www.gibraltar.gov.gi/new/sites/default/files/press/2019/Press%20Releases/Text%20of%20Tax%20Treaty%20in%20English.pdf On 4 March, a tax agreement was reached between the United Kingdom and the Kingdom of Spain on Gibraltar. The agreement aims to improve tax cooperation between Gibraltar and Spain, as well as the expected removal of Gibraltar from the Spanish blacklist. In the final stage of the ratification process, the Spanish Senate on Wednesday (September 16th) approved the international agreement on taxation and the protection of financial interests between the United Kingdom and Spain on Gibraltar (the “treaty”). “Border workers will continue to pay taxes in Gibraltar, with at least border workers residing in Spain working in Gibraltar. Gibraltar`s taxes based on the source of income. So if you work in Gibraltar, we tax your income at the source of Gibraltar. Many of these 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 provide unilateral tax breaks to taxes that have already been paid in a given state. For example, if you are a Spanish 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. [GIBRALTAR GOVERNMENT] www.gibraltarlawyers.com/uploads/PDF/ISOLAS_Tax_Agreement.pdf Tags: Accord Double taxation conventions Europe European Union (EU) Spain Gibraltar United Kingdom Taxation The rules for Spanish nationals will have changed as follows from 4 March 2019, when the treaty is officially ratified and the first exchange of information takes place within four months of the formal ratification of the agreement. The treaty is now referred for approval to the Congress of Deputies and, if passed, ratified by the British Parliament before being transposed into the national laws of Spain and Gibraltar. The new international treaty sets out objective criteria for determining who has or does not have a Gibraltar-domiciled tax.