With Brexit already a (much unwanted) reality and the Tax Treaty between Gibraltar and Spain announced, we realised that for Gibraltar residents who spend a lot of time in Spain, the new new treaty with a focus on days and nights, would present a challenge.
Although some of the rules contained in the Treaty were already in place, there was less focus on them and they seemed to be something few people would worry about. The Treaty, with it’s particular focus on the Gibraltar / Spain cross border resident issue, changes this. Coupled with new controls at the frontier during the pandemic, with people being stopped and held at the border and asked to prove residence in either Spain or Gibraltar, together with the visible increase in electronic surveillance being installed at the border it was clear that the days of taking a casual approach to where you reside are over.
“Overnight” the real possibility of an Hacienda inspection, with all that entails – not least liability to the significantly higher Spanish tax rates - was a serious concern for many people spending time in Spain. It was clear that a large number of ordinary people would have to make themselves familiar with the terms of the tax treaty, and comply with it. Coupled with the new rules for visiting or remaining in the EU / Schengen area post Brexit it was clear that the landscape for cross border living would soon change very substantially. We thought we could build a tool to help people navigate all of these requirements, and hence the idea for Ovrnite was born.
