Juanma Moreno has welcomed plans to remove the border fence with Gibraltar but warned the final agreement must guarantee ‘fiscal and economic equality’ to avoid imbalances in the region.
Speaking during a visit to La Linea de la Concepcion, the Andalucian leader said easing movement across the border would benefit thousands of cross-border workers, but stressed that deeper issues remain unresolved.
Moreno described the removal of the Verja as ‘good news’, particularly for daily commuters in the Campo de Gibraltar.
However, he cautioned that eliminating the physical border alone would not solve underlying disparities.
‘If tax and regulatory differences remain, the competitive disadvantage for Spanish workers and businesses will continue,’ he said.
He also argued that Spain and the EU were negotiating from a position of strength after Brexit and suggested a more ambitious deal could have been reached.
Call for local involvement
Moreno criticised what he sees as a lack of local input in the negotiations, calling for greater involvement from regional authorities, councils and economic sectors.
Decisions, he said, are being taken with a perspective ‘too far removed from reality on the ground’.
He stressed that Andalucia must play a role in planning key public services – including healthcare, housing, education and security – particularly in La Linea de la Concepcion.
Proposal for economic zone
Moreno also pushed for the creation of a special economic zone in the Campo de Gibraltar, aimed at boosting investment and balancing opportunities with Gibraltar.
He said any future agreement must prioritise long-term stability and prosperity for residents on both sides of the border.
How do taxes differ between Gibraltar and Andalucia?
Income tax in Gibraltar is generally lower and simpler than in Andalucia. In Gibraltar, the top rate is around 25%, and the system is designed to be more straightforward, with fewer tax bands and even a choice between two taxation methods depending on how income is structured.
In contrast, Andalucia follows Spain’s progressive tax system, where income tax combines national and regional rates and can reach up to roughly 47% for higher earners.
This means that individuals with higher salaries typically pay significantly more tax in Andalucia than they would in Gibraltar.
Corporate tax shows a similar gap. Gibraltar applies a flat rate of 12.5% on company profits and does not charge VAT, making it an attractive base for businesses.
In Andalucia, companies are subject to Spain’s standard corporate tax rate of 25%, and they must also deal with VAT, which is generally set at 21%.
As a result, businesses operating in Andalucia face a higher overall tax burden and more complex obligations compared to those based in Gibraltar.
Read more Andalucia news at the Spanish Eye.
