Gibraltar – A political agreement between the UK, Gibraltar, and Spain could reshape cross-border travel and immigration policy on the Rock — potentially granting Spain a say in who gets to live there.
As part of ongoing negotiations, the three parties have outlined a draft treaty aimed at integrating Gibraltar into the EU’s Schengen zone. If finalized and ratified, this agreement could eliminate the physical border fence (known locally as La Verja), streamline cross-border movement, and introduce shared immigration oversight — including Spanish input on residence permits.
What’s in the Draft Agreement?
According to Gibraltar’s Chief Minister Fabian Picardo, the proposed deal includes a mechanism where new and renewed residence permits in Gibraltar would be screened through Schengen systems. Because Spain is the bordering Schengen state, it would be consulted before such permits are issued.
“The treaty will require us to carry out a further consultation with the Schengen States before we issue or renew residence permits,” Picardo told Parliament. “We would not want a person who fails to pass such a high threshold test to be residing in Gibraltar.”
However, officials stress this provision is still part of a draft — not yet a legally binding clause. The final version could change during treaty negotiations, which are expected to conclude by 2026.
Potential Benefits If Ratified
If the treaty is approved by all parties:
- Border checks would be modernized: Manual passport controls at La Verja would be replaced with automated e-gates and a new joint inspection area.
- Dual policing systems would be introduced: Spanish police would handle Schengen entry controls, while Gibraltar authorities would maintain UK-side security.
- New customs and tax agreements: A “transaction tax” could be introduced to combat smuggling while preserving Gibraltar’s retail competitiveness.
These measures are designed to maintain ease of movement for the 15,000 people who cross the border daily — many of whom commute from Spain for work.
Sovereignty Concerns Addressed
Picardo emphasized that British sovereignty over Gibraltar remains unchanged. He quoted a clause in the draft agreement explicitly reaffirming territorial control:
“Not one grain of our land. Not one drop of our water. Not one breath of our air.”
UK and Gibraltar officials reiterated that the agreement is being developed “without prejudice” to any sovereignty claims.
Why Now?
Gibraltar left the EU alongside the UK in 2020, but its border status remained unresolved. The EU’s upcoming biometric Entry/Exit System, set to go live in October 2025, would impose stricter border checks unless an agreement is in place.
The latest political breakthrough — announced on June 11, 2025 — was welcomed by UK Foreign Secretary David Lammy as “historic,” but legal experts warn that the details still need to be codified in a formal treaty.
The proposed agreement offers a potential path to smoother cross-border movement, expanded Schengen cooperation, and continued British sovereignty — but it remains uncertain whether it will pass legislative hurdles in the UK, Gibraltar, and Spain. For now, passports and queues remain part of life at the Rock’s frontier, as diplomats continue their negotiations.
