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Sun, 12 Jul 2026

Sun, 12 Jul 2026 New era for Gibraltar with removal of 118-year-old border controls with Spain

It is hoped that free movement between the UK territory and Spain will provide an economic boost.
The new arrangement means that goods sold in Gibraltar will now need to comply with EU regulations, and a new transaction tax of 15% (rising to 17%) will be introduced to replace import duty. This has raised concerns among some businesses about increased costs and competitiveness. However, many see the removal of the border as a major opportunity for growth and development in Gibraltar. The territory's chief minister, Fabian Picardo, has described it as "a new dawn" for Gibraltar's relationship with Spain and the EU, and says it will be "huge for human relations, huge for business, huge for frontier workers". The removal of the border is also expected to boost tourism in Gibraltar, which has been hit by the ongoing Brexit uncertainty. Many Gibraltarians and residents of La Línea de la Concepción have welcomed the move, with some saying it will help to improve living standards and create new jobs. However, others have raised concerns about the potential impact on Gibraltar's economy and competitiveness. John Isola, managing director of Anglo Hispano Company, says that while the removal of the border is a "good compromise", the new regulations and tax regime could still have a negative impact on business. The removal of the border is just one part of a broader effort to modernize and improve Gibraltar's economy. The territory has been working closely with the UK and EU governments to implement new economic policies and attract investment.