Time running out to resolve Gibraltar border issue

While most of Europe has moved on from Brexit negotiations, they remain ongoing and unresolved in Gibraltar. 

With the new EES Schengen border controls due to come into effect on 10 November, failure to reach an agreement before then could severely impact the 15,000 people who cross the Gibraltar/Spain border each day.

Many Gibraltar residents (Gibraltarians and UK nationals) work in Spain, while some Andalucians work in Gibraltar.  Until now, border controls have been relatively relaxed while Brexit treaty negotiations continued, enabling people to easily commute across the border.

This could all change from 10 November, when the new EU Entry Exit System (EES) is due to come into force across most of the Union.   If no Brexit agreement is reached with British Overseas Territory before then, a hard border is likely to be imposed at the crossing point, ending the freedom of movement many people have relied on.

Gibraltarians and UK nationals residing there would need to meet the strict Schengen requirements to enter Spain, in the same way as Britons visiting Spain from the UK.  This means they could be subject to the 90-in-180 day rule, significantly restricting how much time they can spend in Spain each year.   They may also face questions at the border about why they are entering Spain

Gibraltar has also previously said that it ‘would enhance its own border control infrastructure’ if Brexit negotiations fail.

The EES rules will not apply to EU nationals or those with long-stay residence visas in Spain.

September meeting

High level talks in Brussels on 19 September ended without reaching an agreement.   All four parties participated in the talks:  Chief Minister of Gibraltar Fabian Picardo; Spanish Minister for Foreign Affairs José Manuel Albares; European Commission Vice-President Maros Sefcovic,

And UK Foreign Secretary David Lammy.  The official statement following the meeting read:

“The meeting reaffirmed their shared commitment to concluding an EU-UK Agreement to bring confidence, legal certainty, and stability to the people of the whole region, while safeguarding all parties’ legal positions.”

After the meeting, Sr Albares told reports that good progress was made on fundamental aspects, including the freedom of movement of people and goods, but that they still had technical work to do on practical aspects.

He insisted that Spain was “totally in favour” of reaching agreement and that freedom of movement will be beneficial for Gibraltar and the 300,000 Andalusians in the Campo de Gibraltar.    However, he added:

“But at the same time, we need to guarantee that the controls in the Schengen space in respect of people, and in the Customs Union for goods, are respected and applied exactly in the same way as in the rest of the Schengen zone and the Customs Union.”

According to Sr Albares, all those involved in the meeting agreed to redouble their efforts in the coming weeks to get the issues resolved.  But for now, those who cross the border regularly remain non the wiser about how future border controls could impact their lives.

While all parties seen to want to reach agreement, according to reports there are some fundamental differences that neither side will compromise on.   For example, Spain wanting to have uniformed guards at the border and able to freely move between the two territories.

EES and ETIAS

The European Union Entry and Exit Scheme is scheduled to start 10 November and will register non-EU nationals each time they cross the external borders of participating European countries.   Holders of residence permits and long-stay visas will be exempt.

It will automate border control procedures and replace passport stamping, by collecting personal data provided by the traveller each time they pass the border and store this information together with the date and time of their entry or exit. This system will make it easier to identify travellers who have no right to enter the zone or who have over-stayed in the participating countries.

The European Travel Information and Authorisation System (ETIAS) is expected to start six months later.  Once in operation, affected travellers, such as UK nationals who don’t have an EU residence visa, will need to obtain an online permit in advance of travelling to the EU.

Becoming resident in Spain

The answer for some UK nationals living in in Gibraltar may be to become resident in Spain.

If you are weighing this up, then get in touch with our local advisers who can guide you through becoming resident in Spain at the same time as minimising your tax burden.  We’ve had an established office in Andalucía for over 35 years and have in-depth understanding of the Spanish tax regime and the compliant tax planning opportunities here.

Contact us for personalised, strategic financial planning solutions.