Gibraltar is located in the western Mediterranean at the southern tip of Spain, and the coast of Morocco is only 14 miles across the Strait of Gibraltar. Gibraltar has an area of two and a quarter square miles and is connected by a narrow isthmus to mainland Spain. The population is about 30,000 people, of which 20,000 are migrants. People are mainly of Genoese, Maltese and Portuguese descent and speak two languages in English and Spanish. There is a small but significant Jewish population, some Indian merchants, and more recently a large influx of Moroccan workers. The official language is English, the official currency is pound sterling, and the coins of Great Britain and Gibraltar are in circulation.
Since 1704, Gibraltar has been under the protectorate of the British crown. It was transferred by the Kingdom of Spain “forever” to the British Crown in accordance with the Utrecht Treaty of 1713. In 1967, and before the adoption of the new Constitution, the people of Gibraltar held a referendum to determine whether they want to remain British or fall under Spanish sovereignty. The result of the referendum, which was overwhelmingly in favor of the British, and the new Constitution of 1969 angered the dictatorship of General Franco so that the Spanish border with Gibraltar was closed in 1969 and was not fully open until February 1985 (as a precursor to Spain's accession to the European Union in 1986).
Gibraltar entered the European Union in 1973 by virtue of the entry of the United Kingdom into the Union in accordance with the provisions of Article 227 (4) of the Treaty of Rome, which extends the provisions of the Treaty to those "European territories for which external relations are a member state".
At the time of Gibraltar's entry into the EU, the Government of Gibraltar agreed to exempt from the common external tariff (Customs Union), general agricultural policy and value added tax (VAT) in accordance with Article 28 of the British Act of Accession. Confirmation of the exclusion of Gibraltar from the Customs Union is carried out in accordance with Article 3 of the Customs Code (as amended).
The 1969 Gibraltar Constitution gives legislative power to the Governor, who is the Queen's representative, and to the Gibraltar Parliament. In the preamble to the Constitution, the British government guarantees the people of Gibraltar that this territory will remain part of Her Majesty’s possessions, unless otherwise provided in an act of parliament, and that “Her Majesty’s government would never enter into an agreement under which the people of Gibraltar would transfer under the sovereignty of another states contrary to their freely and democratically expressed desires. ”
Although this is by definition a dependent territory, Gibraltar enjoys greater independence in economic policy. The British Foreign Office is directly responsible for Gibraltar's foreign policy, defense, and security affairs, and the Gibraltar government and members of the Gibraltar parliament, who report to the Gibraltar parliament, are involved in internal affairs. Gibraltar has its own legal system, similar to the UK system and based on English common law, but with its own laws, which are called ordinances, which are passed by the Gibraltar Parliament.
The Gibraltar Companies Act derives from the English Companies Act of 1929 and has evolved independently from that date. The latest consolidated version of the Gibraltar Companies Act 2004 has just been published and is still a hallmark of the English Companies Act.