The Effect of Brexit on Gibraltar
When speaking about Brexit, we often leave out one significant country and probably deciding factor for the relations between the UK and the EU. The country in question is Gibraltar. The small British territory located south of Spain. Gibraltar’s status has always been special, and the relation between its neighbor Spain and the region was complicated even before Brexit. Now with the UK leaving the EU, there might be severe consequences for the country, but also new opportunities that may arise from special Status Gibraltar might be taking over. The effect of Brexit on Gibraltar is an important issue.
Back in 2016, the vast majority of the voters in Gibraltar voted to stay in the EU, fearing those possible consequences and complications. However now Gibraltar has to prepare for the time after the UK parts as a member of the EU. We will shed a little light into that complicated situation and help you to untangle some Brexit strings. You might find new opportunities arising for yourself and your business.
Brexit Negotiations and Gibraltar – How does it Look
The outcome of the Brexit negotiations directly affects Gibraltar. However, they have no say in the talks themselves. Many have mentioned the country in negotiations, and some EU-countries called the territory a British colony. Some comments accused the UK and the EU of ignoring Gibraltar in the negotiations and focusing merely on Northern Ireland.
Key issues that are discussed to determinate the future of the country are Sovereignty, movements over the Border to Spain (for goods and people) and the status of the local finance industry.
When it comes to Sovereignty, Spain and the UK agreed not to hold Gibraltar as a “hostage” of the Brexit negotiations. There are plans to sign off a bilateral agreement between the UK and Spain concerning the Effect of Brexit on Gibraltar. It seems like talks are progressing. However, the situation of the territory is historically complicated and stays that way.
In terms of movement, Gibraltar such as the UK is outside of the Schengen zone. However, many residents in the Spanish town La Linea work in Gibraltar and cross the border every day. How simple crossing the border will be after the Brexit due date has still to be negotiated.
The Government of Gibraltar told a European Parliament committee in May that the finance industry in Gibraltar is essential. At the moment they are fearing of losing out on business with the EU after Brexit. However, the current state might lead to benefits for UK costumers and a possible special status for the finance industry in Gibraltar.
What Does the Effect of Brexit on Gibraltar Mean for You?
Like many aspects of the Brexit situation, the status of Gibraltar is uncertain. However, the Effects of Brexit on Gibraltar might bring benefits to British businesses. It is likely that Gibraltar would be given more access to the UK market. Some existing regulations could be lifted.
Now might be the right moment for opening a business in Gibraltar. The opportunities are opening up at, and with the position very close to the EU, it is possible that there is a gateway to the EU from a post-Brexit Gibraltar.
It is smart to have one foot in the door before the negotiations are final. Established businesses and residencies prior to Brexit often tend to be treated differently. Malta is one example.
We will keep you updated about recent developments and opportunities Brexit offers. Feel free to contact us with any questions you might have.