Article by Owen Smith, GFSB Chairperson

This week started with a leftfield surprise. The sudden publication of new regulations led to a temporary halt in the registration of new residency applications in Gibraltar. The move came without any accompanying press release or explanatory note, leaving the business community and many GFSB members in a state of confusion. It was only after follow-up coverage from GBC that additional information emerged, setting out the Government’s rationale.

The decision, we are told, stems from a “significant number of individuals attempting to regularise their status without having any prior record of lawful residence” and a sharp increase in people contacting the Department of Immigration and Home Affairs with expired documentation. According to the Government, this pause is intended to “strengthen the integrity of Gibraltar’s residence system and ensure that access to services prioritises people with a genuine link or contribution to Gibraltar” (Press Release 730/2025).

This episode highlights two important (and contrasting) points about the forthcoming treaty. On the one hand, the reported surge in interest underlines the obvious appeal and the tangible benefits that Gibraltar stands to gain from this agreement. On the other, it exposes the pressing need for a coherent, strategic plan to ensure that all sectors of Gibraltar’s economy, from real estate and financial services to gaming and hospitality, understand what is in the pipeline enabling them to make the most of the opportunities that lie ahead.

A central feature of the proposed treaty is that Gibraltar residency will confer the right to move freely within the Schengen area. This is an enormous advantage that few other jurisdictions outside the EU offer – particularly for British nationals. It is an opportunity Gibraltar should be seeking to exploit to the fullest extent, supported by a clear and objective product, well-structured policy and positive, carefully thought-out communications.

The publication of the regulations on Monday, however, sent quite the opposite signal. For many, it appeared to suggest that Gibraltar was closed for business when it comes to new residency applications, a perception we must avoid.

To be clear, the Government has stated that the pause “only applies to new long-term residency applications with no clear economic or social purpose” and “is not intended to affect those legitimately living and working in Gibraltar, contributing to the community and the economy” (Press Release 729/2025). It also confirmed that “long-term residents and workers” whose documentation is current “remain unaffected.”

The reality, we hope, is the very opposite of Gibraltar closing its doors. That we remain open and welcoming to new residents, workers and investors. This pause should be a temporary step toward a more defined, sustainable framework that is both fair and credible.

The GFSB fully recognises that new residents must be net contributors to Gibraltar’s economy. However, it should not be difficult to design one or more residency pathways that protect Gibraltar’s fiscal interests while offering a clear, fair route for workers, entrepreneurs and high-net-worth individuals alike.

Across the border, our neighbours in La Línea are pushing ahead with major infrastructure upgrades that will dramatically transform the way people enter and move around the city. New roads, transport links and regeneration projects are already underway and being showcased in local and social media. It is the kind of big, exciting thinking and visible progress that Gibraltar must match if we are to remain competitive and compelling as a place to live and do business.  Whilst it appears that La Linea is about to get a taste of the constant construction boom that Gibraltar is very much used to, apartments are not everything. 

As Gibraltar gears up for the inaugural London Day Business Conference, this clarity is more important than ever. Our members want to go to London with a strong, unified message, a clear proposition that attracts people to live, work and contribute to Gibraltar’s economy.

The Brexit negotiations have been long and complex, the detailed treaty text is yet to be published, but the agreement reached in June appears to be highly positive for Gibraltar and is far better than the no-agreement alternative. We should already be in a position to understand the Government’s strategy to exploit the agreement. We should be developing and promoting the benefits that will come with it, from a transparent and attractive residency product to measures that enhance transport and tourism infrastructure, improve our points of entry, and strengthen Gibraltar’s appeal as a place to visit, holiday, live, work and do business.  There needs to be an urgent and immediate focus on our transport infrastructure, ports of entry as well as our ability to attract, retain and move, visitors, workers and residents.

Information about these plans should already be filtering into the public domain, particularly as we are likely just over a year away from the treaty’s implementation.  The opportunity is there. Now is the time to seize it with vision.