border fence that would no longer serve any purpose given the absence of immigration controls between Gibraltar and Spain. Not immediately but, in time, it is likely that road designs will change to do away with the current designs which create the bottleneck required for persons to undergo controls. It will, however, be necessary to provide systems to be able to reimplement controls in cases of emergency, suspension of Schengen arrangements and other relevant circumstances.

There will be changes too to the interior of the airport terminal to make adjustments catering for new passenger lane segregation for both border and customs entry and exit controls. Notably, these changes will see the construction of a Second Line Checks Area – a space which will straddle the political border equidistantly in which the Spanish and Gibraltar authorities will be able to move freely as they fulfil the functions agreed under the treaty arrangements. There will also be new immigration booths which will connect to this area, new e-gates and Schengen IT systems, like the EES, will be installed for those who are required to make use of them.

Since different immigration rules apply to persons having the right of free movement under EU law and Gibraltarians and persons legally resident in Gibraltar, on the one hand, as compared to third-country nationals, on the other hand, these passenger flows will be split on arrival for fluidity and efficiency.

In time, new infrastructural changes will be made to cater for the operation of flights to Schengen destinations – this being another possibility which has been unlocked under the treaty.

Under Schengen rules special procedures typically apply to maritime traffic. Gibraltar will align its procedures with these rules which, as those active in maritime industries will know, rely substantially on the electronic provision of advanced passenger information for checks to be carried out remotely. In those limited cases where physical controls on passengers or crew do need to be carried out, these will be carried out at the airport border crossing point. Arrangements will be put in place to securely escort those requiring checks to and from the port to the airport. Immigration controls will not be carried out by the Schengen authorities at the port.

The Government took a decision, on 6 October 2025, to introduce a temporary administrative pause on new long-term residency registrations for British citizens and EU citizens and other persons having the right of free movement under EU law following the enactment of the Immigration (EU Exit) Regulations 2025. The circumstances which gave rise to that decision and clarification on the current scope to secure new legal residence in Gibraltar were explained by the Chief Minister in the Gibraltar Parliament on 15 October 2025. That address can be read here.

Not least because of the attraction to living in Gibraltar in future because of the treaty, the Government is in the process of reviewing its residency criteria and, on doing so and enacting new legislation providing for the same, the administrative pause referred to above will be lifted.

The Government understands the concerns expressed by sectors of the public with respect to public safety and security issues which could arise as a result of having an open border with Spain. The Government can only continue to reassure the public that Gibraltar will be made more secure with a treaty than without one.

First, the Gibraltar Government will strengthen the presence of crime law enforcement agencies along the border and will make full use of modern-day technologies deployed in border areas around the world which assist with the detection of offenders or persons who are of interest to law enforcement agencies. This will include Live Facial Recognition and a new Tri-Service Joint Operating Base for the RGP, Customs and the BCA at the area of the Airport/Four Corners. New CCTV, lighting and permanent mobile controls will be enabled at Four Corners.

Second, infrastructure along the border, including the airport facilities, runway, MOD facilities and the MOD estate, as well as all the Kingsway Tunnel, all of which are heavily secured and surveilled, will push all those entering Gibraltar to do so via the one public highway which will be monitored, 24/7, both by patrolling law enforcement agents and through the use of the technologies referred to in the preceding paragraph.

Third, the treaty will establish closer cooperation on law enforcement on criminal justice matters with Spain and the Member States as well as European organisations such EUROPOL than ever before. More intelligence will be shared (including with respect to criminal records), more will be done jointly, and there will be fewer barriers in communication which, in the past, have only benefitted those who seek to harm society.

Fourth, we do not consider that an open border would lead to a greater number of illegal migrations into Gibraltar. Gibraltar is a small territory. Like today, anyone looking to live in Gibraltar illegally would be easily identified and deported.

Fifth, Gibraltar will not be the only example of a small territory with open borders with its neighbours. Monaco borders France and San Marino borders Italy. Both France and Italy are in the Schengen Area. Very much for the same reasons we provide above, both Monaco and San Marino are two of the safest countries in the world and neither have systematic illegal migration issues.

FAQs: Goods and Customs

Clear answers to the most common questions about the UK–EU Treaty in respect of Gibraltar.

A. IMPORT AND EXPORT OF GOODS - TRADERS

Subject to some exceptions (discussed below), all goods imported into Gibraltar must be imported by land and undergo customs clearance formalities at an EU customs post designated in the treaty. These are Algeciras, La Linea and Sagunto with an additional post to be designated in Portugal.

Goods will be imported into Gibraltar under two consecutive transit regimes, irrespective of whether goods are being imported from the EU, the UK or any other non-EU country.

The first transit regime will be the standard Union transit regime, involving the “T1” or “T2” codes (depending on whether the goods are non-EU goods, in which case the T1 is used, or whether the goods are EU goods, in which the case the T2 is used. This transit regime will cover the movement of goods within the Union territory and will be closed once all relevant customs clearance formalities are completed at the EU designated customs post.

Once that transit regime is closed, a second transit regime will be opened at that same EU customs post which is the regime that is specific to Gibraltar and covers the movement of goods between the EU designated customs post and Gibraltar. The New Computerised Transit System (NCTS), which is the mandatory electronic system used across the EU and Common Transit Convention countries to manage, control, and monitor the movement of goods under transit, will be used for this applying the new codes “T1GI” (for non-EU goods) or “T2GI” (for EU goods). The formalities for closing that second transit regime will need to be carried out at Gibraltar Customs upon arrival of the goods in Gibraltar, including the levying of the transaction tax and excise duties where applicable.

It will be responsible for carrying out all customs clearance formalities on goods entering or leaving Gibraltar in line with EU customs law.

In the case of goods coming from outside the EU and only transiting through the EU to Gibraltar, these will consist of all relevant procedures, measures and controls in accordance with EU law (such as customs formalities, conformity with product rules, requirements and standards, prohibitions and restrictions, sanitary and phytosanitary measures as provided for in EU law). In the case of such goods, it will also be responsible for collecting the EU customs duties, on behalf of Gibraltar, that may apply before these goods enter Gibraltar.

In the case of goods that are already in free circulation in the EU, the EU designated customs post will essentially proceed with the relevant procedures and formalities to close the Union transit regime and open the second Gibraltar transit regime for what will be then essentially tax purposes.

The designated customs posts will keep a register containing details of all exports bound for Gibraltar, including reference to the Harmonised System/Combined Nomenclature codes, quantities and value of goods based on an invoice provided by the holder of the transit procedure, the date of acceptance of the transit declaration, the items of charge, the master reference number (T1GI XXX or T2GI XXX), and any other data necessary for the calculation of the transaction tax and the excise duty where applicable. It shall transmit such information on item level to Gibraltar Customs for the calculation of the amount of the transaction tax and excise duty due and to be levied in Gibraltar.

As a general rule, under EU law, sanitary and phytosanitary (“SPS”) related customs clearance formalities must be carried out at the first point of entry of the goods into the EU. So, the SPS controls on goods being imported by land from, say, the United Kingdom will need to be cleared for these purposes in France (or any other point of first entry in the EU).

SPS goods may be imported by sea from a third country to Algeciras which then becomes the point of first entry of the goods into the EU. Once cleared there, they may be transported to Gibraltar by land under the T1GI transit code.

SPS goods that are already in free circulation in the EU before entering Gibraltar would not need further SPS controls but would only undergo the formalities necessary for the second transit to Gibraltar at any one of the designated customs posts.

We expect that the bulk of the trade destined for Gibraltar will be handled by Algeciras and, as was the case at the time of our membership of the EU with over 95% of imports coming by land, at La Linea.

With the bulk having been covered, Sagunto was chosen for strategic reasons. Sagunto serves as a major industrial, energy, and automotive hub in the Western Mediterranean with specialisations which are important for Gibraltar, such as in vehicle logistics. It is a key entry point for Asian imports into the Iberian Peninsula.

To guarantee the continued supply of products to Gibraltar, it was also necessary for there to be a subsidiary designated customs post outside of Spain. One in Portugal will be designated, this being the EU Member State closest to Gibraltar after Spain. This designated customs post will not be able to be used on a routine basis. It will only become ‘activated’ in cases where, for unforeseen reasons, or reasons of force majeure, none of the designated customs posts in Spain are available.

HM Customs will be responsible for closing the T1GI and T2GI transit procedures upon the arrival of the goods in Gibraltar and will notify the EU designated customs post that acted as office of departure of the arrival of the goods. HM Customs will also be responsible for levying the transaction tax and excise duties (where applicable) where the goods are to be placed on the Gibraltar market. They will also be responsible for opening the T1GI and T2GI Gibraltar transit for goods exported from Gibraltar. And they will also cooperate with the competent customs authorities within the EU with regard to the verification of compliance with the customs part of the treaty.

The goods will have to be presented to Gibraltar Customs who will be responsible for opening their transit to an EU designated customs office using the NCTS applying the T1GI or T2GI codes. That EU designated customs post will then be responsible for transmitting to Gibraltar Customs the information necessary for closing the T1GI or T2GI transit and for completing the formalities necessary either for their transit through the EU to the final destination or the relevant export formalities should those goods have as final destination the EU.

The basic rule is that all goods will need to be imported and exported by land. This corresponds to what was happening during EU membership, where over 95% of all goods imported into and exported from Gibraltar was by land.

There will be some exceptions, which cover important commodities:

goods already in free circulation in the EU may be brought into Gibraltar by sea. Such goods will first need to clear customs formalities at the designated customs post in Algeciras and be transported directly to Gibraltar, within a given timeframe, under cover of a T2GI transit procedure. The vessel must be completely unloaded in Gibraltar and this will therefore require a feeder vessel / barge between Gibraltar and Algeciras;
ship supplies (of any origin), which include traditional supplies and spares, as well as bunkering fuel and supplies to aircraft, may be exported by sea or air to non-EU countries after having completed customs clearance formalities at an EU designated customs post but without having to be physically presented there;
bunkering fuel (of any origin) may be imported by sea after having completed customs clearance formalities at an EU designated customs post but without having to be physically presented there;
goods may be imported by sea from non-EU countries to be placed under an inward processing or temporary admission procedure in Gibraltar – this will cover, notably, broken/damaged ship supplies;
goods which had been placed in an inward processing or temporary admission procedure in Gibraltar may be exported by sea as long as their destination is a non-EU country and after having completed customs clearance formalities at an EU designated customs post but without having to be physically presented there.

There will be separate regimes for EU goods and non-EU goods.

(a) EU goods.

EU goods which have been cleared for entry into Gibraltar may be placed in a special procedure. These consist of customs warehouses, inward processing or temporary admission. The effect of placing goods in one of these procedures is that it suspends the levying of the transaction tax and excise duties (where applicable) when those goods arrive in Gibraltar.

EU goods can be kept in these procedures for the following periods:

in a customs warehouse for a period of between 1 to 9 months, save that the lower limit will not apply to ship supplies;
inward processing and temporary admission for a period of 3 months, which can be extended where justified.

Gibraltar Customs will be responsible for applying rules based on the relevant EU customs legislation in relation to these three procedures, including granting the relevant authorisations to the warehouses and supervising the operation of the procedures.

(b) Non-EU goods.

Non-EU goods which have been cleared for entry into Gibraltar may be placed in the same special procedures as for EU goods (customs warehouses, inward processing or temporary admission). But in this case, the actual EU customs legislation shall apply to these procedures. As a result, these procedures will be subject to a dual authorisation and supervision regime: one applying the relevant customs requirements of EU legislation by the designated customs post and the other applying the relevant Gibraltar laws on trading licences and trading authorisations with respect to activities taking place in Gibraltar by Gibraltar Customs and the Office of Fair Trading.

Where a customs warehouse contains both EU and non-EU goods, this regime shall apply.

There is no limit on the time that the non-EU goods may be kept in a customs warehouse (bond). The time limits will also be longer (at least 24 months) for non-EU goods placed under an inward processing or temporary admission procedure.

Yes. With regard to customs warehouses used for non-EU goods or mixed EU and non-EU goods, the EU’s Customs Code will apply and conditions include, but are not limited to:

Mandatory digital inventory accessible to Spanish and Gibraltar Customs.
Full traceability of goods at all times.
Clear identification of customs and excise status.
Financial/security guarantees required.
Strict control over movement and release of goods.
Security standards.
Immediate reporting of irregularities.
Audit and inspection powers.

The conditions with regard to customs warehouses used exclusively for EU goods is a matter for HM Customs but it will be the case that these conditions will be based on the relevant EU customs legislation applied as necessary for tax purposes.

The question of which customs agents will be responsible for the different stages in the transit of goods to Gibraltar, as well as what forms (such as the EAD) and/or electronic transit declarations will be necessary under the new model, is currently being discussed between Gibraltar and Spanish customs authorities. We do not anticipate any significant changes on how Spanish and Gibraltarian customs agents currently operate in relation to the clearance of customs formalities.

There will continue to be a Customs presence in the area of Four Corners. For instance, the current customs holding area to the east of the Commercial Gate will remain and that will be the area where Customs will levy the new transaction tax and excise duty where applicable and transit regimes will be opened and closed. Furthermore, Customs will not lose their capacity to conduct random checks for drugs and other illicit goods whether at Four Corners or in any other part of Gibraltar, as today.

The specific operational aspects of the regime with regard to the transit of goods between HM Customs and the EU designated customs post are currently being settled between the relevant customs authorities. We do not expect any major changes on matters such as declarations, guarantees and use of the ASYCUDA system. The Government will report separately once these matters have been clarified.

B. TAXATION

The current import duties regime will cease to apply on the entry into force of the treaty.

Non-EU goods which are to be placed on the market in Gibraltar will be subject to such customs duties as may be due on those goods in accordance with the EU Common External Tariff (see further below).

New rules on a Transaction Tax and Excise Duties will be introduced on all products placed on the market in Gibraltar. The excise duties will apply to tobacco, fuel and alcohol products. These three products will be subject to both the transaction tax and the excise duties.

Customs duties on non-EU goods will be applied and charged at the EU designated customs posts in accordance with the EU Common External Tariff.

The transaction tax and excise duties (where applicable) will be levied upon the importation of the goods into Gibraltar. When the goods are manufactured in Gibraltar, they will be levied when the goods leave the production site. They shall be charged and collected by Gibraltar Customs.

The transaction tax and excise duties will only apply when the goods are to be placed on the Gibraltar market. So, if goods are imported with the aim of being placed in a special customs procedure, the transaction tax and excise duties will only be levied once and if the goods are released from that procedure to be put on the market in Gibraltar.

Yes. Where a trader has already paid the transaction tax and excise duties on a product that is subsequently to be exported to the EU, the transaction tax and excise duties will be refunded once the exporter can prove that VAT and excise duties have been paid in the EU.

Where the product is to be exported to a non-EU country (such as the UK), the transaction tax and excise duties will be refunded when the EU designated customs post informs Gibraltar Customs that all formalities for the export of the product have been completed.

The taxable amount for goods imported into Gibraltar shall be determined with reference to the value for customs purposes. It shall include, insofar as these elements were not already included in the customs value:

(a) taxes, duties, levies and other charges (including excise duties) due by reason of importation, excluding the transaction tax to be levied; and

(b) incidental expenses, such as commission, packing, transport and insurance costs.

The taxable amount for goods produced in Gibraltar shall be the open market value at the time the goods leave the production site. ‘Open market value’ means the full amount that, in order to obtain the goods in question at that time, a customer at the same marketing stage would have to pay, under conditions of fair competition, to a supplier at arm's length in Gibraltar. Where no comparable supply of goods can be ascertained, ‘open market value’ shall mean an amount that is not less than the purchase price of the goods or of similar goods or, in the absence of a purchase price, the cost price, determined at the time the goods leave the production site.

Goods imported into Gibraltar from the EU by traders will not be subject to EU customs duties or to VAT and excise duties applied in the EU but will be subject to the transaction tax in Gibraltar when the goods are imported for placing on the market in Gibraltar.

Goods imported into Gibraltar from the UK by traders will not be subject to VAT and excise applied at source in the UK but will be subject to the transaction tax in Gibraltar when the goods are imported for placing on the market in Gibraltar.

Where the goods are of UK origin, as set out in the EU-UK Trade and Cooperation Agreement (the “TCA”), they will not be subject to EU customs duties when cleared for importation into Gibraltar. Where the origin of the goods is not the UK but a third country, so that the goods are merely being transported from the UK, the goods will be subject to whatever EU customs duties are due on such goods under the EU’s Common External Tariff. This is to ensure that the UK / Gibraltar trading route does not circumvent the EU’s Common External Tariff. This applies equally to goods imported from third countries other than the UK. As stated above, such customs duties will be levied by the EU customs post performing the customs clearance formalities to allow the importation of those goods into Gibraltar. The customs duties collected with respect to goods destined for Gibraltar will be reimbursed, minus administrative costs, to HM Customs Gibraltar in accordance with procedures agreed under the treaty.

The standard rate of TT shall not be below the lowest standard VAT rate applied by an EU Member State, which currently is 17%. This will start at 15% at the entry into force of the Agreement increasing annually to 17% by the third year: see further reply below to Question B.12 on the “Role of the independent body”.

A reduced rate of 5% and a super reduced rate of 0% will apply to certain goods. The definition of the product categories which can benefit from the reduced or super-reduced rates are to be aligned with what is provided for under Annex III of the EU VAT Directive. The choice is determined by that list. These are:

Super-reduced rate of transaction tax of 0%:

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs.
Supply of water.
Pharmaceutical products used for medical and veterinary purposes, including products used for contraception and female sanitary protection, and absorbent hygiene products.
Medical equipment, appliances, devices, items, aids and protective gear, including health protection masks, normally intended for use in health care or for the use of the disabled, goods essential to compensate and overcome disability.
Supply, including on loan by libraries, of books, newspapers and periodicals either on physical means of support or supplied electronically, or both, (including brochures, leaflets and similar printed matter, children’s picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), other than publications wholly or predominantly devoted to advertising and other than publications wholly or predominantly consisting of video content or audible music; production of publications of non-profit-making organisations.
Supply of solar panels to be installed on and adjacent to private dwellings, housing and public and other buildings used for activities in the public interest.

Reduced rate of transaction tax of 5%:

Goods of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings; and, until 1 January 2032, supply of chemical pesticides and chemical fertilisers.
Live equines.
Live plants and other floricultural products, including bulbs, cotton, roots and the like, cut flowers and ornamental foliage.
Children’s clothing and footwear; children’s car seats.
Bicycles, including electric bicycles;
Works of art, collectors’ items and antiques listed in Annex IX, Parts A, B and C of the EU VAT Directive.
Tools and other equipment of a kind normally intended for use in rescue or first aid services when supplied to public bodies or non-profit-making organisations active in civil or community protection.

No. Other exemptions which are spread throughout the main body of the EU VAT Directive, and described as mandatory exemptions, shall also apply. These currently include: bunkering fuel; the supply of goods for the fuelling and provisioning of vessels used for navigation on the high seas and carrying passengers for reward or used for the purpose of commercial, industrial or fishing activities; the supply of goods for the fuelling and provisioning of aircraft used by airlines operating for reward chiefly on international routes; the supply of goods closely related to the provision of children’s or young people’s school education or university education, vocational training or retraining by bodies governed by public law having such as their aim or by other organisations recognised as having similar objects; the supply of human organs and blood, the supply of dental prostheses by dentists and dental technicians.

In addition, as a specific exemption in the treaty, LNG imported and used for the production of electricity as well as electricity produced in Gibraltar shall be exempted from transaction tax and excise duty.

The EU minimum excise rates shall apply at the entry into force of the treaty on tobacco and alcohol. A retail price differential mechanism with Spain of 0.80 EUR or 15% shall also apply in relation to cigarettes. No excise duties will be applied to fuel for the first three years of application of the treaty.

After those first three years, all excise goods will be subject to an excise duty rate that can be no lower than 6% from the excise duty rates applied by Spain.

Yes. These too will be aligned with what is provided for in EU excise legislation. These currently include: fuel supplied to commercial vessels and aircraft; energy inputs used to create electricity; and goods exported from Gibraltar.

An independent consultative body will be appointed by Gibraltar and Spain to assess the effect of the rates of the transaction tax and excise duties on market conditions.

This body may recommend that a higher or lower standard rate of transaction tax and excise duties should apply to a selection of goods or categories of goods where it has found that there exist significant distortions in trade between Gibraltar and the Campo de Gibraltar which are linked to the differences in the levels of the transaction tax and excise duties charged in Gibraltar compared to the rates of VAT and excise duties charged in Spain.

The higher rate it may recommend would be to such a level as to avoid the distortion caused by the different rate of the transaction tax and excise duties in Gibraltar and VAT and excise duties in Spain. The lower rate of transaction tax can be up to 2% below the lowest applied by any EU Member State but never below 15% which is the floor set up by the EU VAT Directive. In the case of excise duties, the lower rate can never be lower than the EU minimum rates with the exception of fuel in petrol stations, where, in case of risk of supply, it may recommend a rate lower than the EU minimum rate.

A safeguard clause may be triggered by the EU when there is non-compliance with a recommendation of the independent body where significant distortions persist.

No.

There will not be limits on the quantity of goods that a Gibraltar trader may sell online to a consumer in the EU. As far as taxation is concerned, the destination principle will apply. That is to say, the consumer will not pay the transaction tax but will be required to pay the VAT and excise duties in his/her EU Member State of residence.

Under EU law, when purchasing a motor vehicle in one EU Member State and registering it in another, VAT is typically paid in the country of registration at that country’s VAT rate. In some cases where the seller insists on the payment of VAT in the State of purchase, the buyer can obtain a refund of that VAT when s/he registers the vehicle in his/her country and pays the VAT there. That same regime will apply under the treaty.

Duty free sales at the airport will continue for passengers travelling to non-EU destinations such as the UK.

C. WHAT GOODS WILL BE PLACED ON THE MARKET IN GIBRALTAR.

As from the date of entry into force of the treaty, all goods imported into Gibraltar, or produced in Gibraltar, which are placed on the market in Gibraltar, will have to comply with such EU rules that may apply to the production or placing on the EU market of such goods. In the case of imports, this restriction applies both to goods imported for sale or for consumption or use in Gibraltar. In cases where such rules exist, it is the case that sometimes, but not always, the product is required to carry the “CE” marking.

Goods lawfully placed on the market in the EU will be presumed to be compliant with all such applicable rules.

No, the EU has not adopted specific rules for all types of goods. This is the case, for instance, in relation to furniture, textiles, stationery and certain construction materials.

It will still be possible to use goods which conform to UK standards, or British Standard goods in Gibraltar. They just must comply with EU safety laws and bear the mandatory “CE” mark where applicable. There are many cases where products marked as conforming to requirements for products sold in Great Britain (these are marked with a “UKCA” marking) are also marked with the “CE” mark confirming that those products also meet EU requirements.

In addition, the UK has adopted the “BS EN” standard which is the British (BS) adoption of the EU (EN) standard and identical in technical content. Many industries in the UK have now shifted from the older BS standards to the newer BS EN standards. If a product complies with a BS EN standard, it also complies with the corresponding EN standards.

On this basis, three-pinned plugs, for instance, can continue to be sold and used in Gibraltar. EU Member States such as Ireland, Cyprus, and Malta use three-pinned plugs.

Unless covered by one of the exemptions listed below, UK products imported into Gibraltar must meet the requirements set out in the responses to Questions C.1 to C.3 above.

With respect to food, to note that the EU and the UK are currently negotiating an SPS Agreement. When concluded, it is expected that this agreement will greatly facilitate the export of UK agri-food, animal and plant products to the EU and, therefore, their availability in Gibraltar. The intention is for this agreement to enter into force by the summer of 2027.

Yes, the following goods are subject to specific rules:

(a) Medicines for human use.

Medicines for human use, which have been authorised by the competent authorities of the UK to be placed on the market in the UK and which are not authorised by the competent EU authorities for being placed on the market in the EU, will continue to be able to be imported into Gibraltar provided that these medicines are marked by the UK manufacturer with a “UK only” label. This derogation will secure the continued general availability of these medicines in Gibraltar which was important given that over 90% of medicines for human use imported into Gibraltar are imported from the UK.

(b) Medical devices.

A specific derogation with respect to medical devices which can only lawfully be placed on the market in the UK and not in the EU will be available in relation to such devices imported by or procured for the Gibraltar Health Authority (the “GHA”). These products will also be subject to a labelling requirement as foreseen in the Agreement.

(c) Food.

Food produced in Gibraltar or prepared, processed or repacked by retail establishments in Gibraltar and placed on the market in Gibraltar for local consumption. The general objective of this derogation is to prevent the small-scale food production which takes place in Gibraltar (e.g. in cafes, confectionaries and bakeries), or the food processing which takes place at retail establishments in Gibraltar (e.g. when meat is marinated for sale at a butchers), from having to comply with EU rules. The derogation does not allow for the import of non-EU compliant food to Gibraltar.

Compliance with these requirements will first be checked by the EU designated customs posts at the point of import.

The Gibraltar Office of Fair Trading and Gibraltar Customs will then have a continuing obligation to survey the market and inspect that goods in Gibraltar comply with these requirements whether it is the case that the goods were imported into Gibraltar or produced in Gibraltar.

D. IMPORT AND EXPORT OF GOODS - INDIVIDUALS

(a) Regime for the first three years of operation of the treaty.

An allowances regime will apply for the first three years of operation of the treaty. To note that an allowances regime refers to the amount of goods that a person can carry when crossing a border without having to pay tax or excise duties on those goods in the country they are travelling to. It is not a cap on the quantity of goods that a person can carry.

During the first three years of operation of the treaty, any Gibraltar resident entering Gibraltar by land with purchased goods in their personal luggage of a value of €300 or less, will pay the VAT in the EU and not pay transaction tax in Gibraltar. You will not be able to get a refund of VAT paid in the EU.

The phrase “in their personal luggage” refers to goods carried by the person him/herself which are generally small in size or quantity and which consist exclusively of goods for the personal or family use of the travellers, or of goods intended as presents.

Where the value of the goods in your personal luggage exceeds €300, you will be required to declare the goods at a counter to be established by the airport and you will be required to pay the transaction tax applicable to those goods in Gibraltar.

If the goods are transported for you by a commercial operator (be it a transport company or the seller itself) then, irrespective of the value of the goods, this would not qualify as goods being carried in your personal luggage even if the goods are for your own personal use. The allowances regime does not apply. In this case, the commercial operator will be required to open a transit regime to bring the goods into Gibraltar. VAT should not be charged on the goods and the transaction tax will have to be paid upon the arrival of the goods in Gibraltar.

The same regime will apply to Gibraltar residents entering Gibraltar from the EU by sea or air (when flights between Gibraltar and the EU start operating once the treaty enters into force), save that, in this case, the threshold would be of €430 instead of €300.

These allowances apply per person, not per family group. However, in the case of travellers under 15 years old, the threshold referred to will be €175 for entry into Gibraltar and €150 for entry into Spain.

(b) What happens after the first three years?

The allowances regime will disappear as between travel between the EU and Gibraltar (whether by sea, air or land). At that point, travel will be treated in the same way as travel between EU Member States themselves. This means that you can travel with unlimited amounts of goods for so long as the goods are in your personal luggage. You will have paid VAT on those goods in the EU and not be able to get a refund of the VAT when you come into Gibraltar. You will not be required to pay transaction tax on those goods in Gibraltar.

If the goods are transported for you by a commercial operator (be it a transport company or the seller itself) this would not qualify as goods being carried in your personal luggage. In this case, the commercial operator will be required to open a transit regime to bring the goods into Gibraltar. VAT should not be charged on the goods and the transaction tax will have to be paid upon the arrival of the goods in Gibraltar.

For the first three years of operation of the treaty, this will be governed by the allowances regime set out in EU Directive 2007/74/EC on the exemption from VAT and excise duty of goods imported by persons travelling from third countries. This means that essentially the same rules as described under Point D.1 (a) will apply.

After the first three years of operation of the treaty, the same rules as described under Point D.1 (b) will also apply.

Any person flying to Gibraltar from the UK with goods in their personal luggage of a value of €430 or less will not be required to declare those goods upon arrival in Gibraltar. You will have paid the VAT in the UK and not pay transaction tax in Gibraltar.

Where the value of the goods in your personal luggage exceeds €430, you will be required to declare the goods when passing customs controls at the airport and you will be required to pay the transaction tax applicable to those goods in Gibraltar on the total value of the goods, not just the value above the allowance. As a matter of UK policy, you will not be able to recover the VAT paid in the UK.

Any tourist flying to the UK from Gibraltar will be able to obtain a transaction tax refund at a counter to be established at the airport. The refund will correspond to the transaction tax levied on the customs value of the goods.

Where a Gibraltar resident purchases goods online from a trader in the EU the destination principle will apply for taxation purposes. S/he will not pay EU VAT but will be required to pay the transaction tax when the goods arrive in Gibraltar. See also reply to Question B.16 for the reverse situation.

E. CONNECTED MATTERS.

EU road haulage operators will be allowed to enter Gibraltar to deliver goods in their commercial vehicles from a point within the Campo de Gibraltar to a point in Gibraltar, that is to say, a roadside drop-off. This is not to say that goods may be delivered from a retailer in, say Algeciras, direct to a household in Gibraltar, without undergoing relevant customs formalities. Since the delivery of the goods is undertaken as part of a commercial operation, customs formalities would need to be complied with even if those goods are for personal use.

The treaty does not cover services (such as catering services, removals, installation of a kitchen or other furniture or repair and maintenance services). By the time the treaty enters into force, any company seeking to provide services in Gibraltar will be required to be registered in Gibraltar for tax purposes, for social insurance purposes and for employment purposes.

FAQs: Port

Clear answers to the most common questions about the UK–EU Treaty in respect of Gibraltar.

This will be the same for seafarers on yachts calling at Gibraltar. It will therefore be the case that seafarers on yachts would be able to go ashore in Gibraltar without having to present themselves to the immigration authorities. The same will apply to seafarers on commercial vessels.

The Schengen Practical Handbook for Border Guards, which summarises Schengen requirements with respect to the above (those in Section 3 of Annex VII of the Schengen Border Code), states the following:

Schengen States may authorise seamen holding a seafarer's identity document issued in accordance with the International Labour Organisation (ILO) Seafarers' Identity Documents Convention No 108 (1958) or No 185 (2003), the Convention on Facilitation of International Maritime Traffic (FAL Convention) and the relevant national law, to enter the Schengen States by going ashore to stay in the area of the port where their ships call or in the adjacent municipalities, or exit the Schengen States by returning to their ships, without presenting themselves at a border crossing point, on condition that they appear on their ship's crew list, which has previously been submitted for checking by the competent authorities.

These facilitations will be mirrored in the context of the Schengen arrangements agreed under the treaty. All ship agents in Gibraltar will be required to accept full responsibility for all crew members embarking or disembarking in Gibraltar and will also be required to submit an annual letter of guarantee undertaking to take charge of all immigration formalities for crew from the vessels they represent.

Officials negotiating the treaty were aware of the need to preserve visa exemption arrangements applying to seafarers using Gibraltar airport to transit to a vessel in order to start their tour of duties or to transit to their destination upon completing their tour of duties. For this reason, it has specifically been agreed with Spain, in writing, that:

“The competent authorities of Spain will exempt from visa requirements under Union law civilian sea crew members, when they land to board a ship or go ashore to transit to another country, who hold a seafarer's identity document issued in accordance with the International Labour Organisation Conventions No 108 of 13 May 1958 or No 185 of 19 June 2003 or the International Maritime Organization Convention on Facilitation of International Maritime Traffic of 9 April 1965”.

In relation to seafarers we do not anticipate issuing any further guidance since the position is clear as stated in the responses to questions 1 and 2 above.

In relation to spares, operators should note that the Government has already published guidance on a wide range of matters concerning our future arrangements on goods and customs. This includes responses to FAQs which cover the issue of ship spares in the context of special customs procedures. This can be accessed here: treaty-gov.info. It is likely that HM Customs Gibraltar will issue a more detailed document shortly in relation to specific sectors – including the shipping sector.

Yes. Both in customs processes terms and also, in so far as waste from ships is concerned, in terms of the environmental standards and the regulatory frameworks which would apply to that waste or the shipment of that waste. A recent discussion with the EU Commission and the Spanish customs authorities on the specific question of exports, to Algeciras, by sea, of waste from ships (slops) in Gibraltar recognised the need to allow this. No immediate difficulties were identified. Those involved in this business will be contacted directly by Government to further discuss this issue.

See replies to Q1 and Q2.

If the goods are in free circulation in the EU, they will need to move from their place of departure in the EU to the EU designated customs post (e.g. Algeciras or La Linea) under the T2 transit regime. How the goods move during that transit procedure, whether this is by air, road or sea makes no difference operationally. Once the goods arrive in the designated customs post, the T2 transit procedure will be closed and a T2GI procedure opened to cover the second leg of the transit from the EU designated customs post to Gibraltar. In this case, since the goods are to be delivered to a vessel and are to be exported from Gibraltar, transaction tax will not be charged and the goods will be entered into a special customs procedure by the Gibraltar customs authorities (since it is the case that these are EU goods). The Government will shortly be publishing detailed guidance regarding forms to use for transit declarations etc.

The response provided with respect to Q6 above applies save that, for the first leg of the transit, the goods would move under the T1 transit regime (for non-EU goods i.e. goods that are not in free circulation in the EU) to the EU designated customs office. Then, at the EU designated customs office, rather than enter the goods into a T1GI procedure the EU customs authorities would, in circumstances where these non-EU goods are to be delivered to a vessel for export from Gibraltar, enter the goods into an EU authorised special customs procedure. As stated above, the Government will shortly be publishing detailed guidance on requirements and forms which are necessary for operators to operate these procedures.

Spares landed in Gibraltar will need to be landed under an inward processing special procedure which would be opened by an EU designated customs post. It would be possible for these spares to arrive in Gibraltar directly be sea without them having to be physically presented at the EU designated customs post. However, the relevant customs declarations must be sent to that EU designated customs post for the inward processing procedure to be opened. The processed goods would then move from Gibraltar to the EU designated customs post which opened the inward processing procedure by road under a T1GI procedure. Once there, the inward processing procedure will be closed and the goods will either be released for free circulation in the EU if they are to remain in the EU or they will move under T1 transit to a destination outside of the EU customs territory.

No. We have safeguarded movements within Gibraltar, via Gibraltar airport which is where the visa exemptions have applied to date. So, the Schengen visa exemption we have obtained (see reply to Q2) does not apply to the routine use of Malaga airport.

See reply to Q.9.

With some limited exceptions applying to goods that are to be entered into an inward processing or temporary admission special customs procedure, or bunkering generally, only EU goods can be imported into Gibraltar by sea and only where they have first cleared customs formalities at the Algeciras DCP.

It will not be the case that goods onboard vessels undergoing customs controls at the Algeciras DCP will always need to be unloaded at Algeciras for those controls to be carried out before the vessel is allowed to sail onwards to Gibraltar. This is not a legal requirement. Spanish customs can perform documentary checks alone or risk-based controls and goods can be released for movement onwards to Gibraltar without being discharged from the vessel.

There are only two scenarios in which commercial goods can arrive direct at the port in Gibraltar without these first having been cleared for onward movement to Gibraltar physically at the EU designated customs post in Algeciras. These are as follows:

(1) Goods (regardless of origin and regardless of whether they come from an EU or non-EU port) which are to be placed under an inward processing or temporary admission procedure; and

(2) Ship fuel (regardless of origin and regardless of whether it comes from an EU or non-EU port) which is to be placed under a customs warehouse procedure before being subsequently exported from Gibraltar as ship supplies.

We need to discuss this scenario further with the EU.

Marine lubricants entered into a special customs procedure in order to be re-exported as ship supplies would not be subject to any indirect taxes in Gibraltar.

Likewise, even if the marine lubricants were to be imported into Gibraltar and were released for free circulation in Gibraltar (at which point indirect taxes would be due), indirect taxes paid on importation would be reimbursed when the marine lubricants are re-exported as ship supplies.

There are no immigration formalities if the movement is from a port in the Schengen Area to Gibraltar or from Gibraltar to a port in the Schengen Area.

If the movement is from a port outside of the Schengen Area, the following reporting obligations apply:

“The master, the ship’s agent or some other person duly authorised by the master or authenticated in a manner acceptable to the public authority concerned (in both cases ‘the master’), shall draw up a list of the crew and any passengers containing the information required in the forms 5 (crew list) and 6 (passenger list) of the Convention on Facilitation of International Maritime Traffic (FAL Convention) as well as, where applicable, the visa or residence permit numbers:

at the latest twenty-four hours before arriving in the port, or
at the latest at the time the ship leaves the previous port, if the voyage time is less than twenty-four hours, or
if the port of call is not known or it is changed during the voyage, as soon as this information is available”.

Information provided under these points is to be provided simultaneously to both the Gibraltar and Spanish authorities for checks to be conducted, electronically, on the basis of this information.