UK Expats in Europe and EU Expats in the UK: A Brexit update
What should UK Expats in Europe and EU Expats in the UK be doing now that ‘Brexit Day’ is upon us?
The ‘Brexit’ bill has been passed by the UK Parliament. This needs to be ratified by the EU Parliament and is what’s being processed at the moment.
If the EU Parliament rejected the bill, then the Treaty wouldn’t be ratified. However, the law that’s gone into the European Parliament is a two-line bill stating that the EU/UK Withdrawal Treaty is submitted and agreed, and recommending that the EU Commission accepts that and implements it accordingly.
Brexit to take place on 31st January 2020, as planned
So Brexit is going to go ahead as planned on 31st January and there is nothing to practically stop that process.
Which means that now, UK Expats in Europe and EU Expats in the UK should be planning ahead and looking forward to what’s to come.
Brexit Trade Deal
The Trade Deal has been the big issue for many people.
The EU are setting out their terms of how they are going to deal with that, organising training programmes available to EU staff that show them how they’re going to progress with the trade negotiations.
The EU is very much sticking to the political declaration of intention to get the agreement made before the end of 2020. It will be interesting to see if that does happen.
If it doesn’t, the option to extend the transition period has been removed by the UK. The recent intention of the EU is to consider an extension and there is still talk by the new EU Trade Commissioner that he would like to do that.
We have however, just seen (with China and the USA) that the EU can come up with a trade deal that will allow us all to move forwards. If it can do the same for the UK, an extension would not be necessary.
Brexit Withdrawal Treaty – what are Expats’ rights?
EU Citizens rights are included in the Withdrawal Treaty but this is a grey area for Expats.
The UK unilaterally implemented a guarantee of EU Citizens rights, so all EU Citizens living and working in the UK before the end of the transition period (end December 2020) have the right to apply for full settled status.
This allows them to remain in the UK living and working the rest of their life without the Citizenship requirements to live, work and get benefits.
This is an important step that’s been taken.
At this time however, this step has NOT reciprocated by individual EU countries towards UK Citizens. Part of that is seen in the messaging that the EU is providing. They are emphasising in everything they’re saying that they must have a unified approach.
How will Brexit affect Expats’ rights?
There are 27 countries left in the EU.
Some of them will have different priorities on labour, fisheries, trade and motor vehicles. Each different country will have its own vested interests.
The EU’s challenge is to come up with something that meets all the countries’ expectations and for the UK to agree it before the end of 2020. That has the potential to be difficult.
What should EU Expats in the UK do post Brexit day?
In the meantime however, we can be clear right now that EU Citizens in the UK can apply for settled status to live and work and (unless anyone has got a severe criminal record) nobody should find themselves refused this.
Some EU Expats in the UK haven’t made the application or they’ve been asked for more documentation.
If any EU Expats need help with that, then please contact ProACT Partnership at our UK office.
Citizens’ rights are not universally reciprocated by the EU countries, which is partly because we’re waiting for Brexit to happen and partly because of the unified approach being maintained by the EU.
After the 31st January, the UK will be outside the EU (albeit going along with the rules until the end of the transition period).
Some countries have already stepped forward in terms of residency rights, healthcare rights and the ability to work.
What is confirmed is that for all Expats Living and Working Abroad in the EU, we know what the rules are (regarding healthcare, residency, working rights, social insurance benefits and forming a business and trading) for EU Citizens and we know what those same rules are for non-EU Citizens.
What should business owners do next?
Business owners should plan ahead by adapting their businesses to have an EU branch or an EU representative if that’s what’s needed to meet their needs.
What should UK Expats in Europe do post Brexit day?
UK Expats have still got until the end of 2020 to secure their residency registration in their EU country which will lead to an EU equivalent of settled status called Permanent Residency.
Any Expat that has not yet confirmed residency registration or does not have Permanent Residency status if that’s what’s needed, should take action on that this year – that should be your number one goal – to secure the long term ‘Living and Working Abroad in the EU’ for yourselves.
Any Expats that want help with that should contact us at ProACT Partnership.
When will Expats know if their Citizen’s rights are reciprocated in the EU country they live in?
EU Citizens rights are well protected in the UK, with reciprocation being sought with the EU.
That process can start after January 31st when the legislation goes through, but it’s only going to be then that the EU start drawing up their terms of reference for that trade negotiation deal.
It is a Bureaucracy so we’ll have to see what happens.
Meanwhile UK Expats in the EU and EU Expats in the UK can plan ahead knowing what’s required for non-EU Citizens and what’s going to be required for EU Citizens.
We’ve got that transition period where Expats can make that move now: Make that relocation, adapt their business, protect their properties to secure their future. We’ll be looking at how things evolve in the next couple of weeks.
Meaty action should start in March, but Expats have still got the same rights for this year.
What should you do next as an Expat Living and Working Abroad?
So whether it’s your pension, whether it’s your tax status, your residency, your property, your business, if you are a UK Expat living in the EU or an EU Expat living in the UK, take action now to protect your assets, to protect your income, protect your lifestyle and to protect your family.
This will ensure you can enjoy Living and Working Abroad without any material change going forward.
How will Brexit affect Expats’ Inheritance Tax Liability
We’ve been talking recently about protecting assets and the fact that there’s a different arrangement for wills and estates in the EU compared to the UK.
It could be that UK Expats (even though they are still Living and Working in the EU) can still end up having to pay UK Inheritance Tax, so if you’re concerned because you’ve got UK assets or because you might still be deemed to be domicile in the UK, you should contact ProACT Partnership for a free review with one of our consultants.
If you’ve got property, investments and/or business assets anywhere around the world and you come from the UK, you’ve got a potential domicile liability of Inheritance Tax on death of 40%. That can make a big difference to a bereaved family.
There are concessions in the UK and there are some allowances - those might cover it. It’s not always charged on first death, but that can create a complication for a widow(er) or the children of a family in later years.
If a UK Expat needs to relocate back to the UK for business, work, health, old age (nursing care needs for example) then that can undo years of Expat life. The risk is that all those years Living and Working Abroad are ignored and the Expat finds themselves liable to UK Inheritance Tax.
Free review, help and advice for EU Expats in the UK and UK Expats in the EU
Lots of things to consider!
A free review with one of our consultants at ProACT will help you with all of this.
In addition, we’ve got guides available online to help you better understand your rights.
Alternatively, visit our Facebook page Living and Working Abroad. You can ask questions and our online client services team can assist you and give guidelines on how EU Expats in the UK can secure their Citizen’s rights and how UK Expats either already in the EU or considering relocating to the EU can take advantage of the opportunities moving forward. Lots of opportunities out there – it’s a very exciting time!
Will the bells ring out on Brexit Day? Who knows?
We will try and feature that, together with more information as and when it becomes available. It will be a big event. It’s a complete change in the law and its structure within the UK.
In reality, it won’t make that much difference day to day. The transition period is ahead and we now know that this next 11 months is the time for Expats in the UK and in the EU (knowing what we do about EU and non-EU Citizen rules and regulations) to take action to protect their families and businesses Living and Working Abroad.
The Complete Guide to Brexit for Expats Living and Working Abroad
For more information about Brexit and its impact on UK and EU Expats Living and Working Abroad, download our complete, updated guide from our online store.
