According to the Commission’s answer to a question in the Official Journal of the EU , Gibraltar is neither part of the area without internal border controls nor of the customs territory of the European Union.
Regarding the Area of freedom, security and justice in Title V of Part Three of the TFEU, Gibraltar is covered by the Protocol allowing the UK to opt into measures adopted regarding that Title, subject to the EU Council’s approval. The same would also apply in relation to the Schengen Protocol, so Gibraltar is only bound by such measures that the UK has opted into in respect of Gibraltar and can exercise frontier controls on people wishing to enter Gibraltar. It is furthermore, bound by the Protocol dealing with the UK’s…show more content… Gibraltar's authorities have expressed concerns that it will give rise to a bad reputation, hindering their financial and banking systems, which have recently gained momentum. In 2004 the Commission, in fact, adopted decisions negatively affecting Gibraltar's regime. Firstly, the Commission considered as State Aid the qualified company regime that was then in force and were those that are subject to a reduced negotiable 2 to 10 per cent rate of Corporate Tax. This regime was included the exempted companies, in which a formal investigation was instructed by the EU. An agreement was reached, whereby the UK would submit a new tax regime to the Commission for approval. The UK proposals have, on several occasions, been challenged by Spain. The application of taxes within Gibraltar has more often than not, been raised together with other EU law matters, such as free movement of capital and state aid.
The EU, instructing a formal investigation, requiring the UK to submit proposals for a new tax regime for the EU to approve, challenged its tax haven. However, such investigations give rise to a bad reputation hindering their financial and banking systems, which have recently gained momentum.
3.2.3. The airport
In the past, political tension and conflicts have been arisen from the airport because of its controversial location within the territory of Gibraltar.
22.214.171.124. Where is it located?