Spain to remove Gibraltar from tax haven blacklist after 35 years

The Spanish government has announced that they will be finally taking Gibraltar off their blacklist for tax havens, or basically, their list of “non-cooperative jurisdictions for tax purposes”. This change will a placement that lasted since 1991 and free up the soon-to-be opened border to more trade and employment opportunities. Gibraltar now satisfies Spanish rules on fiscal transparency and tax fairness under the latest legislation.

Agreements with UK drive Gibraltar decision

Recent agreements between Spain and the UK concerning Gibraltar border issues and cooperation support this development. Gibraltar was listed for 35 years due to earlier disputes over taxation, financial controls and information exchange. Ordinary citizens will start to see little immediate daily impact. Businesses and financial relations between Spain and Gibraltar will now gain smoother operations going forward.

Spain is also removing Barbados, Dominica, Samoa for its offshore business regime, Seychelles and Trinidad and Tobago from the blacklist. Russia joins due to concerns over money laundering and harmful tax practices involving international holding companies.

Chief Minister Picardo welcomes Spain’s decision

Chief Minister Fabian Picardo described the decision as long-awaited and very welcome. Gibraltar has managed to build one of the most transparent and well-regulated financial centres during those decades. The good news for Spanish residents who work in Gibraltar is that they will escape double taxation because of this change.

The draft ministerial order updates Order HFP/115/2023 from February 2023. Public consultation runs until 1 June 2026. Final approval and publication in the BOE and therefore Spanish law, make changes official the next day.

The Verja, the physical border fence between Gibraltar and Spain, is scheduled for full dismantling by 15 July 2026. This date marks the provisional application of the UK-EU agreement on Gibraltar. Under the deal, all terrestrial border controls, booths, fences and physical barriers at the land frontier will disappear to allow free movement of people and goods between Gibraltar and Spain (while new joint controls will operate at Gibraltar’s airport and port for external entry points)

Spain remaining tax havens blacklist

Spain keeps these jurisdictions on its non-cooperative list once the order takes effect:

• Anguilla
• Bahrain
• Bermuda
• Fiji
• Guam
• Guernsey
• Isle of Man
• Cayman Islands
• Falkland Islands
• Mariana Islands
• Solomon Islands
• Turks and Caicos Islands
• British Virgin Islands
• US Virgin Islands
• Jersey
• Palau
• American Samoa
• Vanuatu
• Russia