They won't give you the Spanish passport unless you give them the UK one. Standing in a Spanish police station shouting about bilateral agreements won't work.
I think at the moment this doesn't happen, but maybe it could.
Many months ago at a public meeting, I listened to the British Consul talking about this subject. She was very careful in what she said, because she definitely can't be seen to encourage anyone to break the law, but she made it very clear that:
- British people (and people of most other nationalities) who get Spanish citizenship are obliged in Spanish law to give up their other nationality but...
- In practice nothing is ever done to check that you have given up British (or whatever it may be) citizenship
- You cannot lose British citizenship by accident. If you haven't successfully applied (and paid) to stop being British, you remain British
I was left with the very clear impression that quite a few Britons who have gained Spanish citizenship probably keep their British passports safely stored at the bottom of their sock drawer or wherever.
There are two obvious problems with this. Some people don't like breaking the law and might feel very uncomfortable taking an oath to abide by the Spanish constitution and law and then, as their first act as a Spanish citizen, deliberately breaking the law. The other problem is that the practice of not checking that the new citizen has given up their other citizenship could easily change.
I read somewhere - maybe on the parainmigrantes website, I'm not sure - that there had been a suggestion to tighten up the procedures on this. Even if this comes to nothing for the moment, it seems to me that if relations between the Spanish govt and the British govt worsen, as they could for various reasons (including Gibraltar), and the Spanish government gets wind of tens of thousands of Britanoguiris taking the piss by deliberately breaking the law in this way, they might do something about it.
There are grounds for optimism.
Sánchez spoke some time before becoming PM about ending what he saw a anomalies and anachronisms in Spanish law about nationality. He doesn't agree with one law for people from some countries and another for the rest. If the residency requirement were equalised (generally it's either two years or ten years depending on where you're from) and dual citizenship were generally accepted, instead of just being allowed with some other countries, things would be easier for many people. Some reforms were in PSOE's last election manifesto, I think, though I haven't got time to look that up now. Unfortunately, we can't expect any of these reforms soon, because it would be difficult or impossible to cobble together a parliamentary majority and these questions are not a very high priority for the government.
I am more optimistic about the government adopting a generous policy towards resident Britanoguiris in the event of a no-deal Brexit, but I do wish they would get on and announce (or decide and then announce) what their policy is. After all, there's little more than six months to go. I wish the ambassador, Simon Manley, and the British Embassy would make this their top priority now, instead of farting on about what a wonderful display the Red Arrows put on above Menorca!
Personally, I have no particular intention of applying for Spanish citizenship when I clock up 10 years in Spain. I am lucky enough to be Maltese and so I will continue to be an EU citizen. There are other British people in a similar situation, of course. There will be a lot more Irish Britons than Maltese Britons, but most British people don't have this option. Also, many people who have applied for Spanish citizenship have their applications stuck in an enormous backlog.
People are worried. A decent policy announcement from the Spanish government would be very welcome. Even something as non-specific but generous as the comments the then Foreign Minister, Alfonso Dastis, made late last year on the Andrew Marr Show would be a big step forward. The Sánchez government has chosen to say nothing about it, but unfortunately a no-deal Brexit is a definite risk.
In fact, it's the default outcome (if there's no deal and no cancellation of Brexit) and, since "nothing is agreed until everything is agreed", the provisional agreement over citizens' rights will not become a treaty.
I would prefer the agreement over citizens' rights to be 'ring-fenced' and made a treaty ASAP, but I have seen no indication that the EU agrees with that.