Gibraltar’s newly signed tax treaty with Spain could have significant implications for gaming operators based in the jurisdiction, with one company already informing employees that they can no longer work from home if they live across the border in Spain.

The precautionary notice by the operator is related to potential tax liabilities which could be incurred by the company, if employees who are deemed to be “decision makers” live and work in Spain.

In theory, an operator’s activities could fall under the scope of the Spanish tax system in such a scenario, although it is unclear if the Spanish government would make such a claim.

According to the Gibraltar Broadcasting Corporation (GBC), the government has denied that the new treaty changes any tax laws, stating that it merely sets out Spanish tax law as it existed before.

Gibraltar Chief Minister Fabian Picardo said that companies should remind their employees to “regularise” their own positions as Gibraltar moves forward in a new environment of cross-border tax certainty.

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