Last week brought major news for Gibraltar and those keeping a close eye on its post-Brexit future: the UK and EU have reached a detailed political agreement that will regulate Gibraltar’s relationship with the EU going forward.

It’s worth recalling that—at Spain’s insistence and with UK agreement—Gibraltar was excluded from the UK/EU Trade and Cooperation Agreement (TCA), a clear early sign of post-Brexit political compromise. Since Brexit Day (31 December 2020), Gibraltar has existed in a regulatory limbo. That is now set to change.

By autumn 2025, the text of the treaty is expected to be published, with the new regulatory regime due to come into effect by January 2026.

Key Changes: Border Control, Schengen, and Customs

One of the most significant changes is that Gibraltar will become an associated territory of the Schengen Area. This means land border controls with Spain will disappear, and dual immigration checks (EU and Gibraltar) will be moved to the airport, seaport, and marinas.

As with any major change, there will be winners and losers—and sometimes they’ll be the same people.

The biggest impact will be felt by non-EU citizens, including British nationals, who will now be subject to the 90-days-in-180 rule when visiting Gibraltar, as it will effectively fall within the Schengen Zone. On the upside, the land border will be frictionless, allowing easy movement for tourists and residents alike—visitors will be able to stroll across the border to dine, shop, or explore.

Yacht owners will also benefit: spares and equipment bought in either Spain or Gibraltar will cross the border without incurring duties. Gibraltar will be partially integrated into the EU Customs Zone, effectively ending its status as a duty-free port. However, it appears that non-EU VAT-paid yachts will still be able to reset their 18-month EU circulation clock by visiting Gibraltar—a continued draw for international yachtsmen.

Residency: A Game Changer for Yachtsmen

Importantly, Gibraltar residents will not be subject to the 90/180 Schengen rule. That makes Gibraltar a highly attractive base for yachtsmen seeking freedom to cruise EU waters without immigration time constraints.

To become a resident, you’ll need to show you have:

Sufficient financial means.

Private health coverage.

Accommodation in Gibraltar (living aboard a yacht in a marina qualifies)

For those who meet the requirements, this represents a major benefit: Gibraltar-based yachtsmen will enjoy unrestricted cruising across EU waters year-round.

What’s Next?

We’ll be analysing the treaty in detail once it’s published, and will provide specific guidance on how the provisions affect yachtsmen. The political direction is now clear, and any deviations from the agreed framework are likely to be minor.

If you want to take advantage of Gibraltar’s unique position in this tailor-made Schengen and customs arrangement, the next step is simple: get yourself a boat and base it here.

Ready to begin? Email us at boats@boatshedgibraltar.com and take the first step on your new adventure.