Guide to Latest Tax Agreement between Gibraltar and Spain

As part of the UK, Gibraltar now finds itself outside the EU after Brexit. In the light of that change in Gibraltar’s status, a new tax agreement with Spain was negotiated: it was signed on 4 March 2019 and has been in force since 4 March 2021. In this blog piece, we highlight the most important aspects of this agreement.

Legislation on Money Laundering

After Brexit, EU legislation is no longer applicable in Gibraltar. However, when it comes to preventative measures against money laundering, a guiding principle remains: Gibraltar is committed to maintaining legislation equivalent to that of the EU.

Tax Residence

Residence forms a fundamental part of taxation and the agreement lays out the following rules for individuals and companies.

Individuals

Tax residence is according to legislation in Spain and Gibraltar. In case of persons with residency in Spain and Gibraltar, the following rules apply:

Tax residency in Spain

The agreement rules that individuals are tax residents in Spain if:

A. If they spend more than 183 overnight stays in a calendar year in Spain. When determining the number of overnight stays, occasional absences from Spain and Gibraltar will be added to the period corresponding to the place where they spend the majority of their overnight stays.

B. The spouse (from whom they are not legally separated) or partner as well as the dependent children or relatives, have their usual residence in Spain.

C. The only permanent home at their disposal is in Spain.

D. Two thirds of the net assets that they own (directly or indirectly) are in Spain.

If there is any doubt in the application of the above four cases, individuals will be considered tax residents in Spain.

Tax residency in Gibraltar

To demonstrate tax residency in Gibraltar, individuals must prove beyond reasonable doubt that they have a permanent home in Gibraltar for their exclusive use. And that they spend more than 183 overnight stays in Gibraltar in a calendar year.

Any disputes over residency in either territory will be resolved by the Joint Coordination Committee.

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Companies and other legal entities

Companies and other legal entities, incorporated and managed in Gibraltar, or governed by its legislation, have tax residence exclusively in Spain in any of the following circumstances:

A. Most assets (owned directly or indirectly) are in Spain or consist of rights that can or should be exercised in Spain.

B. Most income earned in a calendar year comes from sources in Spain.

C. The majority of individuals in charge of management are tax residents in Spain.

D. Most rights to capital or equity, voting rights or participation in profits are under the direct or indirect control, either by individuals who are tax residents in Spain or by legal persons, entities or other instruments or legal forms linked to tax residents in Spain.

Note that clauses C and D do not apply if the company or entity was incorporated prior to November 16th 2018, the conditions in these clauses were met by December 31st 2018 and:

A. The company or entity has a fixed place of business through which the activity is carried out totally or partially in Gibraltar, with a sufficient number of employees, with the appropriate qualifications and sufficient ratio of operating expenses to its main income streams.

B. If it is subject to corporation tax in Gibraltar and pays said tax on profits at the approved rate (currently 10 or 20%).

C. If between incorporation and December 31st 2018 the company or entity carried out its activity in or from Gibraltar and has done so with no interruption or change of sector since January 1st 2011.

D. More than 75% of income for the financial year immediately prior to December 31, 2018 accrues and derives from sources in Gibraltar with its subsequent modifications.

E. Less than the percentage of income indicated below, with respect to the financial year immediately prior to December 31, 2018, comes from sources in Spain in the following cases:

• 5% if annual turnover is over €6 million.
• 10% if annual turnover is between €3 million and €6 million.
• 15% if annual turnover is less than €3 million.

Note that the Gibraltar tax authorities will provide their Spanish counterparts with the list of companies and entities meeting these conditions as of December 31st, 2018.

This list will contain information on the legal ownership and beneficial owners, as well as on the individuals responsible for the effective management of such companies or entities.

Relocation to Gibraltar After the Agreement

Companies and entities that transfer their residence to Gibraltar after this agreement will, in all cases, maintain tax residence exclusively in Spain.

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Elimination of Double Taxation

The Spanish and Gibraltar tax authorities will eliminate, where appropriate, double taxation in accordance with the provisions in their internal legislation.

Administrative Cooperation in Tax Matters

The agreement lays out the terms for cooperation between Gibraltar and Spain in tax matters for individuals, companies, cross-border workers and employees.

Definition of employee

For the purposes of the agreement, information exchange for employees applies to employed people residing in Gibraltar or individuals who carry out business or professional activities in Spain in municipalities located within a radius of 80 km from Gibraltar.

Information exchanged

The type of information liable to be exchanged includes execution and collection of taxes of all kinds, required on behalf of the Parties and their territorial or administrative subdivisions, including local councils.

This cooperation includes:

• The exchange of information, automatic, spontaneous or on request, including simultaneous tax inspections or joint controls and participation in tax inspections abroad.
• Assistance in tax collection.
• The delivery or transfer of documents.

Type of Information from Gibraltar to Spain

The tax authorities in Gibraltar will inform their Spanish counterparts of the following:

A. Annual information on workers registered in Gibraltar as residents in Spain, specifically detailing all the extremes of their underlying employment relationship or of any business or professional activity carried out by said workers, including details regarding the duration, economic terms and the employer.

B. Semiannual information on ships, aircraft and vehicles registered in Gibraltar and belonging to Spanish tax residents.

C. Free and direct access to entries in the Gibraltar Company Registry and the Gibraltar Land Registry.

D. Direct access to public information about beneficial owners or companies, legal persons, partnerships and foundations.

E. Direct access to public information trustees, beneficiaries and assets of all types of trusts, as well as other instruments or legal forms established or administered in Gibraltar when the trustees, protectors or beneficiaries are tax residents in Spain or the assets of any type of trust are located in Spain.

Timeline for Information Exchange

Gibraltar employees residing in Spain – within four months of the date of the validity of the agreement.

Ships, aircraft and vehicles registered in Gibraltar by Spanish tax residents – twice a year on March 31st and September 30th. Information exchanged in March is for the period July-December of the previous calendar year and the information exchanged in September for January-June of the current year. The information dates from January 1st 2014.

Frequently Asked Questions

Is Gibraltar still on Spain’s list of tax havens?

No. Orden HAC/649/2026, de 21 de junio, published in the BOE on 27 June 2026, removed Gibraltar from the Spanish list of non-cooperative jurisdictions with effect from 28 June 2026, ending a designation in place since 1991. A transitional rule applies: for taxes whose tax period had not ended on that date the previous list still applies, so corporate income tax for 2026 continues to treat Gibraltar as non-cooperative until 31 December 2026. Taxes with no tax period, such as transfer tax and inheritance tax, use the new list from 28 June 2026.

When was the Spain-Gibraltar tax agreement signed, and when did it take effect?

The International Tax Agreement between the United Kingdom, in respect of Gibraltar, and Spain was signed on 4 March 2019 and entered into force on 4 March 2021. It remains in force.

Is this a double taxation treaty between Spain and Gibraltar?

No. Its purpose is narrower: tax residency rules for individuals and legal entities, administrative cooperation and exchange of information, and tax good governance. Where double taxation does arise, the agreement leaves the Spanish and Gibraltar authorities to eliminate it under their own internal legislation.

When does the agreement treat an individual as tax resident in Spain rather than Gibraltar?

In any of four cases: more than 183 overnight stays in Spain in a calendar year; a spouse from whom they are not legally separated, or a partner, or dependent children or relatives, having their usual residence in Spain; the only permanent home at their disposal being in Spain; or two thirds of their net assets, held directly or indirectly, being in Spain. Where the application of those four cases is in doubt, the individual is treated as tax resident in Spain.

What do I have to show to be treated as tax resident in Gibraltar?

You must prove beyond reasonable doubt that you have a permanent home in Gibraltar for your exclusive use, and that you spend more than 183 overnight stays in Gibraltar in a calendar year. Any dispute over residency in either territory is resolved by the Joint Coordination Committee.

When is a Gibraltar company treated as tax resident in Spain?

A company incorporated and managed in Gibraltar, or governed by its legislation, has tax residence exclusively in Spain if most of its assets are in Spain or consist of rights exercisable in Spain, if most of its income in a calendar year comes from Spanish sources, if the majority of the individuals in charge of its management are Spanish tax residents, or if most rights to its capital, equity, votes or profits are controlled by Spanish tax residents. The last two of those tests do not apply to entities incorporated before 16 November 2018 that met the conditions by 31 December 2018 and satisfy the agreement’s substance requirements.

What happens if a company moves its residence to Gibraltar now?

Companies and entities that transfer their residence to Gibraltar after this agreement maintain tax residence exclusively in Spain, in all cases.

What information does Gibraltar send to the Spanish tax authorities, and how often?

Annual information on workers registered in Gibraltar who are resident in Spain, covering the terms, duration and employer of the employment or professional activity; twice-yearly information, on 31 March and 30 September, on ships, aircraft and vehicles registered in Gibraltar and belonging to Spanish tax residents, with data going back to 1 January 2014; and direct access to the Gibraltar Company Registry and Land Registry, to public information on beneficial owners, and to information on trustees, beneficiaries and trust assets connected to Spain.

Does the July 2026 EU-UK treaty on Gibraltar change how I am taxed?

No. That treaty deals with the frontier rather than with taxation, and the 2019 tax agreement continues to govern tax residency and information exchange. If you live in Spain and work in Gibraltar, both matter to you for different reasons.

Cross-border tax between Spain and Gibraltar is decided on the facts of your own residency. Call +34 919 499 342 or email marialuisa@costaluzlawyers.es and speak to an independent lawyer.

Get Expert Help

Tax matters are complicated, particularly when it comes to tax residency. To avoid problems and expensive mistakes, use the services of the experts to ensure you comply with all tax regulations.

The team at Costaluz Lawyers know everything there is to know about Spanish and international tax rules and regulations – get in touch for your free consultation now.

Reviewed by María Luisa de Castro, CEO at CostaLuz Lawyers — Updated 2026

This is general information, not definitive legal advice — every case requires individual analysis.

If you are weighing up buying property in Spain specifically because you commute to work in Gibraltar, see how the property purchase and your tax residency connect.