What Will be the 3rd Way for EU Brexit?
What Will be the 3rd Way for EU Brexit?
Sam Orgill of ProACT Expatriate Advice considers what we know so far and recent developments in Brexit and the 4 areas of impact Expats should consider and review to protect Residency Rights, Tax on Income, securing Overseas Property, Medical Cover post Brexit.
Torpedoed
The British government find itself vetoed out of a financial settlement on EU Brexit not by one of the 27 remaining EU states, but by a King in the North, the leader of the Northern Ireland ‘government’ effectively vetoed the Financial Settlement to which the EU member states had agreed in principle.
Instead of announcing the way forward for trade talks this week, the British government is left scrambling for a 3rd way to EU Brexit.
Traditional negotiation seeks a win-win deal with a ‘no-deal’ option if one side doesn’t feel they win by the deal on the table.
After the win-win agreement was vetoed from within the UK – not by the EU, a weak UK government has to find a 3rd way that keeps the EU on side along with the King makers within the UK – Scotland, Northern Ireland, Wales…..
A 3rd way could be a free trade deal between the Irish and UK after Brexit, just like the old days, – but Ireland can’t agree to that as a country, it is bound within EU trade agreements, or is there a 3rd way?
Or a 3rd way could be the UK staying inside the European Economic Area (EEA) agreement as do Norway, Switzerland, Liechtenstein and Iceland. i.e. not in the EU but within the single market union on most issues. But this is categorically rejected by the current UK government.
So a 3rd way is out there. It may look like the current proposed deal, but with an Irish accent.
Brexit Means Brexit
The British Government are resolute on leaving the EU, and leaving the single market, and ending freedom of movement of people, goods, services and capital within the EU under the EU rules. British law may look the same after Brexit, but it won’t be governed by the European Court of Justice in Luxembourg, it will be governed from the UK Supreme Court in London ( they may revert to the old name to the High Court….)
The position of the UK government is clear, and the negotiated agreement is in place between the EU and UK, close by. Expats could plan for this outcome in confidence, if they believe this British government can survive and implement EU Brexit.
How will the current situation impact EU Expats connected to the UK?
4 Review Steps for Expats Planning for EU Brexit
1. The UK will EU Brexit on 29/3/2019 followed by a potential transition period of two years. During this time there should be no change in rights for living and working abroad in the EU for British in the EU or Expats living in the UK. After this time in 3.5 years you will have to have visa and residency rights as a non EU citizen. All these arrangements exists for non EU nationals, in each country. Review the requirements for the countries in which you are living and working. Take steps to secure residency or dual citizenship and retain rights to live and work in the UK and EU.
2. Tax agreements are not affected by EU Brexit. The tax arrangements will still be the same after EU Brexit. Be aware of new Automatic exchange of information rules impacting expats living and working and trading overseas. Review the tax liability you have in your country of tax residence. Be aware future residency and visa rights may have a minimum income requirement.
3. Protect your overseas property assets. EU countries have common laws for Wills and this may include force heirship that means unmarried partners and step children don’t benefit. There may also be capital gains taxes payable on sale of overseas property. Under automatic exchange of information overseas property could suffer inheritance tax up to 40%. Make a Will for overseas property and consider using a trust to protect you overseas assets.
4. Universal Medical Cover from a State Health scheme, is made available throughout the EEA (including EU counties) using EHIC cards, until the end of the transition period after Brexit. Even so the cover has limits and is not directly controlled by the EU. After Brexit Expats may need private medical cover, depending up how the UK and other EU countries react to bilateral health agreements after Brexit and transitions. Consider how you will cover your needs in the coming years. Private cover now could be a future cost saving.
Find a Way
There remains a long way to go and many ups and downs before and after Brexit on 29/3/2019. Agreement over the financial settlement has been agreed in principle between the EU and UK. The political situation has torpedoed the deal this week. The EU insist the financial agreement is made first and can be vetoed by any of the 27 EU member states, and the Irish republic played this card. The UK & EU still found a way to agree, include the Irish, but in a way sufficient to draw a veto from the key Northern Irish MP’s, from within the UK, in a way to rattle the Scottish Nationalist cage too.
In the EU game of thrones the king makers will continue to seek a 3rd way. The final agreement will be similar to the current proposal, if we get that far.
Free Review 4 Steps for Expats to Consider for EU Brexit
ProACT Expatriate Advice offer free review, newsletters and guides for Expats. ProACT offer to review the potential impact of Brexit on your family or business living and working abroad, including:
1. Will I need a visa for Residency Rights, Could I get an EU UK or Cyprus Passport now?
2. How will Tax on Income change, what new taxes may arise,
3. Protecting Overseas Property using a Will or Property Trust to avoid Probate Fees and Inheritance Tax
4. What Medical Cover post Brexit will you be entitled to, or need, in the UK or EU or Cyprus.
FREE REVIEW
ProACT Expat Experts know from experience over 20 years how to protect your Family and Business overseas including property, pension, investment and business assets.
ProACT Tax Saving Expat Experts can help each step of the way Living and Working Abroad.
Now we want to hear from you. What are your EU Brexit Questions? Comment on our Blog or Contact-Us
You could Contact Us for a Free Review Online or in our Cyprus Office.
www.proactpartnership.com/contact-us
Sam Orgill
ProACT Partnership - Tax Saving Expat Experts
www.proactpartnership.com info@proactpartnership.com
TEL: +357 26 819 424
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