The UK–EU agreement on Gibraltar provides clarity after years of uncertainty. While border arrangements and customs rules will change, Gibraltar’s company and trust legislation remains intact. This guide explains what the treaty means in practice for advisers, businesses and private clients.
February 20, 2026
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The UK–EU Agreement on Gibraltar
What the treaty means in practice.
For advisers and clients with exposure to Gibraltar, the UK–EU agreement marks a significant turning point. It provides clarity after years of uncertainty and establishes a framework that will shape how Gibraltar functions as a place to live, work and do business.
Beyond the headlines, the practical question is straightforward. What changes in reality, and what remains the same for those using Gibraltar for corporate, fiduciary and private client structures?
This guide explains the core elements of the agreement, outlines where its impact will be felt most directly, and considers what it means for those who rely on Gibraltar’s regulatory and legal framework.
A defining moment for the jurisdiction
The agreement is the most significant development in Gibraltar’s recent history. Announced last year, negotiations have now concluded and focus has shifted to implementation. The target date for entry into force is 10 April 2026, aligning with the EU Entry Exit System.
Absent a treaty, the risk of a restricted border would have posed serious economic and social challenges. Approximately 15,000 cross-border workers enter Gibraltar daily. Maintaining fluid movement was therefore central to protecting stability and continuity.
Movement of people and goods
The treaty establishes a Gibraltar–EU customs arrangement and removes checks and controls on people moving between Gibraltar and Spain. This addresses a long-standing friction point and reduces uncertainty for businesses dependent on cross-border labour.
The framework extends to goods. Imported goods will be EU compliant, and a transaction tax will apply to most imports. The initial rate is set at 15 percent. Although it is not VAT, it is intended to align over time with the lowest VAT rate applied by any EU member state, currently 17 percent.
These changes are expected to influence retail pricing and supply chains. Implementation details remain subject to refinement.
What will not change
From a structuring perspective, the position is clear. There are no changes to Gibraltar legislation governing trusts or companies.
For many corporate and private client arrangements, especially where regular physical presence is not required, the direct legal impact is limited. The jurisdiction’s regulatory framework, company law and trust law remain intact. However, the removal of border delays may shift perception. Accessibility influences behaviour, and improved movement may increase engagement with the jurisdiction.
Visibility and competitive positioning
The agreement has increased Gibraltar’s visibility at an important time. Competing jurisdictions have historically invested heavily in promotion. Gibraltar has often relied more on reputation and word of mouth.
Ease of access is a differentiator. Gibraltar combines air and sea connectivity with a 24-hour land border into Spain. From there, Europe is directly accessible. This stands in contrast to island jurisdictions that require air or sea travel for all access.
Combined with established regulation and a compact professional ecosystem, improved freedom of movement strengthens Gibraltar’s overall proposition.
Connectivity and regional infrastructure
As part of the new framework, EU airlines may apply for routes to Gibraltar. While a rapid expansion of air links is unlikely in the immediate term, regional connectivity is already strong.
Malaga airport, approximately 75 miles away, is Spain’s fourth busiest airport and serves more than 150 destinations, including direct routes to North America, the Middle East and Africa. This broader infrastructure supports Gibraltar’s international positioning.
Transitional challenges
Short-term challenges are expected, particularly within the retail sector following the introduction of the transaction tax. Discussions are ongoing and implementation timelines are tight.
At the same time, negotiations have addressed the sectors most immediately affected. Longer-term opportunities arising from the treaty may become clearer once the framework is fully operational.
Why this matters
For advisers, the treaty reduces jurisdictional uncertainty and strengthens Gibraltar’s practical accessibility. This supports client conversations around continuity, operational feasibility and cross-border coordination.
For private clients and businesses, the agreement reinforces Gibraltar’s stability while maintaining its existing legal and regulatory foundations.
The key point is proportionate interpretation. The treaty is significant, but it does not alter the core legal architecture on which Gibraltar companies and trusts are built.
UK-EU Treaty: Key takeaways
Let’s Talk
Acquarius continues to monitor developments closely. The firm works with advisers and clients to interpret jurisdictional change responsibly and to ensure that structures remain appropriate, well governed and aligned with long-term objectives.
To discuss how the UK–EU agreement may affect a specific arrangement, or to request a Gibraltar briefing for advisers or clients, please contact the Acquarius team.
Email: info@acquarius.gi
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