One financial advisor with an interest in expat wealth management told British press, “A fundamental EU rule is you should only pay social security contributions in one country. If you are UK tax resident, but work for an employer in mainland Europe, you will normally pay social security contributions in that country instead of UK National Insurance. Without renegotiation, Brexit could result in dispute between nations as to where the social security liability lies, or worse, a liability in both nations,”
It is not just expat wealth management and healthcare that form the chief concerns of British expats in Europe; there are also worries about the cultural and lifestyle impact that any proposed Brexit might have.
And expats are not alone in feeling concerned about the impact of leaving the EU. Last week the pound took a dramatic nosedive in its value against the Euro, with most saying the fall came as a result of Boris Johnson, Mayor of London, voicing his strong backing of the “Yes to Brexit” vote.
To compound worries, long-term expats may not be able to have their say in the vote as there is a fifteen year rule in place under which UK expats who have lived outside the EU for fifteen years or more are not allowed to participate in a referendum. However, those in this position are not without power. They can still make their views known among family and friends and by sharing them over social media.
If you are concerned about how Brexit could affect you, or your loved ones living abroad, contact Blacktower to discuss the ramifications of a “Yes” vote on expat wealth management.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Last year the Association of British Insurers (ABI) provoked something of a panic among British expats in Europe. Those who in some way rely on insurance products, such as annuities and life insurance, for the payment of income and expat pensions were understandably alarmed when Huw Evans of the ABI said that a no-deal Brexit could leave insurance contracts in legal limbo because of a risk that payments could not be fulfilled for contracts written pre-brexit. (
As Brexit negotiations continue, the freedom of movement that expats in Europe will be entitled to is still unclear.