Looking Within - Glazed OverLoad
ProACT Sam looks forward to EU Brexit for Expats, despite the Political Naval Gazing become overloaded. Could the UK end up being bored out of the EU? or will the UK throw in the towel and beg for the pain to end?
Either way the world will go on after whatever Brexit deal is agreed.
The noise is political and business vested interests.
With any change there will be winners and losers - whatever way we grow forward.
Expat family and Business has the choice of wait and see or to be planning ahead for the changes that will come.
In this article ProACT know How looks forward to changes in the year ahead for Expats, with or without Brexit, deal or no deal. We offer reassurance of what we know we can do today to look forward to Brexit.
7 Changes Impacting Expat Family & Business in 2019 - Without Brexit
If you look beyond Brexit there are changes ahead in the coming year to look forward too including:
Changes to cross border VAT treatment
Changes to cross border frontier workers Social insurance
Changes to bi-lateral tax treaties between UK, global and EU countires
Ongoing progression of online tax, immigration, medical and social insurance returns.
Changes to National Health Scheme in Cyprus
Changes to Taxation of Public Service Pensions
Progressive development of Automatic Exchange of Information and its impact on Expat Bank Accounts, Saving, Pensions and Investments
6 Reasons for the Logjam on Brexit Deal or No Deal
The 'Deal' is the withdrawal treaty negotiated between the EU Commission and Theresa May for the UK.
1. It is clear now this negotiation was flawed in its concept as there is no democratic majority to vote for it within the UK Parliment or the EU heads of state.
2. The EU are holding out for the deal to be agreed, as it suits them. The deal sets out to the maintain the status quo with the UK until the end of 2020. The tranistion period.
During this transistion a new 'bilateral trade deal' is to be agreed between UK and the EU.
This is where the issues arises.
3. Some demand a new trade agreement now, but the EU cannot and will not do this until the UK has left the EU.
4. Some demand no strings be attached to the transition period, the backstop. The EU wont agree this because they want to protect their single market.
5. Because of perceived 'bad faith' in EU negotiation tactics, some in the UK dont want to be trapped in such backstop transition.
6. Many fear 'No deal'. They predict the sky will fall in, but why would it? It did for dinosaurs 65 million years ago, after a giant meteorite hit earth, with a full scale disaster affecting earth for enough time to wipe out dinosaurs, but not life, on earth.
No deal Brexit would not be a full scale disaster. It would means that some changes would be more sudden. This would affect family and business travelling, trading and living cross border, but would not affect anyone without such cross border interests.
Despite the claims in the media, the EU and UK governements have largely both fully prepared for no deal Brexit.
If the UK leaves with no deal on the current Brexit day of 12th April, then UK Expats, are third country citizens next day. As are EU Expats in the UK.
7 Items of Reassurance for Expats over Brexit
1. Deal or No Deal the EU and UK have not changed their planning to fully implement the post Brexit relations from January 2021 - the end of the transistion period.
If Brexit day is delay to 12th April, 22nd May or later, no extension of the transition period is planned. The EU and UK have no doubt got a new trade and relationship agreement drafted, its just the legal negoications cannot begin until the Withdrawl Treaty is agreed and ratified or Brexit with no Deal occurs.
2. The UK have opened their Settled Status scheme for EU expats in the UK on 30th March on time. This allows EU Expats in the UK before 12th April to apply to remain Living and Working Abroad in the UK for their lifetime, with their families still able to join them.
EU Expats can still apply for Duel residency after 5 years in the UK.
3. Cyprus are the first EU country to reciprocate and to confirm formally that there will be no change for UK Expats and continue to treat UK Expats Living and Working in Cyprus with the same 'EU Citizen Rights' as EU Citizens.
4. Before EU Brexit day, or the end of the transition period, UK Expats in Cyprus can still apply for Permanent Residency status. This gives free movement between UK and Cyprus for 10 years after Brexit.
UK Expats Can still apply for Duel Residency after 7 years Living in Cyprus.
5. The New UK-Cyprus Double Taxation treaty between Cyprus and UK confirms Tax Treatment is not impacted by Brexit so UK Family and Business will still be able to:
Protect Property, Business and Investments from Capital Gains and Inheritance Tax
Pay 0% tax on savings and dividend income
Pay 5% tax on pensions with an extra £12500 personal allowance for Public Service pensions
Register a Business in Cyprus and continue Living and Working Aborad in Cyprus or UK
6. The EU Parliment has passed leglisation recognising the UK as a Visa free country post Brexit.
7. The EU Social Insurance and Healthcare Agreement continues for Expats before Brexit or the end of the transition period. After that date then new bilateral treaties betwenn the UK and individual countires will need to be put in place.
- The Withdrawl treaty keeps Expats Medical Cover in place until the end of the tranistion treaty.
After Brexit or the end of transistion, S1 and EHIC cover will no longer apply under the EU Agreement. This cover stops
New Bilateral Treaties may be put in place for Expats, but this is not declared or known.
Expats paying Social insurance in their country of residence can be covered under local rules for National Health Medical Cover
Cyprus Start a National Health Service in June 2019
Expats that may not be covered should use Private Medical Cover, or Travel Insurance, as they would if living and working in say the middle east, or asia.
ProACT Know How
Stay in touch with what you can do to protect overseas property, pensions, business and lifestyle, for Expat Family and Business living and working abroad.