The UK and Spain have struck a “historic” deal over Gibraltar’s future, ending the long-running dispute over the territory after Brexit and easing the movement of people and goods across the border with Spain.
The Foreign Office said the agreement “resolves the last major unresolved issue from Brexit”, while the Spanish foreign minister said it brought down “the last wall” on the continent.
The deal will lead to the introduction of Eurostar-style dual passport checks at Gibraltar’s airport and eliminate checks on people and goods crossing the land border between Spain and Gibraltar.
The agreement does not affect Britain’s sovereignty over Gibraltar, and the Foreign Office said it included a clause to this effect agreed by all sides. British military facilities in Gibraltar will remain operationally autonomous.
However, it will apply Schengen rules to Britons arriving in Gibraltar who are not resident there. This means they could be turned away at the border if they have already spent 90 days in the Schengen zone over a 180-day period.
David Lammy, the UK foreign secretary, said the deal was “a practical solution after years of uncertainty” and that the UK’s commitment to Gibraltar “remains as solid as the Rock itself”.
José Manuel Albares, the Spanish foreign affairs minister, and Fabian Picardo, the chief minister of Gibraltar, hailed it as a “historic agreement” in posts on Bluesky and X.
Lammy, Picardo and Albares unveiled the deal in Brussels on Wednesday afternoon after talks by ministers from Britain and Gibraltar earlier in the day.
Talks about the border have been held on and off since Britain exited the European Union in 2020, which left Gibraltar outside the EU customs union and without guaranteed freedom of movement.
An estimated 15,000 people cross the land border every day, including thousands of workers who live in Spain but work in Gibraltar.
At present, Gibraltar residents can cross using residence cards without having their passports stamped, and Spanish citizens can cross using a government ID card. The deal aims to prevent a hard border from being imposed under new EU rules.
The agreement establishes a system where British and Spanish border officers will carry out passport checks at Gibraltar’s port and airport. This will mirror the system in place for Eurostar travellers at St Pancras station in London, where travellers go through British and French passport control before boarding trains to the continent.
Spanish border police, based at Gibraltar’s port and airport, could refuse access to a UK citizen who has broken Schengen rules, such as staying longer than 90 days during a 180-day period without a visa. This may prove unpopular with rightwing opposition parties in the UK.
At a press conference in Brussels on Wednesday afternoon, Albares called the agreement a new beginning in relations between Spain and the UK that brought down “the last wall” on the continent.
“With this agreement, the barrier will disappear. That’s the last wall on continental Europe, and we will guarantee free movement of persons and goods. Gibraltar will be linked to the Schengen area, and Spain will control entry and exit,” he said.
Keir Starmer spoke with Picardo to congratulate him, a spokesperson for the prime minister said.
They added: “He thanked him for his years of hard work, commitment and leadership to reach an agreement, adding that it was fantastic to see that it had been profusely welcomed by all sides.
“Both agreed that this would unlock a secure future for the people and businesses of Gibraltar, allowing them to plan for the long-term while protecting British sovereignty.”
The Spanish prime minister, Pedro Sánchez, congratulated Starmer, as “his government had succeeded where others had failed”.
No 10 added: “Both leaders also agreed that this development unlocks huge opportunity to advance the bilateral relationship between the UK and Spain, on behalf of the British and Spanish people.”
Priti Patel, the UK’s shadow foreign secretary, said: “Gibraltar is British, and given Labour’s record of surrendering our territory and paying for the privilege, we will be reviewing carefully all the details of any agreement that is reached.”
Gibraltar has made concessions on taxation, including on tobacco. Spain has been calling for the territory to stop exempting tobacco from VAT amid EU concerns about smuggling.
Maroš Šefčovič, the EU commissioner in charge of UK relations, told reporters that the agreement was a “truly historic milestone for the European Union, including Spain, as well as for the United Kingdom”.
Brokered less than one month after the EU-UK summit in London last month, Šefčovič said the latest deal reinforced “a new chapter in our [EU-UK] relationship”, adding that there was “no alternative given today’s realities and challenges”.
Negotiators will now focus on finalising the legal text to prepare it for ratification.
Gibraltar is a British overseas territory on the southern tip of the Iberian peninsula. It has been ruled by Britain since 1713 but is self-governing in all areas except defence and foreign policy.
Spain claims sovereignty over the territory, but Gibraltar’s 1969 constitution states there can be no transfer of sovereignty to Spain against the wishes of locals. In a 2002 referendum, 99% of people in Gibraltar rejected a proposal to share sovereignty with Spain.
