In this week's blog, we will logically talk about Brexit and how it can affect British expatriates living in Spain. First of all we want to send you a message of tranquility and support.
Do not panic, nothing has happened yet.
Although the vote in favor of Brexit is a fact that has important legal implications, the fact is that today, the legal situation of British expatriates in Spain is the same as it was a month ago and that of a long time ago, therefore, at the moment there is no effective change in the situation, nor should immediate or hasty decisions be made.
The disengagement procedure of the European Union will be a very slow process. We have come to hear that expats could lose their rights to their property in Spain, which is absolutely false.
What will happen in the future?
Neither we, nor surely anyone at this time can answer this question, it is likely that the United Kingdom will join the European Economic Area, as is currently the case with countries such as Norway, Iceland, etc. which would allow the free circulation of British citizens in Spain. New relations with the EU or even specific agreements with Spain could also be established given the high number of British residents in the country, as is the case with countries such as Switzerland.
.- Retirees living in Spain ask themselves whether or not there will be an obligation to obtain a residence permit and what the requirements will be, or whether they will be entitled to access medical treatments, health coverage (social security), etc.
.- Workers and companies. Outside the EU, in principle British citizens would not have a right to provide services or have freedom to work within the EU
.- Tax consequences: there may be tax implications of many types, for example: heirs who are not tax residents in the European Union, will not benefit from the tax benefits in the Spanish inheritance tax system.
We can help with these issues
In our opinion, due to the numerous links between the United Kingdom and the European Union, especially Spain, where most of the British expatriates reside, we are sure that mechanisms will be articulated through international negotiation and agreements with the European Union, so that expatriates can continue to enjoy their life in this country.
Therefore, we recommend for the moment not to make hasty decisions, since legally nothing has changed yet and brexit will take a long time, in addition we do not know the legal status that the United Kingdom and its citizens will have in the European Union.
The Prime Minister of Spain Mr Mariano Rajoy has released many statements emphasizing how important expatriates are to Spain and it's economy, and how he will ensure that the lives of Britons in Spain will not be disrupted. In any case, if you want to review your tax strategy or your situation, do not hesitate to contact us and we will help you.
The information provided in this article is not intended to be legal advice, but simply transmits information related to legal issues.