Gib ‘open for business, closed to freeloaders’, CM tells Parliament
Gibraltar is “open for business” but “closed to freeloaders”, Chief Minister Fabian Picardo told Parliament on Wednesday, as he made a statement explaining the recent pause on new residency applications from UK and EEA nationals.
Mr Picardo said the measure was necessary to safeguard public services and maintain the integrity of the immigration system.
The Chief Minister said Gibraltar “remains open for business” and the move should not be interpreted as closing the door to legitimate economic activity.
The pause, which took effect on October 6, applies to individuals who had not applied for a residence card, certificate, or permit prior to that date.
Those who had submitted their applications before the deadline will not be affected, and the Chief Minister retains the authority to approve applications in cases of economic necessity, extreme hardship or international obligation.
“This is the Government acting in the best interest of our community in a way that will manage the unprecedented demand for residency in Gibraltar,” he said.
Figures cited by the Chief Minister show that between 2022 and 2024, Gibraltar experienced over 3,000 new arrivals, including 952 in 2022, 896 in 2023, and 1,245 in 2024.
He said too there had been an “exceptional rise” in migration since the conclusion of the UK-EU treaty negotiation on June 11, prompting the need for tighter controls.
He stressed that the new measures were not designed to affect individuals who were already living and working in Gibraltar or contributing to the economy.
“These measures are designed to prevent abuse of the system and to strengthen the integrity of our residence framework as Gibraltar prepares for the new treaty environment,” he said.
Addressing concerns raised by the business community, the Chief Minister said legitimate recruitment of skills from abroad would continue to be permitted under existing provisions.
“Nothing in these regulations prevents legitimate business growth, relocation or the recruitment of necessary expertise,” he said.
“Where a business demonstrates an economic need to recruit skills not readily available locally, or where investment supports growth and employment in Gibraltar, such cases will continue to be considered.”
In response, the Leader of the Opposition, Keith Azopardi, said the sudden introduction of the measure with little announcement had caused unnecessary anxiety.
He questioned why the change had not been communicated in advance given that the Government had been tracking rising migration figures for several years.
“If the Government had been mapping out and tracking these trends for the last three years, why could it not have been done on a more measured basis, announced basis, explained to the business community and so on?” he asked.
The Opposition also requested further clarity on the nature of the new arrivals, asking whether statistics were available to distinguish between business-related migration and personal relocation.
Questions were also raised about how the measures would interact with the potential terms of a treaty with the EU, particularly in relation to residence rights.
Mr Picardo rejected the suggestion that the changes were driven by treaty requirements, stating instead that the attractiveness of Gibraltar under the anticipated treaty had increased demand for residency.
He said he had flagged the need for changes in the run-up to the summer break.
“It’s because of what we think is the excellent result that this treaty produces for Gibraltar [that] we have to say, hang on, let’s set out the criteria of who we want to see come to Gibraltar.”
He added that the new residency framework would continue to welcome economically active individuals, especially those involved in legitimate businesses and job creation.
“We’re open for business. We’re closed to freeloaders,” he said.
Mr Picardo described the new approach as one that would continue to allow those coming to work, contribute PAYE and pay social insurance, to live and integrate in Gibraltar.
However, he warned against people moving to Gibraltar with no intention of contributing economically while seeking to benefit from public services.
“We have to stop that… because when the time comes, we want to be able to look after our people in the health authority, in education, and in particular in elderly care,” he said.
The Chief Minister said the idea for the pause originated from a cross-ministerial committee on immigration and residency issues, which included the Minister for Business and was established during the last Budget session.
He indicated the pause was temporary and new criteria for residency would be published shortly.
Further questions from Opposition MPs Roy Clinton and Craig Sacarello focused on the nationality and age profile of new arrivals, with concerns raised about potential impacts on the property market if retirees are discouraged from relocating.
The Chief Minister said that while he did not have those statistics to hand, they would be provided in response to a formal parliamentary question.
He added that future residency rules may allow for certain individuals to live in Gibraltar without accessing public services such as healthcare or elderly care.
“There may be a provision for people to come to live in Gibraltar, but not to have benefits in Gibraltar,” he said.
He also confirmed that the new rules would be consistent with Gibraltar’s message at upcoming promotional events in the UK during Gibraltar Day in London next week.
“In the City of London… we’re trying to attract businesses to Gibraltar, not freeloaders,” he said.
“We will not just have the best product from the point of view of infrastructure, rule of law and access to the Schengen area.”
“It will be the most fiscally attractive product also.”