Gibraltar will eliminate its border controls with Spain on July 15, enabling free movement of people and goods between the two territories.

Residents of the Spanish town of La Línea de la Concepción, who commute daily to Gibraltar for work, have long faced queues of up to 15,000 crossings during rush hours.

The border, established in 1908, has been a point of tension since Spain's 1969 blockade and the 13‑year customs restriction following the United Kingdom's 2016 EU referendum.

The new arrangement aligns Gibraltar with the European Union customs union and the Schengen free‑travel zone, meaning that goods sold in Gibraltar must now meet EU regulations and a new transaction tax of 15 % will be introduced, rising to 17 %.

Chief Minister Fabian Picardo said the change will bring complete and utter fluidity of people and goods between Gibraltar, Spain and the EU.

Mayor Juan Franco of La Línea de la Concepción noted that the local economy depends heavily on trade with Gibraltar, with a third of business income coming from the territory.

Shilpi Chotrani, a daily commuter, said the removal of the border is a long‑overdue improvement for residents.

Businesses such as Anglo Hispano Company expect increased visitor numbers but warn that the new tax and regulatory requirements may affect competitiveness.

The United Kingdom and European Parliament must still approve the provisional implementation.

The change marks a shift from the restrictive frontier policies of previous decades toward a more open border, with potential economic benefits for both sides.