Gibraltar Still on Spain’s Blacklist

Spain published its new blacklist last week and Gibraltar remains on the list

The GSD has said from the outset that the Tax Treaty entered by the Government with Spain was negative, intrusive and harmful to our economic interests. It penalises Gibraltarians and Gibraltar companies treating some of these as Spanish tax resident even if they do not live in Spain or have no economic activities in Spain. It is a disincentive to inward investment and is nowhere near the standard and neutral Tax Treaty that other countries would sign. It is loaded to give Spain economic control and power in an unreasonable way.

The Government sold the Tax Treaty locally in 2019 on the basis that one of the positive effects would be that Gibraltar would be removed from the Spanish blacklist of tax havens within 2 years of its entry into force. The Treaty came into effect in Gibraltar by Notice and Regulations made on 26 February 2021. The Treaty came into force in Spain on 4 March 2021. The Government needs to publish when it considers the 2-year deadline expires if not on 4 March 2023.

Last Thursday 9 February 2023 Spain reviewed its blacklist and it has been reported that it did so in the most comprehensive way it has done for 30 years. It published the new blacklist consisting of 24 territories in the Boletin Oficial del Estado on Friday 10 February 2023.

Leader of the Opposition Keith Azopardi said: “Gibraltar remains on the blacklist despite the promises made at the time of the Tax Treaty. The publication of a new list 4 years after the tax treaty and almost 2 years after its entry into force would have been a good opportunity to remove Gibraltar from the list. Unless this happens soon there will be a brazen breach by Spain of the commitment given at the time. How is the Government going to defend its stated position about the positive effect of this bad deal then?”

Note to Editors: Links to the BOE and Gibraltar Notice/Regulations tax/2021s157/2021s157.pdf#viewer.action=download tax/2021s156/2021s156.pdf#viewer.action=download