In this article by John Westwood, Chairman of the Blacktower Group of Companies, he takes a look at the impact of the temporary stop on new residency applications by UK and European Economic Area (EEA) nationals, announced earlier this month.
The Government of Gibraltar has announced a temporary halt to new residency applications by UK and European Economic Area (EEA) nationals, citing an unprecedented surge in demand and the need to safeguard the jurisdiction’s infrastructure and public services.
The suspension, which took effect on 6 October 2025 under the Immigration (EU Exit) Regulations 2025, affects fresh applications for residence rights under Gibraltar’s Immigration, Asylum and Refugee Act. While the decision surprised parts of the business community, the Gibraltar Government insists it is a necessary measure to ensure the system remains sustainable and focused on applicants with genuine ties to Gibraltar.
What Has Changed
Under the new regulations, EEA, UK, and Swiss nationals are currently unable to reside in Gibraltar for more than three months unless, as of 6 October, they already hold one of the following:
- A Registration Certificate,
- A Residence Card,
- A Document Certifying Permanent Residence, or
- A Permanent Residence Card.
Pending applications submitted before 6 October remain unaffected, and the Department of Immigration and Home Affairs retains limited discretion to process new cases that are demonstrably in Gibraltar’s economic or public interest — including where there are binding international obligations or humanitarian considerations.
The Reasons Behind the Pause
Ordinarily, Gibraltar processes around 1,000 residency applications per year. However, since June 2025, officials have seen applications triple, following the political announcement of a draft UK/EU treaty on Gibraltar’s post-Brexit relationship with the EU.
A key attraction of the proposed treaty is that Gibraltar residency could grant free movement within the Schengen Area — an unprecedented advantage for 
British nationals seeking European mobility after Brexit.
Officials emphasise that without careful regulation, the recent surge risked straining Gibraltar’s limited housing and services. Chief Minister Fabian Picardo has previously indicated that future residency policy will prioritise applicants who actively contribute to the local economy and community.
A Measured Step, Not a Retreat
According to John Westwood, pictured left, Group Chairman of Blacktower Financial Management, the move should be viewed in a balanced context:
“This isn’t Gibraltar closing its doors — it’s Gibraltar managing them responsibly. The territory is taking a proactive step to protect its infrastructure, maintain service quality, and preserve the long-term integrity of its residency programme.”
“For genuine investors, professionals, and high-net-worth individuals looking to establish meaningful ties with Gibraltar, the message remains positive. The government has been clear: Gibraltar is open for business — but it wants to ensure residency is sustainable, credible, and aligned with the jurisdiction’s future under the proposed EU framework.”
Reaction from the Business Community
The business sector reacted with initial concern, particularly given the lack of prior consultation or accompanying guidance. The Gibraltar Chamber of Commerce received numerous enquiries from employers and investors seeking clarity on the practical implications for staffing and expansion projects.
However, subsequent assurances from government officials have helped temper those concerns. The Chief Minister confirmed in a parliamentary statement that the pause is a temporary stabilisation measure and that “fiscally attractive residency criteria will be published shortly.”
“We’ve seen similar short-term policy recalibrations in other jurisdictions preparing for international agreements, Westwood added. “Gibraltar is acting prudently — protecting its reputation while ensuring that when the new treaty takes effect, its residency framework is robust, competitive, and internationally compliant.”
Balancing Growth with Stability
Gibraltar’s success has long been built on its reputation as a secure, well-regulated, and tax-efficient destination for international investors and professionals. The current pause illustrates the delicate balance between encouraging inward investment and managing local capacity.
“Demand for Gibraltar residency highlights its continued global appeal — driven by its sophisticated financial sector, legal certainty, and lifestyle advantages,” says Westwood. “However, it also underscores the need for strategic planning. As the treaty with the EU approaches, Gibraltar must fine-tune its offering to ensure sustainable growth that benefits both residents and the wider economy.”
Looking Ahead
While the temporary suspension may create short-term uncertainty, most observers see it as a pragmatic response to exceptional circumstances rather than a fundamental policy shift. Existing residents and applicants with approved documentation remain unaffected, and discretionary approval pathways for key investors and economic contributors remain open.
Ultimately, Gibraltar’s actions signal a commitment to long-term integrity and competitiveness rather than restriction.
“Gibraltar’s decision reflects maturity, not hesitation,” he added. “By tightening eligibility and maintaining transparency, it strengthens its position as a premier destination for globally mobile professionals and high-net-worth families. Once new criteria are published, we expect demand to remain strong — but more aligned with the jurisdiction’s strategic priorities.
“Blacktower Financial Management has supported expatriates, investors, and professionals across Europe and beyond for over four decades, offering tailored advice on residency planning, cross-border wealth management, and tax-efficient structuring,” Westwood concluded.
