Nearly a decade after the Brexit referendum, one of its thorniest unresolved issues has finally found a breakthrough: the status of Gibraltar, the small but symbolically significant British overseas territory at the southern tip of Spain.
After a long period of uncertainty following Brexit, the UK, Spain, the EU and Gibraltar reached a political agreement in June 2025 on Gibraltar’s post-Brexit future. It’s a major milestone that ends years of complex negotiations and secures Gibraltar’s future while preserving British sovereignty.
When the UK voted to leave the European Union in 2016, Gibraltar voted by a staggering 96% to remain. Despite its very high ‘Remain’ vote, Gibraltar’s EU membership was tied to the UK’s, so it automatically exited the EU when the UK formally left on 31 January 2020.
Unlike other parts of Britain, Gibraltar shares a land border with the EU, and roughly 15,000 people (many of them Spanish workers) cross it daily for work. Without a tailored post-Brexit arrangement, Gibraltar faced the threat of a hard border that could choke its economy and disrupt daily life. For years, the border issue was a key sticking point in the negotiations, and the question had remained unresolved. In this context, the June 2025 agreement marks a highly significant development.
Here’s what the historic agreement means, and why it matters.
What the Deal Includes
The agreement, announced in Brussels on 11 June, centres on the free movement of people and goods between Gibraltar and Spain, as well as other key principles:
- No Hard Border: One of the most important elements is the elimination of physical checks on people and goods at the Gibraltar-Spain land border. This ensures that the 15,000 daily commuters and businesses that depend on cross-border flow won’t face disruption.
- Dual Checks at Gibraltar Airport and Port: Travellers arriving in Gibraltar will go through both UK and Spanish passport checks. This is similar to the system in place for Eurostar passengers at London’s St Pancras station, where travellers pass through both British and French passport control before boarding international trains. Spanish authorities will carry out Schengen Area checks on behalf of the EU, while Gibraltar authorities will continue to conduct their own checks.
- Sovereignty: A cornerstone of the agreement is that UK sovereignty over Gibraltar remains unchanged. British military facilities will also remain fully autonomous.
- Goods and Customs: The deal includes frameworks for customs alignment, indirect taxation reform (notably on tobacco), and anti-smuggling measures.
- Other Areas: It also includes provisions on frontier workers’ rights, environmental cooperation, transport, anti-money laundering and social security coordination.
Why the Agreement Works for All Parties
UK
- Preserves full sovereignty and military autonomy.
- Shows it can strike practical post-Brexit agreements.
- Boosts relations with both the EU and Spain.
Gibraltar
- Maintains economic lifeline through frictionless border.
- Gains long-term legal and regulatory certainty.
- Keeps British sovereignty intact.
EU and Spain
- Protects the integrity of the Schengen Area.
- Reduces risk of smuggling through tax alignment.
- Supports regional stability in southern Spain.
Looking Ahead
The agreement doesn’t resolve every Brexit issue, but it clears one of the most complex. It protects the day-to-day lives of people in Gibraltar and southern Spain, supports economic continuity, and preserves sovereignty while enabling cooperation. As the agreement moves into the legal drafting phase, with ratification on the horizon, all parties appear committed to seeing the deal through. In a geopolitical climate often defined by division, the Gibraltar agreement is a rare and welcome example of constructive compromise, and a reminder that pragmatism and partnership can still prevail.
Last Updated on July 11, 2025 by Vanessa Kingwell
