TREATY TEXT PUBLISHED

The long-awaited treaty text has been published. 

The agreement between the United Kingdom and the European Union in relation to Gibraltar is divided into seven main parts and 41 annexes with many of its contents now to be enshrined in Gibraltar law.

Three stages remain: its signature, ratification and implementation.

The treaty text was approved by the Gibraltar Cabinet for ratification on the 19th January 2026 following six briefing sessions with the Attorney General.  It will now be taken to the Gibraltar Parliament on an amendable motion for debate. The approval of Parliament will be the signal to the United Kingdom to proceed to ratification.

It also needs to obtain the consent of the EU Parliament.

Gibraltar is not joining the Schengen area. Immigration, policing and justice remain the responsibility of the Gibraltar authorities.

The treaty includes provisons for consulation and arbitration.

When a dispute raises a question of interpretation of union law, the Court of Justice of the European Union will give a final, binding ruling on interpretation.

SOVEREIGNTY

The treaty does not specifically touch on sovereignty and is without prejudice to any party’s position on it.

It runs parallel to the UK Government’s commitment to the double lock: that it 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, nor enter into sovereignty negotiations with which Gibraltar is not content.

TREATY AIMS

The two core pillars of the treaty deal with the free circulation of people and goods, and include the removal of the physical frontier with Spain.

It includes measures to ensure a level playing field and a commitment on co-operation against money laundering, terrorist financing and tax evasion - as well as on climate change, and on a number of other issues on security and safety.

The treaty sets up forums for regular discussion and communication.  Some communications between the Gibraltar competent authorities and competent authorities of the EU Member States on aspects of the treaty will be via the Foreign Office “postbox”, first established in 2020.

In certain key areas, the EU will inform the UK/Gibraltar of any new legislation that the EU may adopt in the future in areas covered by the treaty and which will be applicable to Gibraltar, with the UK/Gibraltar having the option of whether or not it is to be enshrined in local law.

THE PORT

Passengers arriving at the Port from outside the Schengen area will be submitted to border checks at the airport border crossing point.  They will be escorted by both Gibraltar and Schengen officials.

Spain is to be kept informed of crew lists and passenger lists.

An exemption from visa requirements under EU law will apply to civilian sea crew members when they land to board a ship or go ashore to transit to another country, and who hold a seafarer's identity document issued in accordance with the relevant international conventions.

The ferry to and from Morocco will end.

There will be no cruise liners calling directly into Gibraltar from any third country other than the UK.

THE AIRPORT

‘Enhanced' use of Gibraltar airport allows for flights between Gibraltar and EU destinations.

Only EU carriers or those authorised by the EU will be able to fly these routes.

Only UK carriers or those authorised by the UK will be able to fly from Gibraltar to the UK.

A Gib/Spain joint venture company, established in Ireland, will grant the tender to the company that  operates the civilian part of the airport in specific areas.  The 50/50 venture will mean no change without Gibraltar’s agreement.

Gibraltar Air Terminal Ltd will continue to run operations as before.

Certain EU aviation measures will apply at the airport. They will be implemented by the Gibraltar Parliament.

These are EU aviation measures in the following four areas:

1. Ground handling
2. Slots
3. Charges
4. Rights of passengers with reduced mobility

Safety and security laws, as well as compliance with ICAO standards, will remain the same as today.

Free circulation of persons – what happens at the airport

Gibraltar residents - of any nationality - cannot be refused entry to Gibraltar and will not be subject to coercive controls by the Schengen authorities.

Schengen checks for Gibraltarians and EU nationals will be carried out by automated border control systems.

There are no immigration controls on passengers on Schengen flights.

Entry checks on third country nationals will be carried out by the Gibraltar authorities and then by Spain (as the neighbouring Schengen State).

Exit checks will be carried out by Spain and then by the Gibraltar authorities.

The area where Schengen checks will apply will see infrastructural changes.  The airport is restructured from the Cordoba model. The main changes will occur in the north-western and north-eastern corners of the current terminal.

People will depart for Schengen in a new area where the Wessex Lounge is currently situated. Passengers arriving from Schengen will enter the terminal in the same way as today . There are two baggage reclaim areas: one is at ground level and one is on the first floor. If you arrive from Schengen, you would go to the existing reclaim, and travel up to the first floor using corridors towards the second line checks facility to pass Customs - but not immigration controls - and then come into Gibraltar in the way you do today.

If you arrive from UK (third country) you would enter through a separate entrance next to the existing one, and go up the escalators to the second line checks area, where Gibraltar and Schengen would carry out controls. Schengen interaction would be with the Automated Border Control System. Those not eligible will go to Schengen Immigration booths. You would go back along different corridors, collect your baggage, go to Customs and exit Gibraltar through an area not used at the moment.

ENTRY REFUSAL MECHANISMS

Anyone refused entry at the airport by the Gibraltar authorities will be taken to the Second Line Checks Area where Spanish officials will review whether they are legally entitled to enter Schengen.

Spain can also refuse entry to third country nationals who do not comply with the Schengen Borders Code.  The individual will be given the option to be sent back.

Spain can refuse entry to anyone flagged on the Schengen system. 

Gibraltar would have jurisdiction for anyone flagged on its system.

Gibraltar would be the only competent authority for any Gibraltar resident, although Spain would be notified for further checks on the Schengen database.

Gibraltar has to make flight Advance Passenger Information available to Spain.

The Gibraltar authorities have the power to grant asylum following consultation with Spain.  The applicant must be detained in Gibraltar until a final decision is taken.  If granted, the international protection is limited to Gibraltar.

Spanish officials present at the airport outside the second line checks area could be in uniform within the immigration booths.

Spanish officials outside the Immigration booths, between checks areas, could be in civilian clothes, but always identifiable.

UNION DATABASES

Gibraltar and the UK will not have access to the Schengen databases.

FREE MOVEMENT

Circulation between Gibraltar and all EU member states will not require border checks.

In exceptional circumstances, where there is a serious threat to  public policy, public health or internal security, border controls can be re-instated for an initial period of 10 days, which can be extended for another 20, and thereafter in monthly periods up to six months. This is in accordance with what is set out in the Schengen Borders Code.

RESIDENCE PERMITS AND VISAS

EU citizens and third country EU residents can stay in Gibraltar for 90 days in any 180 without requiring a visa.

Gibraltar residents can stay in any Schengen EU member state for 90 days in any 180 without requiring a visa.

Visas may be required for anyone carrying out a paid activity.

Exemptions include business travel, sportspersons and artists, journalists, and intra-corporate trainees.

Gibraltar residents are exempt from wet-stamping, the Entry/ExitSystem (EES), and ETIAS.

They also have the right to transit through Schengen EU Member States  (even if they do not have the travel requirements) to return home unless they are on the national list of alert of that country and the alert is accompanied by instructions to refuse entry or transit.

Residence will be proved by an ID card or residence permit.

Short stay visas for nationals of third countries who require them to visit Gibraltar will be issued by Spain.

Gibraltar has the right to ask Spain to refuse a short stay visa for Gibraltar on reasons pertaining to public policy, internal security or public health.

Gibraltar can exceptionally issue a limited number of short stay visas at the External border on humanitarian grounds.  This would only be for an initial 15 day period, which can be extended for another 15 days - and is only for Gibraltar.  It does not grant access to the Member States.

Long stay visas will not be issued.

Gibraltar will be responsible for issuing residence permits after notifying the Spanish authorites.  Spain can, however, refuse their issue if it deems there to be a threat to public policy, internal security, public health, or the international relations of any of the member states. In other words, if the person seeking residence in Gibraltar constitutes a threat to the Schengen States.

SECURITY AND POLICING CO-OPERATION

The treaty includes a law enforcement and judicial co-operation framework, modelled on the UK–EU TCA. It provides for intelligence sharing, operational cooperation between the Royal Gibraltar Police and Spanish law enforcement, and joint protocols for cross-border security, including joint patrols.  An example of this is in the case of a missing person.

A joint working group on police co-operation, with members of the relevant authories, is established. Each participant will have an equal number of members.

An encrypted radio frequency will be established as a designated communications channel.  Communication can also take place via the stationed personnel in the joint facility (the “Schengen Shack”).

The authorities of each participant are allowed to perform continued surveillance in each other’s jurisdiction, but this can only be done with prior notice.  They will be allowed to carry weapons, but only use them in legitimate self-defence.  They are not allowed to enter into private homes or areas not accessible to the public. 

Officers involved in these surveillance could be asked to testify in the courts in each other’s jurisdiction.

Hot pursuits will follow the Schengen model.  Schengen authorities in hot pursuit into Gibraltar will need to inform the local authorities beforehand.  The pursuing authorities must be identifiable and may carry their service weapons, which again they can only use in self-defence.  They may detain (until the local authorities arrive) but not arrest the individual. The Gibraltar authorities will be responsible for the individual pursued and any vehicle involved. They would face the Gibraltar judicial system.

This would work the same for Gibraltar authorities in hot pursuit into Spain.

The Schengen authorities will need to be notified of any resident Gibraltar feels poses a risk via a regular risk assessment.  They could then not be allowed into any of the member states.

Gibraltar officials will always accompany Spanish officials in any joint operation on Gibraltarian soil.

The Government is investing in new security infrastructure at the frontier: CCTV with live facial recognition; number plate recognition; full lighting; a tri-service joint operating base for the BCA, HM Customs and the RGP; and new 4x4 patrol vehicles.

The treaty also sets out the conditions for arrest warrants and extraditions as well as for freezing and confiscation orders, and the sharing of banking information, when someone is suspected of criminality.

There is an initial period of four years for evaluating how the Schengen parts of the treaty are working.

All security arrangements are fully reciprocal.

JOINT MARITIME PATROLS

As part of the border surveillance and co-operation, joint maritime patrols will be carried out.  These will be carried out in jointly crewed law enforcement vessels.  The patrols will be carried out on neutrally branded vessels, with a European flag or similar visible insignia to show they Are performing a Schengen border surveillance function.  The vessels will be provided by the two parties on an alternate weekly basis.

Arrests during the surveillance will be carried by the competent authorities of the jurisdiction where the person was arrested and in accordance with their laws.

A joint working group on border surveillance, comprising members of both parties,  will be established.

CO-OPERATION COUNCIL

The Treaty establishes a Co-operation Council with both EU and UK representatives, in respect of Gibraltar.  It will be co-chaired by a member of the European Commission and a UK minister.  It will meet at least once a year.

This ‘referee’ council will supervise and facilitate the application and implementation of the agreement and of any new ones that may arise.

It can also delegate powers to specialised committees.

A panel of independent experts, composed of three panellists, will also be convened and will be answerable to the Council.

It will operate from a list of 15 non-national individuals, with each party nominating at least five.

They will need to be knowledgeable in labour law, environmental law, or the resolution of disputes arising from international agreements.

There will also be Schengen evaluations and joint visits.

SPECIALISED COMMITTEES

The treaty establishes three specialised committees with representatives from the EU and the UK.

1.On circulation of persons

2.On the economy and trade

3.On aviation

GOODS, CUSTOMS AND TRANSACTION TAX

The treaty creates a customs union between the UK and the EU, in respect of Gibraltar. Gibraltar is not joining the EU Customs Territory. It is entering into a bespoke arrangement that enables the free circulation of goods between Gibraltar and the EU without customs checks at the land frontier.

The current import duty regime will be replaced by a new transaction tax, charged on importation (up to 17% in the next three years) After three years, the rate can be re-visited (but never 2 percentage points below the lowest standard of VAT in any Member State).

Alcohol and tobacco will be subject to excise duty, as will energy products and electricity

All revenue from the transaction tax  and excise duty will  be charged in Gibraltar.

Statistics will be provided to the Specialised Committee on Economy and Trade.

Essential goods, including food and pharmaceuticals, will be zero-rated. Solar panels and books will also not be subject to the transaction tax.

A rate of 5% will apply to other specified categories such as children’s clothing, plants, bicycles, works of art, and antiques.

UK medicinal products or devices will be allowed to enter but must state they are ‘UK only’. In the case of devices, these must be only for use by the GHA. They can not be moved to the European Union.

Gibraltar’s traders will be able to access the EU Customs Union market.

They will be able to sell to customers across the EU, and EU consumers will be able to buy from Gibraltar, without customs barriers.  All goods sold on the Rock must be EU compliant.

Goods from Ceuta and Melilla will be subject to the same treatment as goods to the EU.

EU goods may also be moved by sea, including from Gibraltar to third countries.

Union goods arriving at Gibraltar by sea will be customs cleared in Algeciras.

Spain will carry out customs clearance for goods from non-EU countries destined for Gibraltar at designated customs posts in La Linea, Algeciras, and Sagunto in Valencia.  A subsidiary designated customs post will be designated in Portugal. Member States shall maintain separate accounts for non-EU goods destined for Gibraltar. The monies collected will be returned to Gibraltar.

By way of collection costs, Spain shall keep a percentage of the import duties collected, in accordance with the EU’s applicable retention rate.

After a three-year transition, the allowance system for individuals will disappear entirely. Individuals will be able to travel between Gibraltar and the EU with any quantity of goods for personal use, with no restrictions – the same rules that apply between EU member states.

An independent consultative body will assess whether the new arrangements are creating distortions in either direction.

TOBACCO

There will be an exchange of information to combat tobacco smuggling including identifying individuals.

A tobacco traceability system will be set up in keeping with EU law.

Traceability information on the movement of tobacco products in Gibraltar will be shared with Spain.

Monitoring mechanisms to exchange information with the EU competent authorities on tobacco products entering or leaving Gibraltar are to be established.

Additional measures such as picture warnings on packeting, the banning of tobacco for oral use, and cross-border distance sales will be adopted. 

Confiscated tobacco will be disposed of.

CASH CONTROL

Any amount of cash over €10,000 needs to be declared at the airport when entering and leaving Gibraltar, and details as to its purpose and provenance must be given. This is standard EU law.

ROAD TRANSPORT

Transport operations and road haulage operators will require a licence when operating within the EU.  The treaty details the requirements and obligations and the infringements that could lead to its revocation.

In the EU, the EU Member States would issue the licences.

The transport of goods within the  ‘Contiguous Frontier Zone’ (Campo de Gibraltar) will be possible.

Gibraltar driving licences will be recognised in that area.

Emergency ambulances and those dealing with serious medical cases can transfer patients beyond the Campo to listed establishments in Spain.

FRONTIER WORKERS

The treaty enshrines the rights of frontier workers with EU law replicated in this respect.

Family members will enjoy a right to equal treatment in the access to social and tax advantages.

Frontier workers made redundant will be entitled to unemployment benefits from the jurisdiction they were made redundant in.

As a frontier worker, you will have no access to social housing (as you will lose frontier worker status).

POSTED WORKERS

Gibraltarians posted to Spain (within the Contiguous Frontier Zone) for a limited period may be allowed to work there.

This is reciprocal.

LEVEL PLAYING FIELD COMMITMENTS

The treaty includes a level playing field chapter, based on the UK–EU TCA and going further in certain areas.

Gibraltar will align with the EU state aid regime by implementing relevant rules and guidance domestically, enforced by an Independent Gibraltar Body.

Gibraltar commits to maintaining and not regressing from high standards on tax transparency, anti-money laundering, and labour and social standards.

Gibraltar will maintain equivalence with EU environmental standards and reduce emissions, alongside expansive provisions on trade and sustainability.

Information on who benefits from State Aid needs to be publicly available.

Each party is to set up an independent authority or body to oversee the State Aid system.  It would have recovery powers for any unauthorised state aid.  The Specialised Committee on Economy and Trade would have the final decision on whether any party’s state aid is detrimental to the other.  Remedial measures would be introduced if this is proved to be the case.

FINANCIAL PROVISION

Both parties shall provide funding to promote cohesion between Gibraltar and the Contiguous Frontier Zone.

This will be used for matters such as training and employment.

MILITARY FACILITIES AND PERSONNEL

The operational autonomy of the UK’s military facilities in Gibraltar is preserved.

UK military personnel entering Gibraltar will not be subject to Schengen passport checks. The posting of military personnel and their families will not depend on Schengen border controls. The UK will continue to decide who serves in Gibraltar but Spain will be advised of the identity.

They will not acquire any right to permanent residence or domicile in the Schengen area.

Any military family member refused a residence permit by Spain will have a right to a residence permit issued by Gibraltar-limited to Gibraltar.

Military aspects of the airport are entirely out of scope. RAF Gibraltar is unaffected.

Goods for the MoD will be cleared at a designated Customs post.

Fuel for MoD vehicles will be free of duties and taxes.

Under the treaty, Spain imposes authorisation requirements and will assess and grant licence applications for the transfer of defence/military equipment-items on the Common Military List of the European Union - destined for the armed forces, the police or public authorites.

TERMINATION CLAUSE

The agreement can be terminated, in whole, or in part, if either party considers there’s been a serious and substantial breach in the treaty’s obligations. Before this happens, the Co-operation Council must meet with a view of seeking a timely and mutually agreeable solution.  It has 30 days in which to do this.

A serious and substantial breach would have to be exceptional, threatening peace and security, or one that carries international repercussions.  An act or omission that goes against the Paris Agreement on Climate Change would fall into this category.

The agreement can also be terminated by written notification through diplomatic channels and would cease to be in force a year after notification.

Furthermore, should Spain ask for its termination because of an adverse evaluation of the Schengen aspects of the treaty, the EU would comply.

Parties can also ask to be temporarily released from treaty obligations.  This would happen a week after notification, when border controls between Gibraltar and the EU would be re-instated.

The UK and Gibraltar would have its own separate concordat.