ChiFRA

UK nationals living in Spain or owning Spanish property can feel reassured that little will change while the Brexit transition period is underway. But with no certainty beyond 2020, time is running out to secure your position and lock in guaranteed protection.

What is at stake?

If you are lawfully settled in Spain before 31 December 2020, you can acquire guaranteed citizens’ rights under the UK/EU Withdrawal Agreement. This provides the right to remain indefinitely and access the same social security, education and employment opportunities as today, for as long as you remain resident in Spain. You would also be entitled to existing Spanish healthcare benefits and annual cost-of-living increases to the UK State Pension.

However, anyone arriving from 2021 may have restricted movement in Spain and be subject to a new residence regime to access similar rights. While the post-Brexit residence rules are yet to be confirmed, the requirements may be more stringent and the process more complicated than today.

As such, there is everything to gain by taking steps now to become Spanish resident and come under the protection of the Withdrawal Agreement.

Andrew Southgate, Private Client Manager, Blevins Franks

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Now that the UK has officially left the EU, the transition period is in motion and set to run until 31^st December 2020. But has anything actually changed for UK nationals living in the EU and do we have any certainty for 2021?

After four years of uncertainty, we can now expect Brexit to start taking effect after the transition period ends on 31 December 2020. While nothing should change for UK nationals living in Spain until then, the countdown is on to prepare.

Once the UK sheds its EU obligations – including freedom of movement for capital – the government gains more scope to tax UK nationals abroad. Pensions are a particularly likely target. With only months to go until things change, there is increasing urgency to review your pension options and take advantage of current opportunities before it is potentially too late.

The New Year is a time when most of us take stock of our situation and set goals to improve our health, happiness, lifestyle and wealth. This year, make it one of your resolutions to check your financial planning is on track to meet your needs and protect your family’s long-term financial security.