The Governments and Parliaments of the Kingdom of Spain, the United Kingdom and Gibraltar have now taken all steps necessary to ratify the entry into force of the International Agreement on Taxation and the Protection of Financial Interests between the United Kingdom of Great Britain and Northern Ireland and the Kingdom of Spain regarding Gibraltar.
The Chief Minister, the Hon Fabian Picardo QC MP, signed the Notice adding the agreement to the schedules of the Gibraltar Income Tax Act 2010 on 26th February. The agreement has therefore now entered into full force and effect in Gibraltar.
This treaty will improve tax co-operation and exchange of information between the tax authorities of Spain and Gibraltar and sets out rules and mechanisms for resolving conflicts over residency. The arrangements will provide for greater administrative cooperation, information sharing and for addressing relevant disputes through a Joint Committee structure.
The Chief Minister said: ‘This is an important step forward in tax cooperation with our neighbours and I trust it will be seen as undeniable evidence of Gibraltar’s commitment to transparency which is widely recognised internationally. We are ready to start the work of exchange of information that is provided for in the Treaty and we look forward to building strong institutional and inter-personal relationships with the relevant Spanish tax authorities in this field, as we have already done with tax authorities around the world.’