The Senator of the Socialist Group, Miguel Angel Vasquez Bermudez, stressed the crucial importance of the Treaty, firstly at the historical level, secondly because of its content and, thirdly, because `it is an instrument that can be used for a deeper and more fruitful cohabitation between Gibraltar and the Campo de Gibraltar`. The rules applicable to Spanish nationals will have changed as follows with effect from 4 March 2019, when the Treaty will be formally ratified and the first exchange of information will take place within four months of the formal ratification of the Agreement. Keywords : | agreements Double Taxation Convention (DBA) | | | Europe of the European Union (EU) Spain | Gibraltar| United Kingdom | Tax On 4 March, a tax treaty was concluded between the United Kingdom and the Kingdom of Spain concerning Gibraltar. The agreement aims to improve tax cooperation between Gibraltar and Spain and the expected removal of Gibraltar from the Spanish blacklist. www.gibraltar.gov.gi/new/sites/default/files/press/2019/Press%20Releases/Text%20of%20Tax%20Treaty%20in%20English.pdf “Cross-border workers will continue to pay taxes in Gibraltar, at least cross-border workers established in Spain and working in Gibraltar. Gibraltar is run on the basis of source of income. So if you work in Gibraltar, we tax your income at the Gibraltar source. Many of these cross-border workers who come to work every day in Gibraltar return to Spain and are also taxed on their income in Spain. This agreement […] stipulates that both states will grant unilateral tax breaks against the tax already paid in a given state. For example, if you are a Spanish cross-border worker, you will continue to pay your tax in Gibraltar, it will be deducted from your salary.

If you are in Spain, you will only have to pay the difference between the higher tax rate in Spain and the amount of tax you paid in Gibraltar if there is a larger difference. `[Hm Government of Gibraltar] On 4 March 2019, a new tax treaty was concluded between the United Kingdom and Spain concerning Gibraltar, which could have serious repercussions on any person having links with Spain. The treaty entered into force last March with the intention of improving tax cooperation between Gibraltar and Spain and the expected removal of Gibraltar from the Spanish blacklist. . . .