On Saturday 27 June 2026, Spain's Official State Gazette (BOE) published Order HAC/649/2026 of 21 June, which removes Gibraltar from Spain's list of non-cooperative jurisdictions, the former tax havens. It ends an inclusion that dated back to 1991. The decision carries concrete tax consequences for the more than ten thousand Spanish workers who cross the frontier every day and for any company with interests on the Rock. The decisive point, which almost no headline explains, lies in the effective dates: for most taxpayers nothing changes in 2026.
What the Government has approved
Order HAC/649/2026 amends Order HFP/115/2023, which sets the list of non-cooperative jurisdictions implementing the first additional provision of Law 36/2006. The new order does two things:
- It removes from the list Gibraltar, Barbados, Dominica, Samoa (as regards its harmful offshore regime), Seychelles and Trinidad and Tobago.
- It adds the Russian Federation, for its harmful tax regime for international holding companies.
The concept of “tax haven” was replaced in 2021 by that of “non-cooperative jurisdiction”, with broader criteria: tax transparency, effective exchange of information and the existence of low or zero taxation. Leaving the list requires meeting those criteria; joining it requires failing one of them or maintaining a harmful tax regime.
A decision that follows years of normalisation
Gibraltar does not leave the list from one day to the next. It is the final step of a long process:
- 1991. Gibraltar is included in Spain’s first tax haven list (Royal Decree 1080/1991).
- 2019. Spain and the United Kingdom sign the International Agreement on taxation and the protection of financial interests regarding Gibraltar, the first bilateral instrument governing tax residence and information exchange.
- 2021. That agreement enters into force and begins producing effective exchange of data.
- 2025. The Treaty between the European Union and the United Kingdom on Gibraltar is made public, normalising the border and mobility.
- 2026. Compliance confirmed, the Ministry of Finance removes Gibraltar from the list, in line with its adherence to the OECD inclusive framework and to the Pillar Two minimum taxation standard.
The removal is therefore not a political concession, but confirmation that Gibraltar cooperates effectively on tax matters.
The decisive nuance: from when it applies
This is what separates a rigorous reading from the headline. The order entered into force on 28 June 2026, the day after its publication, but its application is not uniform. The transitional provision is categorical: for taxes whose tax period had not closed on that date, the previous list remains in force for that entire period.
| Tax | Type | Gibraltar stops being non-cooperative | First return affected |
|---|---|---|---|
| Personal income tax (IRPF) | With tax period | Period beginning 1 Jan 2027 | 2027 return (in 2028) |
| Corporate income tax (IS) | With tax period | Period beginning 1 Jan 2027 | IS 2027 |
| Non-resident income tax, no PE | Without tax period | 28 Jun 2026 | Accrual from 28 Jun 2026 |
| Inheritance and gift tax | Without tax period | 28 Jun 2026 | Accrual from 28 Jun 2026 |
| Transfer tax (ITP) | Without tax period | 28 Jun 2026 | Accrual from 28 Jun 2026 |
In practical terms: the first income tax return in which a worker can invoke Gibraltar’s removal is the 2027 return, filed in 2028. In the 2026 return, filed in 2027, Gibraltar still appears as a non-cooperative jurisdiction. By contrast, an inheritance that opens, or a transaction subject to non-resident income tax without a permanent establishment that accrues, after 28 June 2026 already benefits from the new treatment.
Cross-border workers: article 7.p and 60,100 euros exempt
At the end of 2025, 15,509 people worked in Gibraltar crossing the frontier daily, a historic record; 10,859 of them are Spanish, 70% of the total and half of the entire workforce on the Rock. For this group, leaving the list opens a tax lever of the first order: the exemption under article 7.p of the IRPF Act.
Article 7.p declares exempt the employment income from work effectively carried out abroad, up to a maximum of 60,100 euros per year, where two conditions are met:
- The work is carried out for a company or entity not resident in Spain, or a permanent establishment located abroad.
- The territory where it is performed applies a tax of an identical or analogous nature to IRPF and is not a non-cooperative jurisdiction.
Gibraltar has its own income tax, so the first obstacle was never the issue: the problem was the second condition. While Gibraltar was on the list, a Spanish tax resident working on the Rock could not apply the exemption. Once it leaves, that door opens, with effect for the 2027 income tax year.
How the maths changes: from credit to exemption
Until now, the cross-border worker avoided paying twice through the foreign double-taxation credit: they declared the salary in Spain and offset the tax paid in Gibraltar, capped at what that salary would pay in Spain. The result was effectively the higher of the two taxes.
The 7.p exemption works differently and is usually more advantageous: it removes from Spanish taxation the income itself, not the tax due, up to 60,100 euros. By way of illustration, a worker resident in La Línea earning 45,000 euros, paid by a Gibraltar company and for days worked entirely in Gibraltar, would see that salary fully exempt in their IRPF from 2027 (being below the cap), without prejudice to the tax paid in Gibraltar. The actual saving depends on the salary, the autonomous community of residence and the rest of the taxpayer’s income, so it should be calculated in each case.
Two points are worth noting. The exemption and the credit do not stack on the same income: if the salary is exempt, it cannot also be credited. And article 7.p is incompatible with the excess regime (régimen de excesos) of the IRPF Regulation; the more favourable option applies. Like any exemption, it requires evidence of the conditions and of the days worked abroad, so the employer documentation is essential.
Companies and groups: the end of the aggravated treatment
For companies, non-cooperative jurisdiction status triggered a hostile tax regime that now ceases to apply to Gibraltar, with effect for corporate income tax from 2027:
- Dividends and capital gains. The 95% exemption under article 21 of the Corporate Income Tax Act, which avoids double taxation on subsidiary profits, did not reach holdings in non-cooperative jurisdictions. From 2027, a Spanish parent will be able to apply it to its Gibraltar subsidiary where it meets the general conditions: a holding of at least 5% or an acquisition value above 20 million euros, held for one year, and the subsidiary subject to a minimum nominal tax rate of 10%. Gibraltar is taxed in corporate income tax at 15% since July 2024, above that threshold.
- Deductible expenses. Expenses for services with non-cooperative jurisdictions were subject to restrictions and a reinforced burden of proof. Their deductibility is normalised.
- Controlled foreign companies. The reinforced presumptions and aggravated income-attribution rules for non-cooperative jurisdictions (article 100 of the Corporate Income Tax Act and article 91 of the IRPF Act) cease to operate in respect of Gibraltar. Because Gibraltar’s 15% rate is still below the 18.75% threshold (75% of the Spanish corporate rate), a substantive controlled-foreign-company analysis may still be required.
- Presumption of residence. The presumption of Spanish residence for entities located in a non-cooperative jurisdiction whose main assets or activity are in Spain falls away.
- Withholding and reporting obligations. The non-resident income tax exemptions that were excluded for residents in non-cooperative territories become available again, from 28 June 2026 for taxes without a tax period, and the reporting burden associated with operating with the Rock is eased.
The result is a normalisation that facilitates legitimate cross-border investment between Spain and Gibraltar and reduces the over-taxation that penalised structures with a presence on the territory.
Employment and social security: what does not change
It is important not to confuse the two planes. Leaving the list is a strictly fiscal measure. The employment and social security regime of cross-border workers does not depend on this list, but on the United Kingdom Withdrawal Agreement from the European Union, the bilateral social security coordination instruments, and the Treaty between the European Union and the United Kingdom on Gibraltar, whose text was made public in 2025 and which governs mobility and the border crossing. Leaving the list improves the worker’s personal taxation, through 7.p and double-taxation relief, but it does not by itself alter their affiliation or contributions. The employment effect is indirect: more net disposable income for nearly eleven thousand Spanish workers and a more stable framework for cross-border hiring in the Campo de Gibraltar.
Russia joins: the other side of the order
The same order adds Russia, as number 25 of the list, for its harmful regime for international holding companies. For this case, the order itself defers entry into force by six months from publication, so the tightening on the affected transactions will apply later. Companies with links to those regimes should reassess their exposure in advance.
The other territories that leave
The review is not limited to Gibraltar. Barbados, Dominica, Samoa (as regards its offshore regime), Seychelles and Trinidad and Tobago also leave the list, all of them for having demonstrated progress on transparency and information exchange. The list of non-cooperative jurisdictions is, by design, dynamic: it is reviewed periodically to reflect the real evolution of each territory, so that non-cooperative status can be gained or lost over time.
What to do now
For companies with subsidiaries, financing or assets in Gibraltar, the moment to act is the 2026 close and the preparation of 2027: reassess the shareholding structure, the dividend policy and the documentation, in order to use the article 21 exemption from the first tax year in which it applies, and confirm the holding, holding-period and minimum-taxation thresholds. For cross-border workers, the task is to prepare the employer documentation and the record of days abroad, and to have article 7.p ready for the 2027 return, weighing whether it is more favourable than the double-taxation credit.
BMC analyses each client’s exposure to Gibraltar and the best route to incorporate these changes, both in the taxation of individuals and in that of the group’s companies.
This article sets out general information as at 30 June 2026 and does not constitute advice for a specific case. The application of each measure depends on the particular circumstances and should be confirmed with an adviser.