There is a compelling need for clarity for expats. For example, before the UK entered the EU and subsequently become subject to EU free movement rules, allowing UK citizens to move freely between and reside in any EU country of choice, it was signatory to a number of deals with European countries that have now been superseded – for example, there was an agreement with France that ensured reciprocity over social security payments to expats. While some commentators have wondered whether such agreements might again become active in the event of Brexit – others feel that this is a case of wishful thinking.
Whatever the situation, UK lawmakers do have the power to positively influence the situation of expats and they should do so as soon as possible. For example, there is nothing to stop both sides of parliament from moving to trigger Article 50 and urging EU states to ensure reciprocity regarding the rights of expats. Doing so would put an end to the limbo currently being experienced by many and would quiet any troubling suggestions that expats might become political pawns in some of the more Machiavellian negotiations inherent in the Brexit process.
Such decisiveness would also give expats more confidence over what they might do with their pensions. Whereas some might currently be tempted to make an urgent QROPS transfer, if they could have guarantees regarding the future of their pensions they might be tempted to keep them in their existing schemes and perhaps make a decision at a later date.
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.
Time may be running out for British retirees to move to Portugal in order to take advantage of its valuable Non-Habitual Resident tax programme. Currently, talk abounds that the scheme will come to an end in 2018 and be replaced with a 10% net expat tax regime from the first day of the New Year. Luckily, for those who feel they may be tempted by a move to Portugal, any move before this cut-off date will ensure that they are able to enjoy the benefits of NHR status as they currently stand.