Page 50 - Property Portfolio - March 2020

What can UK expatriates in

Spain expect from Brexit?

Beware that you forfeit these guaranteed rights
By Steven Langford, Partner, if you are absent from the country for five
Blevins Franks consecutive years. Also, there is no onward
freedom of movement, so if you want to move to
another EU state from 2021, you would have to
At last we have some clarity around Brexit. apply as a non-EU/EEA citizen.
While we still don’t know what the UK’s new
relationship with the EU will look like next year, Anyone arriving in Spain after 31 December
the transition period provides some certainty 2020 will be subject to the new residence
until 31 December 2020. requirements. While yet to be defined, these may
If you are living in Spain, what might change be much more stringent than today.
when it comes to residence, taxation and UK
pensions, and what steps can you take now to Taxation after the transition period
prepare? Each country sets their tax rules, not the EU,
and tax treatment depends on residence, not
Securing residence and existing benefits nationality. Similarly, the UK-Spain double tax
UK nationals who are lawfully settled in Spain treaty is independent of the EU. As such, Brexit
before the end of the transition period can lock itself has no effect on how Britons are taxed in
in a lifetime of citizens’ rights here under the Spain. However, some non-EU/EEA assets are
UK/EU Withdrawal Agreement. This protects currently treated differently, so those with UK
access to healthcare, social security, education assets and investments are more likely to see
and employment opportunities for as long as you increased taxation post-Brexit.
remain resident.
For example, if you sell a home in Spain to buy a
If you already hold residency papers – whether British property once the UK is outside the EU/
temporary or permanent residence – you will EEA, you may no longer be eligible for capital
need to convert these to the new documents. gains tax relief.
Although the Withdrawal Agreement allows
up to 30 June 2021 for this, register as soon as In any case, the way you structure your assets
possible to protect your position. and wealth can make a significant difference to

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