BREXPATS IN SPAIN: What Brexit will mean?

A very interesting article has been published on the Bloomberg Tax web site written by Leon Fernando del Canto. Full article here (INSIGHT: The Brexit Prophecy and “Brexpats” in Spain).

In summary though del Canto concludes as follows:

1. Britain is leaving the EU, but will always be part of Europe’s neighborhood.
2. Business with Europe will continue as will tourism.
3. Most noticeable change will be the elimination of the Four freedoms: Goods, people, services and capital. This means the UK will be treated as a third country.
4. From a legal point of view mostly affected areas will be, data protection, cross border litigation, mergers and acquisitions, corporate finance, family law, and intellectual property.
5. The legal status of British expats will remain the same until end 2020. There after will depend on agreements reached between EU and UK.
6. With 500000 Britons owning property in Spain arrangements are being made between the two governments and the EU to ensure rights are not affected.
7. British Expats may become British immigrants and have to apply for long term visas. It is anticipated but not certain that Brexpats will be treated without discrimination.
8. Very little change in taxation is anticipated both for residents and businesses. Double tax treaty between Spain and UK will remain.
9. Nonresident tax (IRNR), wealth tax and inheritance tax obligations should be reconsidered, and professional advice should be sought.
10. Changes will be applied to immigration, customs, consumer law, as well as all above. The full effect of the changes remains to be seen.

This summary does not necessarily reflect the opinion of Leon Fernando Del Canto or of The Bureau of National Affairs, Inc. or its owners.