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Gibraltar

British Overseas Territory in Iberia

  • 38 min read
  • 18 chapters

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Through Atlantic Ocean, World War II and European Union

Gibraltar was founded as a permanent watchtower by the Almohads in 1160. It switched control between the Nasrids, Castilians and Marinids in the Late Middle Ages, acquiring larger strategic clout upon the destruction of nearby Algeciras c. 1375. It became again part of the Crown of Castile in 1462. In 1704, Anglo-Dutch forces captured Gibraltar from Spain during the War of the Spanish Succession, and it was ceded to Great Britain in perpetuity under the Treaty of Utrecht in 1713. It became an important base for the Royal Navy, particularly during the Napoleonic Wars and World War II, as it controlled the narrow entrance and exit to the Mediterranean Sea, the Strait of Gibraltar, with half the world's seaborne trade passing through it.

The sovereignty of Gibraltar is a point of contention in Anglo-Spanish relations as Spain asserts a claim to the territory. Gibraltarians overwhelmingly rejected proposals for Spanish sovereignty in a 1967 referendum, and for shared sovereignty in a 2002 referendum. Nevertheless, Gibraltar maintains close economic and cultural links with Spain, with many Gibraltarians speaking Spanish as well as a local dialect known as Llanito.

Gibraltar's economy rests on online gambling, financial services, tourism and the port. With one of the world's lowest unemployment rates, the largest part of the labour force are resident in Spain or non-Gibraltarians, especially in the private sector.

Since Brexit, Gibraltar is not a member of the European Union: a draft treaty was negotiated in June 2025 that would allow the territory to participate in the Schengen Agreement and the European Union customs union. In July 2026, the UK, Spain, Gibraltar and the EU signed the treaty, removing border controls with Spain.

Name

The name is derived from Arabic: جبل طارق, romanized: Jabal Ṭāriq, lit. 'Mount of Tariq' (named after the 8th-century North African military leader Tariq ibn Ziyad, who began the Muslim conquest of the Iberian Peninsula via the Strait of Gibraltar in 711).

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