How to Secure EU Residency
Updated 2/12/2021
ProACT Sam looks at securing EU Residency Rights before or after Brexit
The UK left the EU on 30th January 2020, with a transition period that ended on 31st December 2020.
RENEWABLE TRANSITION
The UK government have made it clear in the summer they will not entertain any extension to the transition period to roll over the UK’s binding to EU rules until a trade agreement in the future.
This would be a neat solution for the EU, the UK have their Brexit, but everything could stay the same during ongoing transition for the UK trade and regulations to stay under EU common market rules.
The UK don’t want that.
That is the issue being raised in the end game negotiations as the UK hold out for a clean break and new trading arrangements.
The UK won’t accept that.
NO DEAL THEN
There is no such thing as no deal. There are international treaties for customs and trades run through the World Trade Organisation that allow for trade to continue at agreed rates.
The EU already trade with many countries under WTO rules. The UK could become one from January 2021. Trade would not stop, things would continue under new rules.
The EU has its own internal customs mechanism - VAT. Trade is free within the EU, but you have to charge the EU VAT Sales tax. As the UK moves out of the EU, it is no longer obligated to be part of the VAT system, VAT from the UK stops flowing to the EU coffers, money is kept at home for UK government spending projects. This is where the manifesto pledges are paid from.
UK trade with the EU with no deal would then be subject to EU rules, for the EU they would charge an import tax of say 10%. The UK could reciprocate, and then we have the start of a trade deal under WTO rules, or the UK could offer import free of tariffs and customs - a radically different uk approach.
BAND AID
Most likely is the trade negotiation would go to the next step, and produce a temporary agreement to meet the needs of EU & UK trading business and soften the transition.
A more formal deal may still be negotiated down the line but meanwhile the sticking plaster of a temporary trade deal would heal the rifts between the two sides with a minimal impact on business.
It may even look the same as the transition period: as if not much has changed day to day.
Like many Brexit deadlines, we could worry about a deadline and then find when we get there everything will be ok.
RESIDENCY RIGHTS
EU Citizen rights are already protected in the Withdrawal treaty.
Any UK or EU Citizen registered to be Living and Working Abroad as an Expat is free to remain for a lifetime with their family in that country of residence.
That means EU Expats in the UK and UK Expats in an EU Country.
Those rights are extended into the transition period meaning that any new Expat residency registrations before the end of December 2020 also qualify for the right to remain for a lifetime.
This does not give UK Expats the freedom of movement around the EU, but it does allow them freedom of movement between the UK and their EU country of residence.
WORKERS RIGHTS
Non EU citizens can generally come to live and work in any EU country including the UK before Brexit and after.
Again UK individuals and companies will come under non EU rules from January 2021.
A UK company or contractor can get around potential restrictions for cross border trade by registering an employee or branch or company in the UK. P&O Ferries have registered ships in Cyprus, Easyjet has an Austrian business for example.
Freelancers could still work with service companies in the UK and register to carry out the work in their EU country of work and residence.
This method won’t change with the end of transition. Business set up rules are based upon local country tax rules not EU trade rules.
Non EU citizens have different requirements for residency status, they could have higher income requirements, medical requirements and waiting periods for social and medical health services.
Registering under EU Citizen rules allows easier and quicker registration without higher hurdles to pass.
COMPLICATIONS
Non EU citizens could have to pass language tests to be granted residency and working visas.
While EU Citizens have freedom of movement to Living and Working Abroad within the EU, non EU citizens could be required to have job offers and higher income thresholds for residency. Germany requires a working contract with Euro50k Income or the UK £25600 from January 2021.
There are differing qualification periods for social welfare benefits and state medical cover for non EU citizens. The EU Social Insurance Agreement does not apply to non EU citizens so newly registered expats may have a longer qualification period to receive any such benefits.
That may necessitate a requirement for Private Medical Insurance.
OPTIONS FOR NOW
Any Expat already resident in their EU or UK could secure their initial residency (pre settled status) before the end of December 2020.
This includes newly relocated Expats, as long as they can register as resident before the end of December 2020.
If a UK or EU expat has lived longer than 5 years resident in that EU country or the UK, they should update their residency to Permanent (settled status).
This right to transition to permanent settled status exists for EU expats registered in the UK for pre settled status by 31st December 2020.
For UK Expats a Permanent Residency option remains after Brexit with higher burdens of proof, including income, healthcare and language skills.
UK Expats should secure any permanent residency rights as soon as possible before 31st December to avoid higher burdens of proof and requirement being applied.
The world will not end in December 2020, things will be somewhat the same but different.
ProACT Know How
For help, guidance or a free review of your residency situation contact us.