Gibraltar is a city and British Overseas Territory[6] at the southern tip of the Iberian Peninsula. It is 6.7 km2 (2.6 sq mi) in size and is bordered by Spain to the north. Over 32,000 people, primarily Gibraltarians, live in the densely populated town area at the foot of the Rock of Gibraltar, which dominates the landscape.

During the War of the Spanish Succession, Anglo-Dutch forces captured Gibraltar from Spain in 1704. The Treaty of Utrecht of 1713 granted Great Britain permanent possession of the territory. Because it controlled the narrow entrance and exit to the Mediterranean Sea, the Strait of Gibraltar, which is only 14.3 kilometers (8.9 miles) wide, it became an important base for the Royal Navy, particularly during the Napoleonic Wars and World War II. Due to the fact that it serves as a choke point for half of all seaborne trade, it continues to hold strategic significance. Tourism, online gambling, financial services, bunkering, and other activities make up the majority of Gibraltar's economy.

Spain's claim to Gibraltar's sovereignty is a sticking point in relations between the United Kingdom and Spain. In a 1967 referendum, Gibraltarians overwhelmingly rejected proposals for Spanish sovereignty and shared sovereignty. Nevertheless, many Gibraltarians speak both Spanish and Llanito, a local dialect, to maintain close economic and cultural ties with Spain.

The United Kingdom and Gibraltar left the European Union on January 31, 2020. The UK and Spain came to an agreement in principle in December 2020 on a basis on which the UK and the EU could negotiate terms for Gibraltar to participate in parts of the Schengen Agreement that make it easier to move across borders.