We have frequently discussed residency in Europe during the Brexit transition period, both in person and here on the ProACT Partnership blog.

Residency in Europe is a critically important talking point for Expats living in the Schengen area, for those in the UK considering a move to an EU country imminently, and for anyone used to travelling between the UK and property (or multiple properties) within Europe.

The only way for UK Expats to be certain of non- residency is to spend less than 16 days in the UK.

For a number of reasons, particularly in 2020 with the Coronavirus situation, this will not be the case for many Expats.

Tax ties and residency in Europe

A home, a family, work or an extended stay all create ties to the UK, which limits the maximum number of days you can spend in the UK during the current tax year (and possibly the following tax year too).

Deemed an exceptional event, the corona crisis has meant that additional days are able to be spent in the UK during this tax year, but it could be at the expense of limiting next years’ days in the country.

The coming months will be an important time for Expats to plan travel and days out of the UK, so that they protect their non-resident status in 20/21 and next year (21/22).

Holiday homes in Europe for UK residents

Expats with holiday homes have different residency concerns.

Under international law, everyone can go on holiday for 90 days without needing a residency permit or visa.

A travel visa may still be required, but the UK have a large number of bilateral visa-free travel arrangements that won’t necessarily be impacted by the EU.

If you own an overseas property, you could spend up to 90 days per trip without triggering any residency permit needs.

With Brexit this will not change. If you own property in an EU country, then you could stay up to 90 days, twice a year, without becoming a local tax resident, or needing any resident permit or visa.

If you want to relocate and become an Expat tax resident, then a residency permit or visa is required.

UK or EU Expats can still apply for residency under existing EU rules before the end of the 2020 transition period.

From 2021, UK or EU immigration rules will apply on a country by country basis.

Residency Review

Consider your residency needs in this year of transition.

How many days have you spent in the UK during the lockdown period (or otherwise), and when will this impact on your non-resident tax status?

How will your non-resident status be impacted this tax year and next by lockdown’s ‘extended stay’ rules?

Will you need a resident permit in the EU for Living and Working Abroad?

Or can you visit your EU holiday home using up to 90-day holiday visa trips?

Ask ProACT How

We would love to hear your questions, and maybe next time we will feature those questions on our Living and Working Abroad vlogs, blogs and podcasts.

Ask your questions here www.proactpartnership.com/contact-us

Further reading on residency in Europe

In the meantime, here is some further reading in relation to residency:

Tax Residency for Expats During Lockdown

Brexit, Expat Residency and Travel

How many days can UK Expats spend in the UK and retain non-resident status