The UK & the EU have agreed on the text of a treaty on Gibraltar’s relationship with the EU. It links Gibraltar to the Schengen Area & the EU customs union.
The UK government & the European Union (EU) published a draft text of a UK-EU agreement in respect of Gibraltar. The deadline was on 26 February ’26.
The text was finalised on December25. The agreement was after 4 years of negotiations between the UK & the EU.
The agreement covers measures to ensure the free circulation of people and goods between Gibraltar and the EU. Additionally, the agreement aims to remove physical barriers at the border between Gibraltar and Spain. Such measures may involve EU Schengen area rules relating to border checks being applied in Gibraltar. Besides these efforts, a customs union is also being established between the EU & Gibraltar.
The UK, besides the EU, is expected to provisionally apply the Gibraltar agreement from 15 July ’26.

British sovereignty over Gibraltar
Europe Minister Stephen Doughty said in a statement on the agreement to the House of Commons made on 26 February ’26 that Gibraltar was not to join the Schengen area. The agreement was for immigration, policing & justice, remaining the responsibility of the Gibraltar authorities. He added that British sovereignty over Gibraltar, including British Gibraltar Territorial Waters, is fully upheld & explicitly protected.’ This is whilst UK military facilities are involved in operations in Gibraltar, which remain under full UK control.’
The agreement includes a clause that it’s ‘without prejudice’ to the positions of the UK & Spain regarding sovereignty over Gibraltar. It may not constitute the basis of any claims regarding sovereignty (Article 2). The Gibraltar Government has obtained a set of legal opinions which it says confirms that the agreement makes no concessions of legal sovereignty to Spain or any other entity. That’s over Gibraltar.
The status of the UK’s military base in Gibraltar may not be affected by this agreement.


