Spain signs Gilbraltar tax deal with Britain

Spain signed Monday a fiscal treaty with Britain on Gibraltar as Brexit nears, to fight tax fraud and money laundering via the British overseas territory.

Signed by Foreign Minister Josep Borrell, the text was to be countersigned later in the day by David Lidington, Prime Minister Theresa May's effective deputy, according to a Spanish foreign ministry statement.

It must then be approved by the Spanish cabinet and ratified by the parliaments of both countries.

The treaty was part of a deal sealed in November between London and the European Union (EU) on Brexit, as were four other bilateral deals on Gibraltar.

For Madrid, it is "essential" that Gibraltar's departure from the EU, planned for March 29, takes place "in an orderly way and in keeping with Spanish interests in terms of fighting fraud and tax evasion."

According to the foreign ministry, the text stipulates that individuals and other entities in Gibraltar must register their tax residency in Spain if that's where they earn most