The European Commission and the UK Government have finalised a treaty on the status of Gibraltar after four years of intense negotiations, coming into effect from Wednesday.
The deal, signed in Brussels on Tuesday, completes the legal framework of the relations between the EU and the UK/Gibraltar following Brexit, after four years of negotiations.
"It has taken four years of patient, complex negotiation, but the outcome speaks for itself," said European Commissioner for Trade Maroš Šefčovič on Tuesday.
"Shared prosperity, closer cooperation, and no more barriers for some 15,000 people who cross between Spain and Gibraltar every single day. It is a very special feeling to see a fence come down," he further stated.
What was agreed?
According to a draft text of the agreement, both Spanish and UK police forces will carry out border checks at Gibraltar’s port and airport to enforce Schengen border controls from this Wednesday, 15 July.
Under the deal, Gibraltar is not formally joining Schengen and keeps control of immigration, policing, and justice.
However, in order to allow people and goods to move freely between Spain and Gibraltar, a joint Gibraltar-EU customs union has been created, linked to Schengen rules, with all physical checks removed.
There are also provisions to protect the rights of frontier workers who live in Spain and work in Gibraltar (and vice versa). Gibraltar residents and UK military personnel will also get exemptions from some Schengen and EU Entry/Exit System requirements.
Gibraltar, seen from the famous "Rock". Credit: Unsplash
In other words, Gibraltar residents can now cross to Spain using residence cards while Spanish citizens can cross using a government ID card.
Finally, the deal also aims to create a level‑playing‑field framework on tax, state aid, labour, environment, and transport.
Gibraltar was left out of the UK-EU Trade and Cooperation Agreement following Brexit, creating the prospect of a "hard border" for the 15,000 people – over half of Gibraltar’s workforce – who cross the land border between Spain and Gibraltar every day.
This was said to have been a threat to secure the future prosperity of the whole region. A special joint UK–EU fund to support Gibraltar and the neighbouring Spanish region was also included in the treaty.
The UK Government confirmed the treaty was being supported by the Gibraltar Chief Minister Fabian Picardo, following a political agreement on key principles of the EU-UK Agreement in June 2025 with the Spanish and UK foreign ministers.
"A cherished part of the British family, its economic future and thousands of jobs depended on finding a practical solution to the challenges created by Brexit," said the UK’s Europe Minister, Stephen Doughty MP, on Tuesday.
"Our support for Gibraltar remains as solid as the Rock. This agreement opens a new chapter with the EU and Spain, supporting jobs, growth and prosperity on both sides of the border."
