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What the deal covers

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1. Free movement and removal of “La Verja”

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• The physical border fence between Gibraltar and Spain will be dismantled. Crossing at the land boundary will no longer require passport checks, benefiting around 15,000 daily cross-border workers.

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2. Dual border checks at airport and port

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• Arrivals in Gibraltar by air or sea will be subject to “Eurostar-style” controls: both Gibraltar (UK) and Spanish (Schengen) officials will perform simultaneous checks.

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3. Customs union & goods flow

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• Gibraltar will enter into a customs partnership with the EU, with most goods cleared by Spain at land border points or via Algeciras port. To avoid unfair advantages, Gibraltar must raise its indirect taxes (e.g. tobacco) to align with EU norms - VAT will end, replaced by a higher transaction levy.

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4. Sovereignty & military autonomy preserved

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• The agreement explicitly affirms that UK sovereignty and Gibraltar’s military autonomy remain untouched.

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5. Broader cooperation framework

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• The pact lays the groundwork for enhanced collaboration on taxation, labour, environment, transport, social security, anti-money laundering, and police/judicial cooperation. A regional fund will also support cohesion, training, and employment .

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📅 Next steps

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• The political agreement (from June 11, 2025) must now be turned into a legally binding treaty.

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• Signatures and ratification will be required from the UK Parliament, Gibraltar’s House of Assembly, and EU institutions, including Spain’s parliament.

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• Once in force, Gibraltar will participate in the Schengen area effectively, with operational entry controls but a seamless land border.

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👀 Why it matters

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• Resolves the final major Brexit-related obstacle for Gibraltar.

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• Allows daily commuting without delays or queues—a key boost for the local workforce.

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• Balances freedom of movement with regulatory alignment and tax fairness.

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• Strengthens relations between the UK, Spain, and the EU, offering a template for cooperation post-Brexit. This is very significant in a number of ways. The EU can see that the U.K. government wants to work with the EU and it provides a much closer amicable relationship between Spain and the U.K.

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We are attempting to clarify the situation re British passport holders who have residencia in Spain with a TIE. David Lammy has made it clear that British passport holders who cross the land border may be subject to checks but our understanding at the moment is that those in possession of a TIE will just need to show it at the border.  As I said before we are seeking confirmation of this.

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Richard Hill

President Expat support in Spain (Brexpats)