Gibraltar Airport Deal: Spain, EU Reach Landmark Agreement

⁢ Updated June 14, 2025

A new political ⁤agreement between the EU and the United Kingdom regarding Gibraltar ⁤includes shared use of Gibraltar ⁤Airport, wiht a mixed company managing operations.‍ Goods entering ⁢Gibraltar will undergo customs controls on Spanish soil.

Spanish foreign Minister José Manuel Albares briefed mayors from Campo de Gibraltar, a representative‍ from the Junta de Andalucía, and various socioeconomic agents on⁤ the “basic aspects” of the deal ⁤in Madrid Friday. The agreement explicitly protects Spain’s legal positions regarding sovereignty and jurisdiction, according to⁣ Albares. The⁢ UK has affirmed that the agreement doesn’t alter its stance on Gibraltar’s sovereignty.

The accord entails removing the gate,facilitating free movement between Gibraltar and the surrounding area. The Ministry ⁣emphasized that eliminating ⁤controls will ‍benefit thousands crossing⁢ the border daily.

Controls will move⁣ to the port and airport, where the Spanish ⁤National Police will ⁣conduct Schengen checks. British authorities‍ will not act as Frontex agents; ⁤instead, Spanish police⁢ will handle these duties. The agreement also covers visa and permit controls, plus close cooperation between police and judicial ⁣bodies.

Goods and Customs

The agreement supports⁢ a customs union between ⁣the EU and Gibraltar. Goods are expected to enter without road checks after undergoing customs procedures in a Spanish port. Currently, most goods arrive via the port of Algeciras.

Gibraltar‍ authorities⁤ have agreed to let Spanish authorities handle customs procedures due to their limited capacity.

Tax Harmonization

The agreement includes principles for indirect taxation,⁤ gradually aligning gibraltar with European tax rates, including those on tobacco, ‍fuels, and alcoholic beverages. This fiscal harmonization aims⁢ to create a ⁣free market⁤ and prevent distortions, benefiting the entire area, according ⁣to the Spanish Foreign⁢ Ministry.

Gibraltar’s Chief minister Fabian Picardo ⁤mentioned a safeguard clause where Gibraltar ⁤will charge a minimum 15% purchase rate—similar to VAT but not⁣ applicable to services. Starting from a current rate of 3%, Gibraltar has⁣ three years to reach 17%, aligning ⁤with the EU minimum. ⁢Picardo clarified that Gibraltarians can no ⁣longer claim VAT refunds on Spanish purchases, contributing to a level playing field.

What’s next

The European Commission’s services will finalize the agreement’s drafting, setting the stage for its implementation and a new chapter in‍ EU-UK relations concerning Gibraltar.