A major breakthrough was achieved on June 11, 2025, as the United Kingdom, Spain, and the European Union announced a political agreement to remove border checks between Spain and Gibraltar. This deal is designed to secure long-term prosperity for both Gibraltar and the surrounding region by eliminating physical barriers, checks, and controls on people and goods moving between Gibraltar and Spain, while maintaining the integrity of the EU’s Schengen area, Single Market, and Customs Union.

Historical Background

Gibraltar, a British overseas territory located at the southern tip of the Iberian Peninsula, has long been a point of contention between Britain and Spain. The territory was ceded to Britain in 1713 under the Treaty of Utrecht. Despite its small size, Gibraltar holds strategic importance due to its location at the entrance to the Mediterranean. In the 2016 Brexit referendum, 96% of Gibraltar’s residents voted to remain in the EU, reflecting the territory’s close ties with the European Union and its reliance on fluid cross-border movement.

After Brexit, arrangements for Gibraltar were not included in the main UK-EU withdrawal agreement, leaving its future relationship with the EU unresolved. Temporary measures were put in place to keep the border open, but a permanent solution required years of negotiation.

Details of the Agreement

The new agreement establishes a system of dual border checks at Gibraltar’s port and airport, to be conducted jointly by Gibraltar and Schengen authorities. At the land border between Gibraltar and the Spanish town of La Línea, all checks will be removed, allowing thousands of daily commuters and travelers to cross freely in both directions. For the EU, Spain will carry out full Schengen checks, while Gibraltar will continue its own checks for the UK. Arrangements for visas, permits, and enhanced police cooperation are also included.

For goods, the deal sets out principles for a future customs union between the EU and Gibraltar. This will eliminate checks on goods moving across the border and strengthen cooperation between customs authorities. Agreements on indirect taxation, such as tobacco duties, are intended to prevent market distortions and support regional prosperity.

The agreement also includes commitments on state aid, taxation, labor standards, environmental protection, anti-money laundering, and transport. Rights of frontier workers and coordination of social security systems are protected. Additionally, a financial mechanism will be established to promote regional cohesion, training, and employment.

With the political agreement reached, negotiators will now work to finalize the legal text for signature and ratification, aiming to provide lasting certainty for the people and businesses of Gibraltar and the surrounding region.