The Spanish town of La Linea will be given a special tax statute that will cover activities in the insurance, financial and online gaming sectors.

Spain’s Socialist Workers’ Party of Andalusia signed a deal with the La Linea’s 100x100.

Located just north of the Gibraltar border, where companies are feeling anxious due to Brexit, La Linea has recently emerged as a possible solution to firms looking to ensure continued access to the European market post-Brexit, sayscaptiveinsurancetimes. 

This deal hopes to draw these companies to La Linea by offering unique tax advantages.

Nigel Feetham partner at Hassans International Law Firm said: “We may be seeing a new captive domicile in the making.”

“For that to happen, it was clear to me that La Linea needed to enjoy a special tax regime distinct from the rest of the Spanish mainland which has significantly higher corporate taxes than Malta.”

He continued: “While this is not going to happen overnight, the idea certainly appears to now be gaining new traction.”