Gibraltar & Europe

On 14 July 2026, Gibraltar embarked on an important new chapter in its relationship with Europe, as the United Kingdom and European Union formally signed the Gibraltar treaty, which outlines the future interaction of Gibraltar with the EU. This significant agreement followed extensive negotiations post-Brexit and aims to provide long-term certainty for Gibraltar's economy, businesses, and its relationship with neighbouring Spain. 

One of the most notable aspects for Gibraltar is the removal of routine controls at the land frontier with Spain, enhancing the fluidity of cross-border movement for people. The agreement also introduces a bespoke customs arrangement designed to simplify the movement of goods, thus avoiding routine customs checks at the frontier.

The Gibraltar treaty significantly reshapes Gibraltar's post-Brexit relationship with the European Union, solidifying its standing as a business jurisdiction that is oriented towards Europe. For businesses established in Gibraltar, this is particularly crucial. Gibraltar maintains its unique British, English-law corporate environment while now enjoying a more practical relationship with the European Union compared to the immediate aftermath of Brexit.

It is important to note that the Gibraltar treaty does not make Gibraltar a part of the European Union nor does it change British sovereignty over the territory. Instead, it provides a specific framework that governs Gibraltar's relationship with the EU, especially regarding the movement of people and goods, customs arrangements, and cross-border cooperation.

This new arrangement enhances Gibraltar's appeal for businesses operating across European markets, emphasizing its tax advantages under the Gibraltar tax position, alongside its established English-law corporate framework and its unique territorial tax system. 

For those considering non-resident company formation in Gibraltar, we handle the entire process from preparing the company application to acceptance, incorporation, and banking. 

Contact Gibraltar Corporate Partners today to discuss how to establish a Gibraltar company and leverage its new position in relation to Europe.