London and Madrid signed on Monday a tax agreement on the United Kingdom's overseas territory of Gibraltar, claimed by Spain, ahead of London's upcoming withdrawal from the European Union in late March, Spanish Foreign Minister Josep Borrell Fontelles has announced
MOSCOW (Pakistan Point News / Sputnik - 04th March, 2019) London and Madrid signed on Monday a tax agreement on the United Kingdom's overseas territory of Gibraltar, claimed by Spain, ahead of London's upcoming withdrawal from the European Union in late March, Spanish Foreign Minister Josep Borrell Fontelles has announced."Today, I signed a tax agreement on Gibraltar. This is the first international agreement signed by Spain and the United Kingdom on Gibraltar since the [18th century's] Treaty of Utrecht," the minister tweeted.
Under the agreement, signed by Chancellor of the Duchy of Lancaster David Lidington on the part of the United Kingdom, those people who reside in Spain over 183 days a year, are married to a person who is a Spanish resident, have their domicile or keep two thirds of their assets in Spain will be required to pay taxes to Spanish authorities, according to El Pais newspaper.
The United Kingdom and Spain have been contesting Gibraltar for over 300 years after the territory was ceded by Madrid under the Treaty of Utrecht. Spain continues to lay claims to the small piece of land located on the southern tip of the Iberian Peninsula despite the fact that the absolute majority of Gibraltar residents who voted in 1967 and 2002 referendums rejected the idea of rejoining the neighboring country.
Brexit has further complicated the situation over Gibraltar because the UK-governed territory shares a land border with Spain, which remains a member of the European Union, and thousands of people travel to Spain for work every day. Now, local residents risk losing their free access both to Spain and other EU countries, as the territory is set to depart from the bloc with the rest of the United Kingdom.
