A tax treaty between the United Kingdom and the Kingdom of Spain
regarding Gibraltar has been agreed on the 4th of March.
The agreement is intended to improve cooperation between Gibraltar
and Spain in the field of taxation and the expected removal of
Gibraltar from the Spanish blacklist.
Cross frontier workers will have the benefit of the elimination
of double taxation. The Treaty will allow
individuals to be tax resident either in Spain or
Gibraltar in accordance with their domestic law. The Chief Minister
Fabian Picardo went on to explain,
“Frontier workers will continue to pay tax in Gibraltar,
at least those frontier workers that are individuals who are
resident in Spain and work in Gibraltar. Gibraltar taxes on the
basis of source of income. So, if you work in Gibraltar we tax your
income at source in Gibraltar. Many of those frontier workers who
come into Gibraltar every day to work, go back to Spain and are
also taxed on their income in Spain. This
