<P> Gibraltar , a British Overseas Territory , located at the southern tip of the Iberian Peninsula , is the subject of an irredentist territorial claim by Spain . It was captured in 1704 during the War of the Spanish Succession ( 1701 -- 1714 ) . The Spanish Crown formally ceded the territory in perpetuity to the British Crown in 1713 , under Article X of the Treaty of Utrecht . Spain later attempted to recapture the territory during the thirteenth siege ( 1727 ) and the Great siege ( 1779 -- 1783 ) . British sovereignty over Gibraltar was confirmed in later treaties signed in Seville ( 1729 ) and the Treaty of Paris ( 1783 ) . </P>
what territory is spain and the united kingdom in a dispute over
Gibraltar , a British Overseas Territory , located at the southern tip of the Iberian Peninsula