A Brexit deal for Gibraltar was finalized on 31st December 2020, just in time before the United Kingdom officially left the European Union. Gibraltar has retained its status of a British Overseas Territory, however, the UK and Spain have temporarily agreed to maintain freedom of movement between Gibraltar and Spain.
The agreement between the UK and Spain (EU/UK Gib Agreement) almost permits Gibraltar to be included under the terms of the Schengen Agreement for passport-free travel, although Gibraltar will not be completely included under the terms of the Schengen Agreement such as being a part of the Schengen information databases maintained by the European Commission.
The EU/UK Gib Agreement also maintains that Gibraltar will need to comply with the same rules of fair competition within the EU that other Schengen countries must meet.
Further to the above, the text regarding the EU/UK Gib Agreement also includes the following that must enter into force in the next 6 months: