The city layout is arranged in a wide semicircle around the beach and the Port of Melilla, on the eastern side of the peninsula of Cape Tres Forcas, at the foot of Mount Gurugú and around the mouth of the Río de Oro intermittent water stream, 1 meter (3 ft 3 in) above sea level. The urban nucleus was originally a fortress, Melilla la Vieja, built on a peninsular mound about 30 meters (98 ft) in height.
Economy:
The Gross domestic product (GDP) of the autonomous community was 1.6 billion euros in 2018, accounting for 0.1% of Spanish economic output.
Melilla does not participate into the European Union Customs Union (EUCU). There is no VAT (IVA) tax, but a local reduced-rate tax called IPSI. Preserving the status of free port, imports are free of tariffs and the only tax concerning them is the IPSI. Exports to the Customs Union (including Peninsular Spain) are however subject to the correspondent customs tariff and are taxed with the correspondent VAT. There are some special manufacturing taxes regarding electricity and transport, as well as complementary charges on tobacco and oil and fuel products.
The principal industry is fishing. Cross-border commerce (legal or smuggled) and Spanish and European grants and wages are the other income sources.
Melilla is regularly connected to the Iberian peninsula by air and sea traffic and is also economically connected to Morocco: most of its fruit and vegetables are imported across the border. Moroccans in the city’s hinterland are attracted to it: 36,000 Moroccans cross the border daily to work, shop or trade goods.
Transportation:
Melilla Airport is serviced by Air Nostrum, flying to the Spanish cities of Málaga, Madrid, Barcelona, Las Palmas de Gran Canaria, Palma de Mallorca, Granada, Badajoz, Sevilla and Almería.
In April 2013, a local enterprise set up Melilla Airlines, flying from the city to Málaga. The city is linked to Málaga, Almería and Motril by ferry.
Three roads connect Melilla and Morocco but require clearance through border checkpoints.
Flag of Melilla:
The flag of Melilla, a Spanish enclave in North Africa, consists of a pale blue background with the city’s coat of arms in the center.
