- Gibraltar will implement a 15 percent sales tax on goods to prevent unfair competition with Spain.
- The tax is part of a post-Brexit agreement to join the Schengen zone and link with the customs union.
- Gibraltar has three years to apply the 15 percent transaction tax as per the agreement.
- The agreement will remove the border between Gibraltar and the Iberian peninsula.
- Gibraltar will join the Schengen zone, allowing free movement but not work or settlement rights in the EU.
- Passport checks will be conducted by British and Spanish border guards at ports and airports.
- Spanish customs will inspect goods entering Gibraltar via the land border.
- Gibraltar will eventually join a customs union with the EU, requiring further agreement.
- Spain’s foreign minister supports the tax convergence for fair competition.
- Concerns exist over illegal cigarette sales and cross-border smuggling.
- The agreement is part of a broader UK-EU reset, impacting areas like defence and veterinary agreements.
- Spain had been blocking UK participation in defence projects pending the Gibraltar agreement.
Source: theguardian.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
