A British overseas territory on the southern tip of the Iberian peninsula, bordering Spain. It formally passed into British hands under the Treaty of Utrecht in 1713.
Some 15,000 workers cross the land border with Spain each day. One-third of British cars are registered via Gibraltar's insurers. The territory had a zero VAT rate before its 2026 treaty with the EU.
Gibraltar was not covered under the 2021 British-EU trade agreement, leaving it in limbo. An EU deadline of April 10th 2026 mandating biometric-data collection at borders spurred negotiators to a deal. Under the treaty Gibraltar enters a customs arrangement with the EU allowing people and goods to move freely across the land border. Spanish police will check arrivals through Gibraltar's airport, in a manner compared by the Foreign Office to French checks of Eurostar travellers at St Pancras. EU officials will clear imported goods entering Gibraltar under a "tailored" customs union. The zero VAT rate will be replaced by a transaction tax that rises over three years to the EU's minimum VAT rate of 17%.
Spain, which calls the border la verja (the fence), plans to tear it down. British and Spanish authorities will jointly manage the airport. Spain will be able to refuse Gibraltarian residency applications.
Older residents recall a 13-year blockade started by Spain's dictator, Francisco Franco, in 1969, which strained the economy.
The chief minister is Fabian Picardo, who has described the post-Brexit treaty as trading "short-term pain for long-term gain". British Conservatives and Reform UK have criticised the deal as a surrender of sovereignty.
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