Finsbury Trust welcomes the formal removal of Gibraltar from Spain’s list of non-cooperative tax jurisdictions, marking the end of a designation that had remained in place since 1991. The change was published in Spain’s Official State Gazette, the Boletín Oficial del Estado, through Orden HAC/649/2026 on 27 June 2026, and took effect on 28 June 2026.
This is a significant and long-awaited milestone for Gibraltar, its financial services sector, and the many businesses, families and individuals with cross-border interests between Gibraltar and Spain. Gibraltar had been included on Spain’s blacklist for 35 years, despite Gibraltar’s continued development as a well-regulated and internationally cooperative jurisdiction.
The removal follows several years of closer tax cooperation between the United Kingdom and Spain in respect of Gibraltar, including the International Agreement on Taxation signed in 2019 and in force since 2021. That agreement created a framework for administrative cooperation and helped address the basis on which Gibraltar had historically remained on Spain’s blacklist.
Spain’s updated list also removes Barbados, Dominica, Seychelles and Trinidad and Tobago, as well as Samoa in relation to its offshore business regime, while adding Russia in respect of its international holding companies tax regime. The Spanish authorities have stated that the changes reflect developments in international standards on transparency, exchange of information and fair taxation, including work carried out through the European Union and the OECD.
For Gibraltar, the development represents an important recognition of the progress achieved over many years. Gibraltar has not appeared on the European Union’s list of non-cooperative jurisdictions and has long maintained a position of cooperation with international tax transparency standards.
The practical effect of the removal is expected to be particularly relevant for groups with personal, commercial or investment links between Gibraltar and Spain. While the precise impact will depend on individual circumstances and the relevant Spanish tax rules, the removal may reduce additional reporting, enhanced due diligence and certain restrictions which were previously associated with Gibraltar’s designation as a non-cooperative jurisdiction.
Additional benefits may include improved treatment for certain Spanish tax exemptions available to non-residents, reduced friction for payments and transactions between Gibraltar and Spain, and a more constructive environment for investment and business activity across both markets. In taxes based on a specific tax period, however, the impact may apply from the beginning of the next relevant tax period rather than immediately mid-period.
The Chief Minister of Gibraltar, Fabian Picardo, described the removal as “long overdue” and said it would mean a great deal to people with cross-border interests, including businesses, workers and those with second homes in Spain.
The timing of the announcement is also notable as Gibraltar continues to prepare for the planned provisional application of the wider treaty arrangements concerning the movement of people and goods between Gibraltar and the European Union. The removal from Spain’s list is therefore an important step within a broader period of change for Gibraltar’s relationship with Spain and the EU.
At Finsbury Trust, we see this as a positive development for Gibraltar’s international standing, reinforcing Gibraltar’s position as a reputable financial services centre and creating new opportunities for individuals, families and businesses with interests across both sides of the border.
.png)
