In 2025, Spain achieved what had eluded it for decades: Madrid will now receive comprehensive information about the movement of people and goods through the British naval base in Gibraltar. This became possible after a political agreement was reached, defining the future status of Gibraltar in its relationship with the European Union.
The military base on the Rock (El Peñón) will now be under special supervision. Spanish authorities will be able to monitor who and what enters the base, although they will not have direct control like they do over civilian facilities. At the same time, controls on civilian routes will be tightened: Spanish police will conduct checks at Gibraltar’s airport and port, and all goods bound for the enclave will undergo customs inspection in Algeciras (Algeciras, Cádiz).
Among the key changes is the introduction of an indirect tax in Gibraltar, similar to VAT, at a rate of no less than 15%. This measure is intended to level the playing field for businesses and reduce the risks of illegal imports. Over the next three years, excise taxes on tobacco, alcohol, and fuel will gradually approach common European levels. To combat smuggling, a system for tracking goods will be implemented, and residency permits issued by Gibraltar will now require coordination with Spain to prevent fraudulent registrations.
The agreement does not cover the services sector—this provision was excluded at the insistence of the European Commission to protect the interests of Spain and the EU. The airport, built on the isthmus, will be managed by a joint company with equal Spanish involvement. Gibraltar will be required to comply not only with existing but also with future EU environmental regulations.
The Spanish Foreign Minister emphasizes that the country’s national interests regarding sovereignty remain intact. None of the new measures can be used to file claims in international courts. However, the parliamentary opposition criticizes the government for failing to regain control over Gibraltar and for lacking transparency during the negotiations. In response, the minister reminded that even former foreign ministers considered the sovereignty issue a separate matter, unconnected to the current agreements.
For the agreement to come into force, it requires approval from the European Council, the European Parliament, and the UK Parliament. Although the initial plan was for the new rules to take effect at the start of next year, an exact date has not yet been set.
