New residency applications for UK and EEA nationals temporarily suspended

New residency applications from UK nationals and citizens from the European Economic Area have been suspended temporarily due to “an unprecedented influx” since June in the number of people seeking to live and work in Gibraltar.

The suspension was set out in new rules published on Monday in the Gazette and came into immediate force. It is not clear how long it will be in place.

Gibraltar has typically received around 1000 residency applications annually over the past three years, but that figure has jumped threefold since June following the announcement of a political agreement for a UK/EU treaty.

Most of those people are from the UK, the Chronicle understands.

The prospect of a common travel area with the Schengen zone, coupled to long-established benefits for residents such as access to healthcare and further education, makes Gibraltar increasingly attractive to many people.

But without careful management, that influx risks placing huge strain on Gibraltar’s finite space and resources.

The issue was flagged as far back as July, when Chief Minister Fabian Picardo told guests at a dinner organised by the Chamber of Commerce that Gibraltar would need to be more discerning as to who could reside here once the treaty was in place.

“We've got to get this balance right,” Mr Picardo said at the time.

“But start thinking that the time may come when we need to be very careful about who we allow into Gibraltar.”

“In other words, our product may be so good that we may not want everybody who wants to come to Gibraltar to come to Gibraltar and raise the price of property as much as it might be, or put as much of a burden on our public services as much as we might find.”

The new regulation triggering the suspension came into effect on October 6, 2025.

People who applied before that date but are still awaiting a registration certificate, a residence card, a document certifying permanent residence or a permanent residence card will not be affected.

For new applications, no documents will be issued until the measure is lifted, except in cases where “the interests of Gibraltar” require it.

According to the regulation, those circumstances could include cases where there is an international obligation that is binding on Gibraltar; where not issuing documentation may cause “extreme hardship”; or where there are economic interests.

In such circumstances, however, the Department of Immigration and Home Affairs must obtain approval from the Chief Minister.

Provisions in the Immigration, Asylum and Refugee Act entitle EEA and UK nationals to reside in Gibraltar for periods exceeding three months so long as certain criteria are met. It is those provisions that have been suspended.

The legislation was amended in 2020 at the time of the UK and Gibraltar’s withdrawal from the EU.

It defines an EEA state as any country that is a party to the European Economic Area agreement, but also includes Switzerland and the United Kingdom, neither of which are EEA members, within that definition.

IMMEDIATE REACTION

After the regulation was published, the Department of Immigration and Home Affairs [DIHA] registered a spike in the number of individuals attempting to regularise their status without having any prior record of lawful residence, No.6 Convent Place said on Tuesday.

Many were unable to produce documentation to substantiate claims of long-term presence in Gibraltar, while were found to be in possession of expired civilian registration cards, in some cases lapsed for several years.

The Government said this reinforced the importance of protecting the integrity of Gibraltar’s immigration and registration systems to ensure the benefits of residing in Gibraltar were reserved for those who had a legitimate claim and contributed to the economy and society in general.

It said publication of the regulation had already caused some people who had been living or working in Gibraltar unlawfully to present themselves to DIHA seeking a way to continue their privileged access to Gibraltar’s public services, “in many cases having not contributed a penny”.

“These measures are designed to ensure fairness, transparency and integrity in our immigration system,” said Chief Minister Fabian Picardo.

“They are not about penalising those who live and work in Gibraltar legitimately and contribute to our economy and community, but about identifying and addressing cases where people are here unlawfully.”

“We have a duty to ensure that Gibraltar’s systems and services, which are the envy of the world, are respected and that those who play by the rules are properly protected.”

“I’d also like to take this opportunity to thank the hardworking officials at the Department for Immigration and Home Affairs, many of whom have had a difficult day dealing with belligerent individuals who have found themselves caught out as running foul of the law.”

“Their professional conduct has been commendable, and any incidents of aggression or inappropriate behaviour by those attending any Government counter at any time will always be dealt with in line with the Government’s zero tolerance policy.”

The Government reassured long-term residents and workers that their status remained unaffected, provided that their documentation was accurate and current.

“Part of the Immigration team are currently engaged in a targeted exercise checking the status of red ID card holders who may have changed address locally but not updated their records with the Department,” No.6 Convent Place said in a statement.

“To date, approximately 50 cards have been cancelled for this reason.”

“The public is therefore reminded to check that their registration and residence documentation is up to date, and to contact the Department of Immigration and Home Affairs if any updates or renewals are required.”

BUSINESS REACTS 

Publication of the new regulations was met with surprise and concern by business organisations. 

The Chamber of Commerce said it had been approached by members seeking clarification on the change of policy and how it could impact their operations. 

The Chamber contacted the Government seeking further details and emphasising the effect that the change could have on employment growth and government tax receipts. 

“The government has indicated that the legislative change is a temporary measure and should not have any bearing on employment procedures for those companies which are already trading in Gibraltar,” the Chamber said in a statement. 

“Applications for residency for employees from legitimate companies, start-ups and investors will continue to be considered in the usual way provided that they can demonstrate that their presence will be economically beneficial to Gibraltar.” 

“This is designed to avoid the attempts by thousands to register in Gibraltar in the past months since the announcement of the UK/EU Treaty and is essential to protect public services like education and health which would otherwise be overwhelmed.” 

“The Government has told the Chamber that a further announcement on the qualification criteria for residency applications will be announced in due course.” 

The Gibraltar Federation of Small Businesses also wrote to the Government seeking further clarity on the measure, which it noted had been introduced without consultation or an indication of its duration. 

“While the GFSB appreciates that the Government’s intention is to prevent potential abuse of the system, this sudden change has generated significant uncertainty among its members, particularly those in sectors such as real estate, financial services, hospitality and gaming, which rely heavily on skilled workers from the EEA and UK,” the GFSB said.  

“This announcement comes as a surprising move just two weeks before the GIBLDN25 Gibraltar Business Conference in London on 21 October, an event which the GFSB and other business stakeholders have been actively supporting.” 

“Recent Government press releases list that the purpose of GIBLDN25 is to showcase Gibraltar as a leading business destination, emphasising opportunities arising from the anticipated UK EU Treaty and promoting Gibraltar as a place to do business, relocate and invest.” 

“In this context, the introduction of restrictions on new residency applications appears contrary to the broader message of growth that has underpinned Gibraltar’s post Brexit strategy, particularly the understood benefits relating to increased Gibraltar residency and talent attraction.”  

The GFSB asked the Government for a fuller understanding of the rationale behind the move, including he specific circumstances necessitating an immediate suspension of new residency applications; the expected timeframe or criteria for lifting the suspension; the wider context, and what plans there are for clear routes to residency, and what the criteria will be; and how the measure aligns with Gibraltar’s broader economic and business objectives, including efforts to attract investment and skilled labour.  

“The GFSB believe transparency and early engagement on such matters are essential to maintaining confidence within the business community and to ensuring consistency,” the GFSB said in a statement.  

“In the meantime, the GFSB is seeking feedback from members on how this measure could impact recruitment, staffing, and operations.”