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If you are a citizen of a European Union (EU) member state, you can simply show your passport or - if applicable - national identity card to enter/leave Gibraltar. Border controls are in operation between Spain and Gibraltar - Gibraltar is outside the Schengen passport-free travel area. Even though it is a British overseas territory, passports are needed for travel to/from the UK. Visas for travel to Gibraltar are required by some non-EU citizens - they should be obtained from a British Embassy, High Commission or Consulate (or, if in the UK, from Counter 40 at the Passport Office, Globe House, 89 Eccleston Square, London, SW1).
Gibraltar Airport mainly has flights to and from the UK. The Airport is located very close to the border with Spain; it has separate exits/entrances for Spain and Gibraltar - for passport control purposes.
By car or on foot
Leaving Gibraltar by car can be very tedious - there is often a long queue for Spanish customs / passport control. Spanish Customs will ask if you have any items to declare and will search cars if they think it is necessary. Gibraltar Customs may do the same.
You can either drive through in your car or walk across. If you drive you could be held up (as long as 3 hours) at peak periods of the day to get in or out as volumes of cars increase and Spanish customs to get into Spain tend to ask if you have anything to declare. Spanish customs officers can be very strict (and awkward at times). Take care to only leave Gibraltar with the duty free allowance. Petrol is very cheap in Gibraltar so a lot of Spanish cars come in to refuel.
If you don't have a car, you can walk across the border. You can not use a Gibraltarian taxi to leave Gibraltar and drive into Spain or vice versa. No. 5 runs regularly and takes you to the entrance to Main Street and the centre of town. Walking into town will take about 15 mins and you will have to walk across the airport runway - strange but true.
Don't try to leave when a plane is due to leave or arrive the road will be shut for 15 minutes and a queue will form. If visiting from Spain, it's easiest to park in La Linea and walk across the border into Gibraltar. All buses from outside airport will take you in right direction. No.5 best for going into town. No. 4 for the supermarket and hospital. No. 2 for Rock Hotel and lighthouse. Taxis are plentiful and not cheap, but probably what you would expect, around £7.00 to Rock Hotel or £4.50 to hospital.