Entry into force of International Agreement on Taxation and Protection of Financial Interests regarding Gibraltar between Spain and United Kingdom

Spain completed the formalities for its ratification after its signing was authorised by the Lower House of Parliament ad referendum at an extraordinary session on 15 July last year, and by the Upper House at its session on 23 September 2020.

The Agreement seeks to eliminate tax fraud and the prejudicial effects deriving from the characteristics of the fiscal regime of Gibraltar. Clear rules are also established to more easily resolve the tax residency conflicts of natural persons and thus avoid the use of companies subject to the fiscal regime of Gibraltar by tax residents in Spain or to carry on economic activities in Spain.

The Agreement is thus an effective tool in the fight against tax evasion and creates the necessary instruments to that end. To date, no legal instrument of this nature existed to defend the interests of the Spanish Treasury.

As indicated in the text of the Agreement, this does not in any way alter Spain's position on sovereignty or jurisdiction regarding Gibraltar.

Non official translation