This is a very
historic moment for the UK. 43 years
after joining the European Community it now starts the process of leaving the
EU. This is new territory for us all,
and while we hope for a smooth transition there will be a period of uncertainty
until the various negotiations are completed and we find out what the changes
will be.
Leaving the EU
will affect most UK nationals, in varying degrees, whether you live in the UK
or abroad. Expatriates living in the EU
have extra concerns such as over residency, healthcare, property rights etc.
No-one can be
sure exactly what will happen next, but we can put your mind at ease in some
key areas.
Is there anything I should be doing now?
It is expected
to take at least two years, if not longer, to work out the terms for leaving
the EU. Nothing changes in the
short-term. You will have
plenty of time to consider how to respond to whatever changes emerge.
Do I have the right to stay in Spain?
Speaking on 24th
June, the acting Prime Minister, Mariano Rajoy, said that in all likelihood the
procedure will last at least two years, that the rights of Spanish citizens in
the UK remain unchanged for that period and the same can be said for British
citizens residing and working in Spain.
Looking ahead,
with so many EU nationals living in the UK and vice versa, we would expect new
bilateral and multilateral residency agreements to be worked out, and these
could maintain the current benefits of EU membership for expatriates.
What about healthcare?
As with residency,
your current healthcare benefits should continue for the next couple of years
until the Brexit terms have been ironed out.
Again, it is possible that new bilateral agreements will be negotiated
with regards healthcare for expatriates, but we will need to wait and see what
happens here. It may become
more important to have good private health insurance.
What about taxation? Will I pay more tax in Spain?
If you are resident in
Spain, Brexit will not affect how you are taxed here. The local rules will remain the same as for
all residents, and double tax treaties, such as the one between the
UK and Spain, are independent of the EU, so your existing tax treatment will
continue to apply.
For those who are
non-resident in Spain, there is a possibility that they may have to pay some
higher taxes in future, where Spain taxes non-EU and non-EEA residents a higher
tax rate than Spanish and EU/EEA residents.
What about my
investment portfolio?
If you use tax-efficient investment structures which are provided by
companies outside the UK, such as the ones Blevins Franks recommends to
clients, these are not dependent on UK rules and not affect by Brexit.
We are clearly in uncharted waters. High levels of
uncertainty, from both economic and political perspectives, is never a good
thing for investors. But the lesson learnt is not to make any rash panicked
investment decisions before the dust has had a chance to settle. Along the way
there will be good opportunities for long-term investors to benefit both from
asset allocation and sector/stock selection decisions at much more attractive
prices. The way this can be best managed is via a diversified long-term
strategic asset allocation plan.
While the
longer-term implications are difficult to predict, with professional and personalised financial advice, you can make sure
that you are prepared and in a good position to protect yourself, whatever the
future brings. Blevins Franks operates in Spain, France, Portugal,
Cyprus and Malta as well as the UK. Our advice to our expatriate clients is
provided from outside the UK and so is not affected by the vote. We remain in a
strong position to continue to provide compliant wealth management and tax
planning solutions to British expatriates in Europe and those who have returned
to the UK. As always, our priority is serving the needs of our clients.
David Bowern, Partner, Blevins Franks
Email:
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Tel: 952 809 212
To keep in touch with the latest developments in
the offshore world, check out the latest news on our website www.blevinsfranks.com
Blevins Franks Financial Management Limited
(BFFM) is authorised and regulated by the Financial Conduct
Authority in the UK, reference number 179731. Where advice is
provided outside the UK, via the Insurance Mediation Directive from Malta,
the regulatory system differs in some respects from that of the UK. Blevins
Franks Trustees Limited is authorised and regulated by the Malta
Financial Services Authority for the administration of trusts and companies. Blevins Franks Tax
Limited provides taxation advice; its advisers are fully qualified tax
specialists. This promotion has been
approved and issued by BFFM.
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