The UK government signed the historic UK-EU Treaty on Gibraltar in Brussels on 14 July. The Treaty secures border fluidity for people and goods crossing the Gibraltar-Spain border, delivers economic and trade certainty for people and businesses in Gibraltar, while maintaining the full protections of British sovereignty.

From 15 July, the treaty eliminates border controls and customs checks to create a fluid frontier, allowing for the immediate removal of the border fence that has physically separated Spain from Gibraltar since 1908. This will particularly benefit the ‘frontier workers’ who cross into Gibraltar from Spain on a daily basis.

Under the treaty, Gibraltar will be connected to the Schengen Area, without becoming part of it. Persons entering Gibraltar by port or airport will face immigration checks by Gibraltarian officials and then a Schengen check, carried out by the Spanish authorities on behalf of the Schengen Area. This includes registration under the EU’s new Entry/Exit System (EES) where it applies. This will ensure that people cleared at the airport will then be able to travel freely between Gibraltar, Spain and the wider Schengen Area.

The Agreement includes provisions on visa-free travel, residence rights for persons resident in Gibraltar, and coordinated procedures for the approval of new or renewed residence permits. These provisions allow the relevant authorities in Spain to ensure that residence permits that will allow access to the Schengen area are granted in line with key provisions of EU law designed to protect public safety and security.

Gibraltar residence will be evidenced by an ID card or residence permit. Gibraltar residents are exempt from passport control and both the Entry/Exit System (EES) and the obligation to register under the European Travel Information & Authorisation System (ETIAS). Gibraltar residents also have the right to transit through Schengen EU Member States to return to Gibraltar unless specifically excluded.

The new Treaty establishes a bespoke customs model between Gibraltar and the EU, removing tariffs, duties and quotas on goods moving between them. It delivers enhancements to Gibraltar’s existing indirect taxation system that brings certain rates closer to those in the EU, without adopting VAT or any form of sales tax.

Gibraltar’s current import duty regime will be replaced by a new Transaction Tax (TT), which will be applied initially at a transitional standard rate of 15%. This rate will be increased to 16% for year two and for year three will be aligned to the lowest standard rate of VAT being applied in the EU, which is currently 17%.

The TT will be levied at the point of importation or manufacture, or when goods are brought out of bond, rather than applied at the point of sale. The tax rate will be applied to the customs value of the goods. All revenue from the TT and excise duty will be charged in Gibraltar.

A reduced rate of 5% and a super reduced rate of 0% will apply to certain goods as listed in Annex III of the EU VAT Directive. The choice will be determined by that list. Bunkering fuel, ship supplies and goods that are not to be put up for sale in Gibraltar will be exempt from the TT and from excise duties.

If goods are imported from the UK that do not meet the UK-origin rules contained in the UK-EU Trade & Cooperation Agreement, EU Common External Tariff rates will be applied. The TT would also be applied if the goods are to be placed on the market in Gibraltar.

To achieve fluid movement across the border operationally, the majority of goods destined for Gibraltar will be cleared by EU customs offices in Spain so they can enter Gibraltar without further checks.

The Treaty defines the rights of cross-border workers, who live in Spain and work in Gibraltar or vice versa, to provide a secure framework for employment, supporting the integrated labour market between Gibraltar and the surrounding region. It provides mechanisms for social security coordination so that contributions, entitlements and benefits can be administered without disruption.

Under Article 291, frontier workers are defined as either EU citizens legally residing in the Kingdom of Spain or UK nationals legally residing in Gibraltar who pursue an economic activity as an employed person (or as a self-employed person under the respective UK and Spanish laws) either in Gibraltar or in Spain and who return at least once a week to Spain or to Gibraltar, respectively.

Frontier workers’ rights are also extended to their family members – spouses, registered partners, dependant children under 21, and dependant direct relatives – provided they also legally reside in Spain or Gibraltar respectively.

There is no direct application of EU law to Gibraltar through the Treaty or enforcement role for the Court of Justice of the EU in Gibraltar. It contains provisions confirming how Gibraltar’s domestic legal system will incorporate EU law where alignment is required and confirms it will be enforced by Gibraltar’s own authorities and courts.

To enable the necessary free flow of personal data between Gibraltar and the EU, the Treaty contains provisions of the Treaty operationally viable, without the need for a data ‘adequacy’ decision for Gibraltar, in return for Gibraltar’s continued alignment with key EU data protection rules.

The Treaty also includes commitments to ensure a level playing field as regards State aid, tax transparency, labour standards, trade, sustainable development, anti-money laundering and transport. It further provides for adaptation to EU environmental law to ensure compliance with EU environmental standards and for the creation of a joint environmental impact assessment mechanism.

The Treaty was signed in the presence of the Chief Minister of Gibraltar Fabian Picardo and the Spanish Foreign Minister Jose Manuel Albares and had the unanimous backing of the Gibraltar Parliament. The government of Gibraltar was at the heart of negotiations throughout.

Gibraltar was left out of the UK-EU Trade & Cooperation Agreement following Brexit, creating the prospect of a ‘hard border’ for the 15,000 people – over half of Gibraltar’s workforce – who cross the land border between Spain and Gibraltar every day.

The new Treaty delivers practical solutions to avoid the need for onerous checks and lengthy delays at the border, providing certainty for people and businesses in Gibraltar, and opens new opportunities for flights and economic growth. It also safeguards British sovereignty and protects the autonomous operation of UK military facilities.

“This historic agreement delivers certainty for the people and businesses of Gibraltar, protects British sovereignty, our military facilities, and has the full backing of the government and parliament of Gibraltar,” said UK Minister for Europe, North America and Overseas Territories Stephen Doughty.

“Gibraltar has been at the heart of these negotiations throughout. A cherished part of the British family, its economic future and thousands of jobs depended on finding a practical solution to the challenges created by Brexit. Our support for Gibraltar remains as solid as the Rock. This agreement opens a new chapter with the EU and Spain, supporting jobs, growth and prosperity on both sides of the border.”

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Workplace pensions are now a legal requirement in Gibraltar, but many small business owners are not sure what one actually costs.

That is because providers do not always present their fees in the same way. Some bundle costs together, while others charge certain items separately, making it difficult to compare like for like.

The good news is that once you know what to look for, understanding the costs is much simpler.

Here is a straightforward guide to the three main cost areas, the small print worth checking, and a worked example of what a workplace pension could look like in practice.

The three costs to budget for

The first is employer contributions, which is the biggest cost and is set by law. Employers and employees must each contribute a minimum of 2% of gross earnings into the workplace pension. Employers can choose to contribute more if they wish to offer a more generous employee benefit, but 2% is the legal minimum.

The second is the implementation fee, a one-off fee to establish the scheme, onboard employees and ensure everything is set up correctly from day one. Because it is a single, upfront cost, it is usually one of the easiest fees to compare between providers.

The third is ongoing administration. Once a scheme is up and running, there will usually be an annual fee to cover its ongoing administration. Depending on the provider, this may include Trustee duties, scheme administration, record-keeping, reporting, member support and access to financial advisers. This is also the area where providers differ the most, so it is worth asking exactly what is included and how the fee is calculated.

The small print worth checking

A few extra costs can sit outside the three main fees above, depending on the provider and the type of scheme. These might include GFSC regulatory fees, financial statements or scheme wind-up costs. Not every scheme incurs these charges, and some providers include certain items within their quoted fee while others charge them separately.

A worked example

Consider a business with five employees, each earning £30,000 a year, choosing Sovereign’s Foundation Plan, designed for employers looking for a straightforward, compliant workplace pension.

Employer contributions represent the legal minimum and will be the same regardless of which provider is chosen. On a total annual payroll of £150,000, the employer contribution at 2% comes to £3,000 a year, or £250 a month.

To establish the Sovereign Foundation Plan, there is a one-off implementation fee of £750. Employers who are members of the Gibraltar Federation of Small Businesses (GFSB), use EasyPay, or participate in Sovereign’s Discount Card Scheme receive a 30% discount, reducing this fee to £525.

The Foundation Plan has an annual administration fee of 1% of Assets Under Administration (AUA). Rather than being invoiced separately to the employer, this fee is deducted quarterly from pension accounts, helping spread any significant changes in the investment performance of the funds. It covers Trustee obligations, annual scheme administration and access to Sovereign Wealth services as the appointed wealth advisers to the Trustee.

As with all workplace pension schemes, future regulatory fees may apply. Where applicable, these are invoiced directly by, and payable to, the Gibraltar Financial Services Commission (GFSC).

At a glance

Costs for a business with 5 employees earning £30,000 a year and opting for the Sovereign Foundation Plan:

Notice that only one of these costs, the employer contribution, is fixed by law. Everything else depends on how a provider structures its fees and what is included in the price quoted. That is why it is important to compare the full cost of running a scheme, not just the headline figure.

Questions worth asking before choosing a provider

Before choosing a provider, it is worth asking what is included in the annual administration fee, and whether there are any regulatory or statutory charges billed separately. It is also worth understanding how the annual fee is calculated, whether fees will change as the scheme grows, and what other costs could arise during the lifetime of the scheme. Finally, it is reasonable to ask a provider for an estimate of what the scheme is likely to cost over the next five or ten years. A provider that is transparent about its pricing should be happy to answer each of these questions clearly.

The bottom line

Understanding what is included, what is charged separately and how fees are calculated will help employers compare providers fairly and avoid surprises later on.

At Sovereign transparency is just as important as value. Our team of experts are happy to explain every part of its pricing, answer any questions employers may have and provide a personalised cost projection based on an employer’s own workforce, so employers know exactly what to expect, both now and over the years ahead.

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The government of Gibraltar announced, on 17 June 2026, revised rules for people applying for residency in Gibraltar to ensure that long-term residence rights are granted to applicants that make a genuine economic contribution and have a durable connection to Gibraltar.

The new rules will only apply to people seeking residence in Gibraltar after 6 October 2025 and will not affect existing holders (i.e. pre 6 October 2025) of Gibraltar civilian registration cards or identity cards.

It has also announced raising the fees and minimum net wealth requirement for new applicants under the Qualifying (Category 2) Individuals Rules 2004 for high-net-worth individuals.

These changes come in response to a sustained growth in demand for residency in Gibraltar in anticipation of the agreement between the UK and the European Union in respect of Gibraltar, which was published in February 2026 and is due to come into force on 15 July 2026.

This Agreement establishes a new system for the movement of persons, designed to remove all routine immigration checks and physical barriers at Gibraltar’s land border with Spain while maintaining stability and security across Gibraltar and the Schengen Area.

Gibraltar will remain outside both Schengen and the EU, but Schengen border rules will apply at its external border under a tailored arrangement between the UK and EU. Gibraltar residents can stay in any Schengen EU member state for up to 90 days in any 180 without requiring a visa. EU citizens and third country EU residents can stay in Gibraltar for up to 90 days in any 180 without requiring a visa.

Gibraltar has typically received an average of around 1,000 residency applications per year, but this rose to more than 3,000 between 2022 and 2024. When agreement between the UK and the EU was announced in June 2025, applications almost tripled.

In response, the government of Gibraltar established a new Immigration Criteria Consultation Committee to revise the residency framework, and, on 6 October, it suspended all new residency applications from UK and EEA nationals with immediate effect.

Residency – Qualifying Periods and Parentage

On 30 October 2025, the government published the Gibraltarian Status & Immigration (Amendment) Bill 2025, which makes significant changes to qualifying periods for Gibraltarian residency. The Bill provides that:

• The qualifying period for Permanent Residency status is increased from five years to 10 years.
• The qualifying period for Gibraltarian status via long residence is increased from 10 years to 20 years and is also made subject to ministerial discretion.
• To qualify for Gibraltarian status via parentage, an applicant is required to have a parent who is already a registered Gibraltarian. Previously, some applicants could qualify via a grandparent who was entitled to register but had not done so.

The publication of the revised criteria that will govern applications for residence in Gibraltar completes the government’s residency reform programme.

Residence Permit for Employees

Anyone applying for a new Residence Permit in Gibraltar must accompany the application with an employment contract under which:

• The minimum salary must be the equivalent of the average gross annual earnings in Gibraltar, currently £37,500 but which will be updated annually.
• The employer is a business that has been trading in or from Gibraltar for at least a year, is fully registered and licensed in Gibraltar, and is up to date with all payments and filings.

Applicants must also provide evidence of the rental or purchase of a property in Gibraltar. A purchased property must be legitimately available for the applicant’s exclusive use during the duration of the residence permit and cannot be let. A rental property must be for use as the applicant’s primary residence and the lease must not be for less than 12 months or for a holiday rental. No future applications will be accepted from individuals living on marine vessels.

Applicants must further provide proof that they are 55 years old or under, subject to ministerial discretion, and provide an official vetting form from their country of origin.

For applicants under 30 years of age, the minimum salary requirement can be waived if the employer pays the tax and social insurance contributions equivalent to the minimum salary threshold in Gibraltar for every year until the salary threshold is reached.

Any individual applying for residence can be accompanied only by a spouse and children. For a spouse, the applicant is required to pay an amount equivalent to the maximum employee’s Social Insurance contribution on behalf of the spouse.

New Businesses and Self-Employed Individuals

The framework provides some flexibility. For a business that has traded for less than 12 months or where an individual is registering as self-employed for the first time, an advanced payment in the form of a deposit will be required equivalent to the following:

• Total employee and employer social insurance contribution for the first year of employment, and
• Total tax payable on the equivalent of the minimum salary threshold, taxable at 25%.

This deposit will be returned upon the cessation of business and the Minister for Business has discretion to waive the full amount due, in certain, defined circumstances.

Business Registration Requirements

For a business to be fully registered under the Business, Trades and Professions (Registration) Act and licensed under the Fair Trading Act, the Department of Business can assess factors that may include, but are not limited to:

• The creation of full time or part time employment in Gibraltar.
• The provision of in-demand skills required in the jurisdiction.
• The rental of suitable office or commercial space in Gibraltar.
• A positive tax filing history of the applicant.
• The future generation of economic activity in Gibraltar by the applicant.

Anti-Avoidance Measures

Any variations to a contract that reduce the amount paid to the employee will be automatically flagged to ensure that the minimum salary conditions under which the permit was issued continue to be met.

The government will also implement a mechanism to ensure businesses are up to date with all payments and filings, including tax liabilities, social insurance contributions, licensing fees, registration fees and any other regulatory payments.

Residence Permit Renewal

Residence permits will be subject to annual renewal, with a requirement for confirmation that all conditions continue to be met. Any failure to disclose accurate and complete information, or failure to notify any material change in circumstances, may result in the renewal being refused or the permit being suspended or revoked.

The residence permit will automatically lapse if tax or social insurance payments cease for the individual, unless the employee can produce evidence that payments have been deducted from their salary but have not been paid on by the employer.

All permits will automatically lapse eight weeks after a Notice of Termination of Terms of Engagement is filed with the Department of Employment, unless the Director of Immigration and Home Affairs is satisfied that the individual has a new employment contract.

Benefits for Residence

The benefits attaching to residence have been restricted. They cover the Group Practice Medical Scheme (GPMS) for the holder, spouse and any children under 18 or in tertiary education, but expressly do not extend to an applicant’s parents. Children under 18 are also entitled to schooling in Gibraltar and a scholarship becomes available for a dependent child after 10 years of continuous lawful residence and uninterrupted payment of tax and social insurance in Gibraltar.

Other social benefits, such as entitlement to elderly residential care, domiciliary care, public and affordable housing or berthing rights only become available to those who qualify for Gibraltarian status as British citizens who have completed 20 years of residence.

An unmarried partner of a person holding Gibraltarian status will be required to evidence a durable relationship of at least two years.

Students at the University of Gibraltar are entitled to the benefits arising from residence for the duration of their studies provided the GPMS contribution is paid, with the same entitlement and contribution extending to a spouse and children under 18.

Application Fees and Penalties

The application fee for Residence will be raised to £250. Renewal fees will be set at £100. Residing in Gibraltar without a Permit of Residence can attract a fine of up to £2,500.

The Gibraltar government said: “The proposed criteria for individuals looking to apply for Residence in Gibraltar is intended to ensure that residence in Gibraltar is grounded in genuine economic contribution, compliance with all applicable legislation and the protection and sustainability of public services.

“The policy maintains Gibraltar’s openness to talent and enterprise while introducing clear, fair, and transparent requirements relating to employment, business activity, accommodation, and ongoing contribution through tax and social insurance. Proportionate safeguards and anti-avoidance measures are included to protect the integrity of the system.”

Changes to Qualifying (Category 2) Individuals Rules for high-net-worth individuals

To reflect Gibraltar’s premium positioning in advance of the UK-EU Treaty and to ensure that Gibraltar continues to attract individuals who are well-placed to make a meaningful and sustained contribution to the economy and wider community, the government is also significantly increasing the entry criteria under the Category 2 regime.

Category 2 status is designed for high-net-worth individuals who wish to reside in Gibraltar under a clearly defined framework and is awarded on the decision of the Finance Centre Director.

Under the Category 2 rules, individuals are generally subject to a cap on their Gibraltar tax liability with income tax payable only on the first £118,000 of assessable annual taxable income (2025/2026 rates), subject to a minimum annual tax liability of £37,000. This gives rise to a maximum annual Category 2 tax liability of £42,380 (2025/2026 rates). Assessable income does not include capital gains, gifts or many types of investment income.

Under the changes announced by the Gibraltar government on 18 June 2026, the application fee will increase from £1,233 to £5,000 and the minimum net wealth requirement for new applicants will increase from £2 million to £5 million. This increase in the Category 2 net wealth requirement is long awaited and keeps Gibraltar competitive against other jurisdictions.

The new rules also confirm that Category 2 status carries no entitlement to publicly funded schooling or healthcare, and that a person who does not maintain their Category 2 status has no right to remain resident in Gibraltar.

“We are seeing strong interest in Category 2 status following the Treaty announcement, which reflects growing confidence in Gibraltar’s future. At the same time, it is important that the regime remains aligned with Gibraltar’s broader economic objectives and the opportunities arising from the Treaty,” said Minister for Justice, Trade & Industry Nigel Feetham.

The relevant new residency legislation should be issued shortly.

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The Spanish government formally removed Gibraltar from its blacklist of ‘non-cooperative jurisdictions’ for tax purposes, as of 28 June, following publication of a ministerial order by the Ministry of Finance in the official State Gazette.

The move finally brings an end to a designation that has endured for more than three decades. Gibraltar was included on Spain’s first list of tax havens in 1991 but has undergone a substantial transformation as an international financial centre in the intervening years.

Gibraltar was formally added to the OECD ‘white list’ in October 2009 and became a signatory to the OECD’s Multilateral Convention on Mutual Administrative Assistance in 2014. Significantly, it has never appeared on the European Union’s own list of non-cooperative jurisdictions in respect of tax information exchange.

In 2019, Spain and the UK signed a tax agreement in respect of Gibraltar, which established a framework for tax cooperation and transparency between Gibraltar and Spain and removed the basis upon which Spain had continued to maintain Gibraltar on the list. When this agreement came into force in March 2021, Spain committed explicitly to remove Gibraltar from its blacklist within two years.

“This is a long-overdue and very welcome step by Spain. For 35 years, Gibraltar has carried the label of a tax haven. That label was wrong. It was wrong when it was first applied in 1991, and it became harder to justify with every passing year as we built one of the most transparent, well-regulated financial centres in the world. Spain has now started the process of correcting the record,” said Gibraltar Chief Minister Fabian Picardo.

“The commitment made in 2021 when we signed the International Tax Agreement was clear: delist Gibraltar. It took longer than it should have, and that delay had real consequences for our economy and our reputation. But what matters now is that Spain is acting on its word. This is good news for Gibraltar, for our financial services sector, and for the many businesses and individuals on both sides of the border whose working lives were affected by this outdated designation.”

The delisting of Gibraltar by Spain will lead to a structural change in its tax treatment. Spain will no longer automatically apply domestic anti-abuse measures in respect of personal, corporate and non-resident income. It will also eliminate enhanced requirements and end Gibraltar’s automatic exclusion from certain tax benefits.

Importantly, the timing of the Spanish delisting comes in advance of the new post-Brexit agreement between the UK and the EU in respect of Gibraltar, which was finalised in February and is due to come into force in July.

The main objective of the Agreement is to remove all physical barriers on persons and goods circulating between Spain and Gibraltar. Gibraltar is not joining the EU Customs Territory; it is entering into a bespoke arrangement that enables the free circulation of goods between Gibraltar and the EU without customs checks at the land frontier.

Gibraltar’s current import duty regime will be replaced by a new Transaction Tax (TT), which will be levied at the point of importation or manufacture, or when goods are brought out of bond, rather than at the point of sale. Set initially at a transitional standard rate of 15%, it will increase to 16% in year two and, from year three, will be aligned to the lowest standard rate of VAT applied across the EU, currently 17%.

The Agreement also establishes a new system for the movement of persons, designed to remove all routine immigration checks and physical barriers at the land border while maintaining stability and security across Gibraltar and the Schengen Area. Gibraltar will remain outside both Schengen and the EU, but Schengen border rules will apply at its external border under a tailored arrangement between the UK and EU.

Alongside Gibraltar, Spain’s ministerial order also delisted Barbados, Dominica, Seychelles and Trinidad & Tobago from its blacklist of ‘non-cooperative jurisdictions’ for tax purposes, while Samoa was removed in respect of its offshore business regime. However, Russia was added to the blacklist in respect of its international holding companies tax regime.

The post Spain finalises Gibraltar’s ‘long overdue’ removal from its tax ‘blacklist’ appeared first on The Sovereign Group.

The UK and the European Union jointly published, on 26 February, the draft legal text of the UK-EU treaty to govern Gibraltar’s post-Brexit relationship with the EU. Now awaiting ratification by the respective parliaments, the expected implementation date is 10 April 2026 when the EU’s new Electronic Entry/Exit System (EES) is scheduled to go into fully operation.

The EU-UK Agreement in respect of Gibraltar will complete the legal framework of the relations between the EU and the UK. Gibraltar was not included in the scope of the EU-UK Trade & Cooperation Agreement (UK-EU TCA), which was signed in 2020 and has been in force since May 2021.

The main objective of the EU-UK Agreement in respect of Gibraltar is to remove all physical barriers on persons and goods circulating between Spain and Gibraltar, while fully safeguarding Gibraltar’s sovereignty, the EU’s Schengen area, Single Market and Customs Union, and the autonomy of key British military facilities.

The government of Gibraltar formed an integral part of the UK’s negotiating team at every stage of the negotiations and has given its full support to the Agreement.

There is no direct application of EU law to Gibraltar through the Agreement or enforcement role for the Court of Justice of the European Union in Gibraltar. There are, however, provisions confirming how Gibraltar’s domestic legal system will incorporate EU law where alignment is required and confirms it will be enforced by Gibraltar’s own authorities and courts.

How will the customs arrangement between Gibraltar and the EU work?

The Agreement creates a customs union between the UK and the EU in respect of Gibraltar. Gibraltar is not joining the EU Customs Territory; it is entering into a bespoke arrangement that enables the free circulation of goods between Gibraltar and the EU without customs checks at the land frontier.

Gibraltar businesses will be able to access the EU Customs Union market. They will be able to sell to customers across the EU, and EU consumers will be able to buy from Gibraltar, without customs barriers. All goods sold on in Gibraltar must be EU compliant, subject to a three-month transition period, from 10 April, for goods already on the market in Gibraltar.

What is the new transaction tax and how will it apply?

Gibraltar’s current import duty regime will be replaced by a new Transaction Tax (TT), which will be applied initially at a transitional standard rate of 15%. This rate will be increased to 16% for year two and for year three will be aligned to the lowest standard rate of VAT being applied in the EU, which is currently 17%.

The TT will be levied at the point of importation or manufacture, or when goods are brought out of bond, rather than applied at the point of sale. The tax rate will be applied to the customs value of the goods. All revenue from the TT and excise duty will be charged in Gibraltar.

A reduced rate of 5% and a super reduced rate of 0% will apply to certain goods as listed in Annex III of the EU VAT Directive. The choice will be determined by that list. Bunkering fuel, ship supplies and goods that are not to be put up for sale in Gibraltar will be exempt from the TT and from excise duties.

EU minimum excise rates will apply to tobacco products and alcoholic drinks. By 10 April 2029, excise duties for fuel, alcohol and tobacco in Gibraltar are to be within 6% of the equivalent Spanish excise rates.

If goods are imported from the UK that do not meet the UK-origin rules contained in the UK-EU Trade & Cooperation Agreement, EU Common External Tariff rates will be applied. The TT would also be applied if the goods are to be placed on the market in Gibraltar.

Gibraltar businesses purchasing wholesale goods from suppliers in the EU for sale in Gibraltar should not pay VAT but will pay the TT on importation, or if applicable, when the goods leave a bonded warehouse in Gibraltar. Individuals in Gibraltar purchasing goods in the EU will pay VAT and will not be able to reclaim this. However, they will not pay the TT in Gibraltar on those goods.

How will movement between Gibraltar and Spain change?

The Agreement establishes a new system for the movement of persons, designed to remove all routine immigration checks and physical barriers at the land border while maintaining stability and security across Gibraltar and the Schengen Area.

Gibraltar will remain outside both Schengen and the EU, but Schengen border rules will apply at its external border under a tailored arrangement between the UK and EU. The Agreement provides that all necessary immigration checks will take place at Gibraltar’s airport rather than at the land border.

Gibraltar residents can stay in any Schengen EU member state for 90 days in any 180 without requiring a visa. EU citizens and third country EU residents can stay in Gibraltar for 90 days in any 180 without requiring a visa. Visas may be required for anyone carrying out a paid activity, but exemptions include business travel, sportspersons and artists, journalists and intra-corporate trainees.

What are the new rules for residence and visas?

Gibraltar residence will be evidenced by an ID card or residence permit. Gibraltar residents are exempt from passport control and both the Entry/Exit System (EES) and the obligation to register under the European Travel Information & Authorisation System (ETIAS). Gibraltar residents also have the right to transit through Schengen EU Member States to return to Gibraltar unless specifically excluded.

Under Article 45, a legal right to reside in Gibraltar will be subject to a person holding a valid identity card or residence permit issued in Gibraltar by the UK competent authorities on the condition of the person having been resident in Gibraltar for a continuous period of at least ten years immediately prior to the date of application for the card or being able to demonstrate a ‘genuine connection’ with Gibraltar. A ‘genuine connection’ is defined as being “able to demonstrate actual and regular physical presence in Gibraltar over an appropriate period of time or on the basis of other objective and verifiable criteria”.

Under Article 45 (6) these conditions will not be met “on the basis of predetermined investments having been made in Gibraltar’s economy or real estate; or as a result of any predetermined financial payments having been made to the Gibraltar authorities.”

The issue or renewal of residence permits for foreign nationals seeking to reside in Gibraltar will remain, under Gibraltar law, exclusively a matter for the Gibraltar authorities subject to the conditions in Article 45. However, the grant of residence permits will be subject to consultation with the Schengen authorities in respect of issues of public health, public security or public policy. This is to ensure that residence permits that will allow access to the Schengen area are granted in line with key provisions of EU law.

Nationals of third countries required to be in possession of a short stay visa to enter and stay in the EU will also be required to be in possession of a visa to enter and stay in Gibraltar. Nationals of third countries exempt from the requirement to be in possession of a short stay visa to enter and stay in the EU will not be required to be in possession of a visa to enter and stay in Gibraltar.

What rights apply to cross-border workers?

The Agreement defines the rights of cross-border workers, who live in Spain and work in Gibraltar or vice versa, to provide a secure framework for employment, supporting the integrated labour market between Gibraltar and the surrounding region. It provides mechanisms for social security coordination so that contributions, entitlements and benefits can be administered without disruption.

Under Article 291, frontier workers are defined as either EU citizens legally residing in the Kingdom of Spain or UK nationals legally residing in Gibraltar who pursue an economic activity as an employed person (or as a self-employed person under the respective UK and Spanish laws) either in Gibraltar or in Spain and who return at least once a week to Spain or to Gibraltar, respectively.

Frontier workers’ rights are also extended to their family members – spouses, registered partners, dependant children under 21, and dependant direct relatives – provided they also legally reside in Spain or Gibraltar respectively.

How will law enforcement cooperation operate?

The Agreement includes a law enforcement and judicial co-operation framework, modelled on the UK–EU TCA. It provides for reciprocal intelligence sharing, operational cooperation between the Royal Gibraltar Police and Spanish law enforcement, and joint protocols for cross-border security.

Gibraltar officials will always accompany Spanish officials in any joint operation on Gibraltarian soil. The Agreement also sets out the conditions for arrest warrants and extraditions as well as for freezing and confiscation orders, and the sharing of banking information if someone is suspected of criminality.

What does regulatory alignment mean for Gibraltar?

The treaty includes a ‘level playing field’ chapter, based on the UK-EU TCA but going further in certain areas. Under this framework, Gibraltar commits to maintain equivalence on labour standards, tax transparency, anti-money laundering, environmental protection, climate commitments and state aid control.

How are aviation and maritime arrangements affected?

In addition, the Agreement contains an aviation chapter that will provide for ‘enhanced’ use of Gibraltar airport by flights between Gibraltar and EU destinations, which have previously been restricted. Only EU carriers or those authorised by the EU will be able to fly these routes. Only UK carriers or those authorised by the UK will be able to fly from Gibraltar to the UK.

A joint venture company will be established between Gibraltar and Spain to select and supervise an airport manager, which will ensure Gibraltar’s agreement for any changes. Gibraltar will incorporate a certain EU civil aviation rule into its domestic regime. The British military base at the airfield is not in scope of the Agreement.

There are further provisions covering maritime and road transport services between Gibraltar and the EU. Notably, there will be no cruise liners calling directly into Gibraltar from any third country other than the UK and the Gibraltar-Morocco ferry will cease operations.

An exemption from visa requirements under EU law will apply to civilian sea crew members when they land to board a ship or go ashore to transit to another country, and who hold a seafarer’s identity document issued in accordance with the relevant international conventions.

How will the agreement be governed and implemented?

Finally, the Agreement creates governance structures to manage and oversee cooperation. It establishes a Cooperation Council, with both EU and UK representatives, to supervise and facilitate the application and implementation of the agreement in respect of Gibraltar. It will be co-chaired by a member of the European Commission and a UK government minister and will be supported by three Specialised Committees covering the circulation of persons, the economy and trade, and aviation.

The post EU–UK Gibraltar Treaty Draft Published: Key Provisions and Implications appeared first on The Sovereign Group.

The Gibraltar government confirmed, in a briefing to the Brexit Transition Advisory Group (BTAG) on 29 January, that the expected date for the entry into force of the UK-EU treaty to govern Gibraltar’s post-Brexit relationship with the EU is 10 April 2026, a significant advancement on previously indicated timelines for the treaty’s application.

The European Commission had previously announced on 12 December that negotiators from the EU, the UK, Gibraltar and Spain had successfully completed work on the legal text of the new treaty. Political agreement on the key elements was reached last June after almost four years of negotiations.

“The text is currently undergoing legal review by the EU and the UK before we can proceed with our respective internal procedures leading to the signature and conclusion of the future Agreement,” said a Commission spokesperson.

“The main objective of the future Agreement is to secure the future prosperity of the whole region. This will be done by removing all physical barriers to the movement of persons and goods between Spain and Gibraltar, while preserving the Schengen area, the EU Single Market and Customs Union. This will bring confidence and legal certainty to the lives and well-being of the people of the whole region by promoting shared prosperity.”

All parties to the treaty are now working towards the 10 April target date for implementing the treaty because this coincides with the launch of the EU’s new Electronic Entry System (EES) and will therefore eliminate the risk of disruption at the Gibraltar frontier.

During the briefing, the Gibraltar government outlined key elements of the treaty, which comprises over 330 articles and, including annexes and protocols, runs to almost 700 pages. A substantial portion of the text relates to goods, customs procedures and indirect taxation.

At its core, the treaty establishes a customs union between Gibraltar and the EU, removing customs duties on goods moving between the two. Provisions mirroring standard EU rules on the free movement of goods, customs processes and the prevention of unfair trading practices will apply.

Separate regimes are provided for the import and export of EU goods and non-EU goods, with detailed provisions set out in annexes. Indirect taxation measures cover VAT and excise duties, alongside the creation of an independent body to monitor market competitiveness.

Under the treaty, EU standards will become the norm for goods placed on the market in Gibraltar, but the government confirmed that transitional arrangements will apply from the date of entry into force to cover goods already on sale in Gibraltar or in transit to Gibraltar before 10 April.

A standard rate of Transaction Tax of 15% will apply upon the entry into force of the treaty. Subject to assessments to be made by the independent body, this will increase to a level equivalent to the lowest standard VAT rate applied by any EU Member State, which is currently 17%.

Reduced and zero rates of transaction tax will apply to a range of essential goods, mirroring the EU VAT framework. Excise duties on tobacco, alcohol and fuel will also move towards EU minimum levels during a phased implementation.

The treaty text will soon be circulated by the European Commission to the member states and publication is expected to follow within a period of weeks. Once the legal review is complete, the agreement can proceed to ratification.

It is understood that, as an EU agreement, ratification will only be required in the European Parliament rather than the national parliaments of each member state. For the UK, the ratification process will start with a motion in the Gibraltar parliament calling on the UK to ratify the treaty, after which it will have to be approved by the UK parliament.

The Gibraltar government, which has already approved the text for ratification, said it welcomed the “positive conclusion” of the negotiation on the treaty text. “We remain committed to transparency: the final treaty will be made public and subject to the full scrutiny of the Gibraltar, UK and EU parliaments as part of the process of ratification,” said a spokesperson.

“This agreement was negotiated with the EU by the Gibraltar government alongside the UK government and promises to be a good deal for Gibraltar after many years of uncertainty,” said Alex Powell, Managing Director of Sovereign Trust (Gibraltar). “The forthcoming publication of the final treaty text will allow businesses and residents alike to assess the detail. We will continue to keep clients informed as the ratification process advances.”

The post Gibraltar’s Post-Brexit EU Treaty Set for Implementation on 10 April 2026 appeared first on The Sovereign Group.

When you are responsible for your team’s wellbeing, the stakes are high. The right group medical insurance can protect your people, reduce absence, and strengthen retention. Yet the market can be complex and time-consuming to navigate. That is where appointing a broker makes a measurable difference.

Why appoint a broker for group medical cover?
At Sovereign Insurance Services, we take care of the hard work for you. We compare the market, design tailored benefits, build and negotiate quotes, and then provide ongoing administration and claims support throughout the year. Our advice is independent and jargon-free, and our private medical insurance services are completely free of charge to employers. There are no fees for placement, reviews, recommendations, claims, or administration.

The measurable business impact
Investing in group medical cover is not just about peace of mind; it delivers tangible business benefits. Across Europe, companies that provide health insurance see clear improvements in productivity and attendance. In Central Europe, employers offering group health cover reported a 25% reduction in absenteeism and a 10% to 20% increase in productivity. In Ireland, similar schemes have been linked to almost 30% lower staff turnover and employees who are 25% more productive.

The UK tells a similar story. Private hospital admissions reached a record high in 2024, with insured treatments accounting for more than 70% of all private admissions. Around 80% of these policies are funded by employers, reflecting the growing recognition that faster access to care helps maintain productivity and reduce delays. Organisations that invest in wellbeing report significant improvements, including reduced absence, higher engagement, and better overall performance.

The evidence from the United States reinforces the case. A national study found that employer-sponsored health coverage delivers an average return on investment of 47%, meaning £1 spent generates £1.47 in value. That figure is expected to rise to 52% by 2026. MetLife’s research goes further, estimating that every £1 invested in employee health returns £2.30 in value, thanks to healthier teams who are more productive and take fewer sick days.

The conclusion is clear: investing in group medical cover pays back through fewer absences, faster recovery, and improved retention, while helping you stand out in a competitive job market.

What Sovereign does for you (at no cost)

• Unbiased market search and negotiation: We are not tied to any insurer; we source and negotiate the package that genuinely fits your workforce and budget.
• Clear comparisons and recommendations: Full benefit and cost comparisons, explained in plain English so you know exactly how your people will use the cover.
• Ongoing administration and claims support: We manage onboarding, membership changes, renewals, and support employees with claims to minimise disruption.
• Optimisation over time: Insights on utilisation and claims to fine-tune cover where it matters most for absence and productivity.

Make group medical cover work harder for your business without adding to your workload.

The post Discover the Benefits of Group Medical Insurance – Expert Help at No Cost appeared first on The Sovereign Group.

Setting up a workplace pension under Gibraltar’s Private Sector Pensions Act can feel complex, but it does not need to be. Here are the five most common questions small businesses ask and straightforward answers to help you navigate your obligations.

1. Do I still need to offer a workplace pension if some employees already have personal pensions?
Yes. Even if your staff contribute to personal pension plans, that does not meet your legal obligations under the Private Sector Pensions Act. Employers must offer a workplace scheme to eligible employees. The scheme must be an occupational pension scheme registered and authorised by the GFSC.

If an existing scheme already meets the minimum requirements under the Act, you may not need to change it, but this requires careful review and registration with the Commissioner.

Takeaway: Personal pensions do not exempt you from providing a compliant workplace pension. Check whether your current arrangements satisfy the law and how you can integrate or supplement them efficiently.

2. What if our business has high staff turnover – do I need to enrol every employee?
Yes, if they meet the eligibility criteria set out in the Act. An eligible employee is someone who:

• Is over the age of 15
• Has worked for you for one year or more
• Has gross earnings of at least £10,000 a year

This means part-time, zero-hours or short-term workers may need to be enrolled if they meet these rules.

High turnover can create concerns about paying into pensions for staff who leave soon after enrolment. By structuring your scheme carefully, you can manage risk and ensure contributions benefit employees who stay long-term.

Takeaway: High turnover does not exempt you. Smart vesting rules and good onboarding processes can limit unnecessary costs while keeping you compliant.

3. We don’t have an HR department – how much extra administration will this create?
This is a common concern, but the right provider can make administration simple.

At Sovereign, for example:

• Our Employer Self-Service (ESS) portal allows you to upload joiner data and monthly contributions easily
• Our Member Self-Service (MSS) portal gives employees secure access to view balances, update details, check contributions and switch investments
• We integrate with EasyPay, Gibraltar’s leading payroll software, so contribution data flows seamlessly from payroll to pension

Our Gibraltar-based team can also provide training and support to make the process straightforward.

Takeaway: With the right provider and technology, pension administration becomes a simple monthly payroll task, not a full-time HR burden.

4. How much will it cost my business?
There are three main cost areas:

1. Contributions
   Employers and employees must each contribute a minimum of 2% of gross earnings. Employers can choose to contribute more to enhance their benefits package.
2. Implementation fee
   A one-off setup fee covers establishing the scheme, onboarding members and ensuring compliance.
3. Ongoing administration fees
   Annual fees cover scheme administration, Trustee obligations, record-keeping and reporting. Statutory fees payable to the GFSC or for financial statements are paid by the employer as a disbursement.

At Sovereign, we offer:

• • A fixed implementation fee
  • Ongoing administration fees based on Assets Under Administration, deducted annually from member accounts
  • Three tiers of workplace pensions to suit different needs:
    • Tailored Plan: Fully customisable with broader features
    • Core Plan: Standardised format with shared external costs
    • Foundation Plan: Streamlined, compliant and cost-effective

Takeaway: Costs are predictable and easy to plan for. The right scheme depends on your business objectives and level of flexibility required.

5. What happens if I fail to comply or make a mistake?
Non-compliance or mismanagement can create risk, but there are clear steps to reduce it:

• The GFSC acts as Pensions Commissioner and oversees compliance
• You must notify the Commissioner when you set up your scheme and report changes within 30 days
• Common mistakes include missing deadlines or failing to enrol eligible employees

Working with a provider like Sovereign means you benefit from tested systems, monthly reporting and local support, reducing administrative risk.

Takeaway: While there is regulatory risk, proactive setup and the right partner help you meet your obligations confidently.

Final Thoughts
For small businesses in Gibraltar, implementing a workplace pension is a legal requirement. But it is also an opportunity to strengthen your employee value proposition, improve retention and show you are invested in your team’s future.

As part of Sovereign’s support for Gibraltar businesses, Gibraltar Federationf of Small Businesses (GFSB) members receive a 30% discount on setup costs. Speak to us or the GFSB team to find out more.

If you have questions or would like help reviewing your current pension arrangements, our Gibraltar team is ready to assist. We can guide you through setup and keep you compliant with minimal fuss.

The post Top 5 Questions Small Businesses Ask About Gibraltar Workplace Pensions appeared first on The Sovereign Group.

Gibraltar recently released its 2025 National Risk Assessment (NRA), providing a clear view of the government’s approach to managing financial crime risks, especially in the key areas of money laundering, terrorist financing, proliferation financing and sanctions circumvention, in line with the standards of the global watchdog, the Financial Action Task force (FATF).

This comprehensive assessment, the first since 2020, is an important milestone for Gibraltar as it continues to balance innovation with regulatory strength. Following removal from the FATF Grey List in 2024, the Gibraltar government is now preparing for the next evaluation of its anti- money laundering (ML) and terrorist financing (TF) framework and practice by MONEYVAL, the EU anti-money laundering body, in 2027.

For clients and professionals working with corporate structures, funds and trusts in Gibraltar, the NRA provides an invaluable insight into how the jurisdiction continues to evolve and where opportunities lie.

From tradition to transformation

Gibraltar’s financial sector was built on traditional products and services, notably corporate structuring and private banking. But as the 2025 NRA highlights, over the last 20 years these have increasingly been replaced by digital innovations such as online gaming, e-money products, and most recently, Distributed Ledger Technology and Virtual Asset Service Providers (DLT/VASPs).

This transformation demonstrates Gibraltar’s ability to adapt and stay relevant in a rapidly changing global financial environment, while maintaining strong regulatory oversight. Since Gibraltar’s removal from the FATF grey list, the government has continued to strengthen law enforcement and inter-agency coordination to combat complex cross-border financial crime.

Given its small size, the most complex cases involve cross-border elements and require close cooperation with overseas counterparts. The NRA highlights Gibraltar’s priority to ensure enhanced inter-agency coordination and to ensure that suspicious activity is properly investigated and supported by strong evidence for prosecution.

The NRA also draws attention to the announcement made in June 2025 regarding a political agreement between the UK and the EU for the conclusion of a treaty concerning Gibraltar’s future relationship with the EU, including with the Schengen area. It notes that this treaty is expected to bring further regulatory and operational changes in border control, data sharing, law enforcement cooperation and the movement of persons. This, it says, may have consequential impacts on Gibraltar’s exposure to ML and TF risks, increasing its broader international obligations.

Distributed Ledger Technology and Virtual Asset Service Providers

The inclusion of e-money institutions and DLT providers in the latest NRA underscores how significant these industries have become to Gibraltar’s financial landscape. In 2018, Gibraltar was among the first jurisdictions worldwide to regulate Distributed Ledger Technology (DLT) by implementing a regulatory framework, requiring businesses using DLT for the transmission or storage of value to be authorised by the Gibraltar Financial Services Commission (GFSC)

In 2021, Gibraltar strengthened its position further by introducing the Virtual Asset Service Provider (VASP) registration regime, ensuring alignment with international standards and expanding regulatory oversight. Since then, the sector has continued to grow under the supervision of the GFSC – authorised DLT providers and VASPs now hold more than £3.75 billion in client assets.

This growth reflects investor confidence and reinforces Gibraltar’s reputation as a global leader in regulated digital finance, offering a range of virtual asset (VA) services from exchanges and custodial wallets to token sales, over-the-counter (OTC) exchange services, and leveraged trading services.

Remote gambling and insurance

Gibraltar is an international hub for remote gambling operators with a small and closely regulated gambling sector consisting mainly of remote gambling operators in the Business to Customer (B2C) and Business to Business (B2B) game supply sectors. The number of gambling operators has remained steady with B2C operators increasing from 17 in 2019 to 21 in 2024, which represent about eight million active customers at any given time.

The insurance sector in Gibraltar consists primarily of general insurance companies and is one of the largest contributors to the local economy. The sector currently comprises 37 general insurers, 23 general insurance intermediaries, three life assurers and 13 life assurance intermediaries.

According to the NRA report, most of these firms underwrite risks outside of Gibraltar. Gibraltar’s insurance industry is estimated to underwrite approximately 30% of all UK car insurance policies. In contrast, the provision of life assurance products is relatively small and is undertaken by only a handful of local insurers who issue policies in lower risk jurisdictions.

As of 31 December 2024, there were 18 insurance companies offering life insurance and other investment linked insurance, generating total premium income of £38 million from 35,369 clients. Once one of Gibraltar’s fastest growing sectors, the insurance industry has now matured into a stable and well-regulated pillar of its financial ecosystem.

Strengthening cross-border oversight

Gibraltar is uniquely positioned as a gateway between Europe and Africa, but the NRA report highlights Gibraltar’s geographic exposure to Spain and Morocco, which are both assessed as higher-risk jurisdictions for ML and TF. This, it said, underscores the importance of cross-border risk management and firms must ensure robust due diligence and compliance when structuring international transactions.

The UK, by contrast, presents a more moderate profile, with ‘medium’ ML and low TF risks. The NRA also notes that fraud, cyber-enabled fraud, and the laundering of criminal proceeds remain areas requiring vigilance. These findings reflect not only the challenges faced by Gibraltar but its commitment to applying proportionate safeguards.

Raising the bar for Fund structures

Private and alternative investment funds were a key focus of the NRA. The assessment emphasises the requirement for local fund administrators and custodians, reinforcing Gibraltar’s commitment to substance, governance and investor protection. This strengthens Gibraltar’s reputation as a jurisdiction where fund oversight is taken seriously, which is particularly important in the fast-growing area of crypto and alternative investment funds.

Commitment to international standards

Gibraltar’s successful removal from the FATF grey list in 2024 marked a turning point, and the 2025 NRA builds on that achievement. The report highlights the jurisdiction’s ongoing alignment with FATF standards, with particular emphasis on transparency of beneficial ownership and the effective monitoring of complex cross-border structures. For clients, this provides confidence that Gibraltar remains firmly positioned as a trusted and compliant international financial centre.

While the NRA identifies areas of potential vulnerability, it also highlights Gibraltar’s strengths:

• Digital assets – by recognising DLT and e-money providers within the risk framework, Gibraltar reinforces its position as a credible hub for digital finance.
• Cross-border advantage – Gibraltar’s strategic location enables businesses to leverage opportunities between Europe, Africa and global markets, underpinned by strong compliance.
• Investor confidence – transparent, rigorous risk assessments enhance Gibraltar’s appeal to institutional and high-net-worth investors who value both innovation and security.

“The 2025 NRA is more than a regulatory report,” said Karl Cervan of Sovereign Gibraltar’s Business Development Team, “it is a clear signal that Gibraltar is raising standards while continuing to innovate. By addressing emerging risks in areas such as digital assets and cross-border activity, Gibraltar demonstrates that robust regulation and business opportunity can go hand in hand.

“At Sovereign Gibraltar, we understand that adapting to these shifts requires both strategic insight and practical structuring solutions. Our team is here to help clients navigate this changing environment and ensure that their corporate, trust and fund structures remain compliant while taking full advantage of Gibraltar’s evolving strengths.”

The post Gibraltar’s Strengthening Confidence as a Dynamic International Financial Centre appeared first on The Sovereign Group.

To explore these perspectives, we spoke with the Managing Directors of our three pension offices, asking them the same set of questions.

Sean Gillease (SG) Managing Director of Sovereign Pension Services (CI) Ltd	Cristina Cassar Difesa (CCD) Managing Director of Sovereign Pension Services (Malta) Ltd	Darren Whitley (DW) Managing Director of Sovereign Pension Services (Gibraltar) Ltd

Q1. What does the pensions landscape look like in your jurisdiction right now, and how is Sovereign positioned within it?

SG (Guernsey): The pension landscape in Guernsey is going through a period of rapid evolution and growth. There has always been a large number of specialist providers providing services to individual and corporate clients, based both locally and internationally. This continues but following the introduction of Secondary Pensions (auto-enrolment) in 2024 there has been a significant increase in local pension provision, which will help to ensure better outcomes for residents in the future and which has created significant demand in the local market. Sovereign is very well positioned in the Guernsey pension market, providing solutions for personal and corporate clients based in Guernsey and internationally. Sovereign was recently selected by the Government of Guernsey to manage Your Island Pension (YIP), which is a default auto-enrolment solution and was launched in January 2024. Sovereign has also seen increased interest in international retirement and savings plans for large international employers.

CCD (Malta): Until now, the pension market in Malta has primarily revolved around QROPS for UK expats. However, some very exciting things are happening locally as auto-enrolment is finally being introduced. Sovereign is exceptionally well positioned in this landscape, not just because we are one of Malta’ most established pension provider but also because our international experience enables us to partner with employers navigating this new world of auto-enrolment. Our solutions are robust, tried and tested but also tailored which is exactly what the market needs during this critical time.

DW (Gibraltar): Whilst a long standing QROPS jurisdiction Gibraltar has now introduced legislation around compulsory occupational pensions meaning the landscape mirrors that of the U.K. The Private Sector pensions act requirements commenced in 2021 and continues with a phased approach until 2027. Sovereign is now the largest provider of company pensions on the rock and is well positioned to take on all company sizes with tailored solutions to accommodate the act requirements.

Q2. What’s the biggest difference between personal and occupational pensions in your market? Which area is seeing the most growth?

SG (Guernsey): In the employer sponsored pension area (occupational pensions) the main area of focus for us has been the local auto-enrolment initiative, with YIP particularly. In this area we are dealing with business owners, HR professionals etc and their primary objective is to provide a valuable benefit to their employees. Growth in this area has been significant, driven by the compulsory secondary pensions law.

In the personal pension area, we are dealing with individual clients who want to make additional saving for their retirement, or who want to transfer an existing pension to us. This area can be complex and technical and there are arguably fewer providers able to assist in this specialist area than there would have been previously. Sovereign is well placed to assist having been providing these types of scheme for a significant number of years and with in-house technical expertise, including for pension transfer type cases.

CCD (Malta): The key difference is that to date, the majority of demand has come from QROPS and serving the retirement planning needs of UK expatriates. However, the introduction of auto-enrolment is a gamechanger and we expect this will drive significant growth in occupational pensions in the years ahead. Thanks to our international experience, Sovereign is one of the few providers with genuine occupational pension expertise, making us uniquely positioned to help employers build solid, compliant occupational schemes as this new market emerges.

DW (Gibraltar): Occupational pensions in Gibraltar are contributed to by the employer and employee whereas Personal Pensions are solely contributed by the individual. With the new act in force Occupational Pensions are growing at a rapid rate. Within two years from now every employee in Gibraltar will have had to offer one to their workforce.

Q3. What’s one misconception people often have about pensions in your jurisdiction, and how do you address it?

SG (Guernsey): There are many misconceptions. Many people believe that a pension is only worth having if you can afford to put 000’s of £ per month into it. The truth is for those with a decent amount of time to retirement even a small amount added on a consistent basis over a period of time will be worthwhile. I also think many people are nervous about pensions – there are lots of reasons why this view exists but that is one thing that we work hard to address. Trustee responsibility, member value and clear and concise communications are all ways we try to address that issue.

CCD (Malta): One common misconception in Malta is that pensions are only relevant at retirement age, or that the state pension alone will provide sufficient income. In reality, Malta’s state pension is relatively modest and may not cover the standard of living many people expect. Because the private pensions market here is still developing, part of our role is to raise awareness that additional retirement saving is not just optional, but essential for long-term financial security. By highlighting the potential tax advantages, employer benefits, and the flexibility of well-structured pension arrangements, we aim to shift the perception of pensions from a last-minute concern to an important part of future planning.

DW (Gibraltar): That they don’t need one! People often think the state pension will suffice to retire on but as with most jurisdictions across the world that is never the case. We often highlight the reality of what will be available and it works out very modest.

Q4. How does being part of a wider international group like Sovereign enhance what you’re able to offer clients locally?

SG (Guernsey): Being part of a wider group bring various benefits. In previous scenarios we’ve had clients who have relocated between jurisdictions that we have offices and this has allowed us to assist across both sites. In some cases we also have non-Guernsey resident clients who need support or assistance and given we have offices in many of the countries are clients are resident, such as the UAE, South Africa and Singapore we can arrange for them to meet with someone locally. It also ensures we are aware of ongoing developments, issues and trends across the globe as that can often have an impact on our clients and the services we provide.

CCD (Malta): Sovereign’s international footprint gives us a real competitive edge in Malta. We benefit from shared expertise and direct collaboration with colleagues in other jurisdictions. This means we can offer our clients insights and solutions informed by global best practice, not just local market experience. For a jurisdiction like Malta, where the pensions industry is still small and niche, this support makes a real difference. It helps us avoid common pitfalls and shortens the learning curve for clients and employers who are new to pensions altogether. Ultimately, the backing and experience of the wider Sovereign Group enable us to operate at a higher level of maturity and sophistication.

DW (Gibraltar): It enhances our offerings massively. We employee tax advisors, accountants and lawyers across the group so there is a depth of experience beyond that of our retirement planning field to pull on when needed. Occupational Pensions are not unique to us here in our Gibraltar office either. In Guernsey Sovereign are the provider of choice having won the contract for Guernsey Your Island Pension’s. Our experienced across both offices is often shared to good effect so that is a strength and depth that stands us apart from other providers.

Q5. If you could give one piece of pensions advice to a client starting their retirement planning today, what would it be?

SG ( Guernsey): Get started. Even if the amounts you start off with are small – time is your biggest asset and so those small amounts now can make a huge difference in the future. Also make use of any employer support you can get. If your employer offers a scheme and will contribute into it for you – do not leave the scheme – you are essentially giving away free money and you’ll kick yourself down the line.

CCD (Malta): My advice would be simple: think carefully about your future self,  the person you’re planning for deserves security, comfort, and peace of mind. Just as important as starting early is being selective about who you trust to guide you. The wrong partner could put your plans and your future at risk. The right one will help you navigate uncertainty, stay compliant, and protect what you’re building. At Sovereign, we take that responsibility seriously and are committed to supporting clients throughout their retirement journey.

DW (Gibraltar): Don’t wait! Save a little and often and you won’t regret it in retirement.

To speak to a pension expert from one of our three pension offices please use the contact details below:

Guernsey Office:
Sovereign Pension Services (CI) Ltd
T: +44 (0) 1481 811000
E: guernseypensions@sovereigngroup.com

Malta Office:
Sovereign Pension Services (Malta) Ltd
T: +356 27 888 132
E: maltapensions@SovereignGroup.com

Gibraltar Office:
Sovereign Pension Services (Gibraltar) Ltd
T: +350 200 76173
E: gibraltarpensions@SovereignGroup.com

The post Expert Views: How Pension Markets Are Evolving Across Guernsey, Malta and Gibraltar appeared first on The Sovereign Group.

In an increasingly volatile world, wealthy international families are prioritising asset protection, succession planning and cross-border flexibility more than ever. One of the most robust tools for achieving these goals remains the trust — and Gibraltar is one of the world’s leading offshore jurisdictions in which to establish a trust.

What benefits do Trusts offer?

Planning for wealthy international families typically involves assets, relationships and structures situated in multiple jurisdictions from which complex tax issues and conflicts of law inevitably arise. When electing how to structure their wealth it is therefore essential to do so in a manner that provides security and certainty.

Trusts have long been used by high-net-worth individuals and their families to:

• Protect wealth from political or economic instability.
• Plan generational transfers in a tax-efficient manner.
• Safeguard assets during family disputes or divorces.
• Maintain confidentiality and control across borders.

Despite evolving regulations, trusts remain highly relevant, especially when based in a stable, tax neutral jurisdiction with an effective legal framework. Trusts in Gibraltar are often used in tandem with other vehicles, such as Foundations, Companies or Pension structures, to provide holistic wealth solutions.

What sets Gibraltar apart?

• Common Law jurisdiction – Gibraltar combines an English common law tradition with a forward-looking regulatory environment, making it uniquely suited to serve the needs of international families.
• Strong legal foundation – the Gibraltar Trustee Act, the main trusts legislation in Gibraltar with subsequent amendments, is largely based on the English Trustee Act, making it familiar and reliable for lawyers and clients globally.
• Tax-neutral environment – a properly structured Gibraltar trust can be free from local taxation on income and gains, if the settlor is non-resident, the trust holds no Gibraltar-source income, and beneficiaries are not Gibraltar residents.
• Favourable tax regime – most passive investment income is not taxable in Gibraltar, including bank interest, dividends from companies listed on a recognised stock exchange or dividends paid to non-residents. There is no capital gains tax in Gibraltar and no inheritance, wealth or gift tax.
• Asset protection ¬– the transfer of assets to a trust will qualify for statutory protection if the trust has been properly established and the transfer of assets to the trust is properly registered with the Gibraltar Financial Services Commission (GFSC).
• Enhanced confidentiality ¬– only charitable trusts need to be registered in Gibraltar. All other trusts are private and there is no requirement to register a Gibraltar trust or to file a copy of the trust deed with any government body, providing complete confidentiality for the settlor, the beneficiaries and the trust assets.
• Effective regulation and high professional standards – unlike many offshore jurisdictions, trust service providers in Gibraltar, such as Sovereign Trust (Gibraltar), are regulated by the GFSC, which stipulates requirements as to minimum capitalisation, professional competence and indemnity insurance. This provides greater confidence, particularly for families with complex governance needs.
• EU and UK connectivity – while Gibraltar is outside the EU, it maintains strong commercial and legal ties with both the UK and the broader European market.

How can Sovereign help?

Sovereign opened its first office in Gibraltar in 1987 and has since grown into one of the largest independent corporate and trust service providers with a presence in over 20 jurisdictions around the world. We currently manage over 20,000 structures for a wide variety of clients – companies, entrepreneurs, private investors or high net worth individuals (HNWIs) and their families – and have assets under administration in excess of USD25 billion.

With nearly four decades of operational experience across multiple jurisdictions, Sovereign Trust (Gibraltar) offers:

• Trust creation, management and administration services for all types of trusts, including asset protection trusts.
• Cross-border tax and legal structuring.
• Ongoing compliance and reporting.

We work closely with clients, lawyers and accountants to ensure that each trust is aligned with the family’s long-term objectives — whether that’s preserving a family business, funding philanthropy or passing wealth to the next generation.

Global families need more than just structures: they need jurisdictions that offer security, professionalism and flexibility. Gibraltar ticks all these boxes and can offers a global solution for wealthy international individuals and families to future-proof their legacies.

The post Trust structures for international families: Gibraltar leads the way appeared first on The Sovereign Group.

The UK, the EU, Spain and Gibraltar jointly announced on 11 June that they had agreed the core aspects of a future formal treaty between the EU and the UK in respect of Gibraltar. It involves removing the need for border checks between Spain and Gibraltar while enabling EU/Spanish checks at other entry points into Gibraltar.

Gibraltar is a British Overseas Territory sitting at the entrance to the Mediterranean on the southern tip of the Iberian Peninsula. Its only land border is with Spain. Gibraltar left the EU along with the UK in January 2020, although Gibraltarians voted overwhelming to remain in the EU in the 2016 UK referendum on EU membership.

At Spain’s insistence, Gibraltar was not covered by the Trade and Cooperation Agreement (TCA), which sets out arrangements for the UK and EU’s post-Brexit relationship. Since October 2021, there have since been 19 formal negotiation rounds as well as other talks. The agreement on the EU-Gibraltar relationship is therefore “the last piece of the EU exit jigsaw”.

Since the Brexit vote, the Gibraltar government has stressed the importance of maintaining an open ‘fluid’ border between Gibraltar and Spain given the importance to Gibraltar’s economy of around 15,000 frontier workers who reside in Spain but work in Gibraltar, which represents over half of Gibraltar’s workforce. It has also emphasised the importance of access to the EU single market for key sectors of its economy, notably services.

Interim measures have been in place since the UK left the EU. Spain has allowed Gibraltar residents to continue to cross the border without the passport stamping normally required to enter the EU/Schengen area, and Gibraltar has reciprocated for Spanish residents coming into Gibraltar.

All sides stressed the importance of reaching an agreement before the EU implements its new entry/exit system (EES). This is an automated border system involving biometric checks, which Spain would have been obliged to implement at the border with Gibraltar in the absence of different arrangements. The new EES had been scheduled to begin in November 2024, but was postponed. A phased-in launch is now scheduled from October 2025.

The new agreement will remove all checks and controls on people and goods circulating between Spain and Gibraltar and establish a customs union between Gibraltar and the EU. There will be two sets of checks for people arriving at Gibraltar airport and seaport: the Gibraltar authorities will continue to carry out their own checks and the Spanish authorities will carry out Schengen area checks on behalf of the EU.

The Schengen area is an area without internal border checks on the movement of people, comprising all EU member states except Ireland and Cyprus, plus Iceland, Norway, Switzerland and Liechtenstein. Membership of Schengen also requires the adoption of a broader legal framework covering cross-border police and judicial cooperation with EU institutional oversight.

Gibraltar will not join the Schengen area. Immigration, policing and justice in Gibraltar will remain the responsibility of the Gibraltar authorities. However, the EU regards the Schengen checks at arrival points into Gibraltar as necessary to ensure that anyone entering Gibraltar and then crossing into Spain complies with rules on staying in the Schengen area.

This means that time spent by UK nationals who are not residents of Gibraltar in Gibraltar will be counted as part of the time-limited allowance for short stays in the Schengen area. Citizens of countries outside the EU or Schengen area, including the UK, can only spend 90 days in the Schengen area in any 180-day period.

The new arrangements will involve close cooperation between the border, law enforcement and customs authorities of Gibraltar, Spain and the EU. Other areas covered by the agreement include taxation, the rights of frontier workers, and ensuring a “level playing field” between Gibraltar and Spain and the EU on issues including state aid, labour rules, social security, anti-money laundering, transport and the environment.
In the area of goods, the agreement includes the principles underpinning the future customs union between the EU and Gibraltar, providing for strong cooperation between the respective customs authorities and removing checks on goods. There is also agreement on the principles of indirect taxation to be applied in Gibraltar, including tobacco.

UK Foreign Secretary David Lammy said the UK and the EU had agreed a clause “explicitly protecting” UK sovereignty over Gibraltar. The June 2025 agreement guarantees full operational autonomy for the UK’s military facilities in Gibraltar, including Gibraltar airport, which hosts the Royal Air Force base and is managed by the Ministry of Defence. There is also provision for direct flights to EU destinations from Gibraltar.

Gibraltar Chief Minister Fabian Picardo welcomed the agreement, stating that it would “bring legal certainty to the people of Gibraltar, its businesses and to those across the region who rely on stability at the frontier”.

The joint statement on the agreement said that the way was now clear for negotiating teams to finalise the full legal text. Although Spain and Gibraltar were fully involved in the negotiations, the formal agreement will be between the EU and the UK, which retains responsibility for Gibraltar’s external affairs. It will not come into force until it has been signed and ratified by the parties in line with their ‘internal procedures’.

Sovereign Trust (Gibraltar) Head of Business Development Ejaz Niazi said the agreement was a huge boost to investor confidence by providing long-term legal and regulatory certainty, easing the movement of people between Gibraltar and Spain, and offering the prospect of frictionless cross-border trade in goods and select services.

“The main objective of the future agreement is to secure the future prosperity of the whole region. By removing all checks and controls on people and goods circulating between Spain and Gibraltar, it will boost trade, cross-border employment and tourism,” said Niazi. “It will also strengthen Gibraltar’s status as a credible and well-regulated jurisdiction within Europe and will enhance the ability of Gibraltar-based financial services, gaming, insurance and fintech firms to serve EU clients.”

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