TRADESMEN who cross the border between Spain and Gibraltar to carry out work on the Rock have reportedly been threatened with hefty fines of up to €3,500 after the implementation of the post-Brexit treaty.
Several Spanish companies that have provided services in Gibraltar for years have encountered unexpected difficulties since Monday, with workers allegedly being warned they could face penalties if they enter the British Overseas Treaty to carry out certain jobs.
The uncertainty has affected firms that provide a wide-range of services to Gibraltar-based businesses.
Business owners say they were given no advance notice of the changes and are now unsure how to continue operating legally.
“We don’t know how to proceed,” one source told Aena, adding that while companies have been given an email address and telephone number for guidance, there is still little clarity over what they must do.
The confusion appears to stem from guidance issued following this month’s landmark UK-EU agreement on the Rock’s post-Brexit future.
In an official FAQ, the Gibraltar government said the agreement does not cover the provision of services including catering, removals, kitchen and future installation, and repair and maintenance work.
Instead, businesses wishing to provide these services will need to be registered locally for tax, social security and employment purposes, with enforcement backed by financial penalties for those who fail to comply.
That requirement has left many Spanish businesses in limbo, with some saying they have spent years working for clients on the Rock but now face uncertainty over what registration is required and whether they can continue operating as before.
Some companies have also complained about what they see as a lack of reciprocity between Gibraltar and Spain.
Others claim they have previously attempted to set up Gibraltar-based companies but still struggled to obtain the permits needed to carry out work, raising concerns that the new arrangements could make cross-border trade even more difficult for Spanish contractors.
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