Sun setting on overseas retirement plans for Brits
TIME is running out for those Britons who dream of a relaxing retirement in a sunny EU country such as Spain, Portugal or Cyprus with full citizens’ rights.
The UK has until June 30 to ask the EU for an extension to the current Brexit transition period, but Prime Minister Boris Johnson has consistently ruled out a delay.
Once that deadline passes, the UK’s departure from the EU on December 31, 2020, is set in stone, even if the two sides have not agreed a trade deal.
Britons who want to become resident in the EU are being urged to act before the end of the year, to lock in a lifetime of citizens’ rights under the UK/EU Withdrawal Agreement.
Jason Porter, director of Blevins Franks Financial Management, who advises Britons retiring to France, Spain, Portugal, Cyprus and Malta, said the transition period means little has changed, but that will not last: “There are currently no protections for UK nationals arriving in the EU after 2020.”
From next year, the freedom to retire in the EU will depend on what deal the UK and EU can strike: “Both sides say they want to reach a mutually beneficial solution, but a no-deal Brexit remains a possibility and you need to be prepared.”
Porter reports a surge in interest for properties in Spain, France and Portugal, with online searches up a third on May last year.
Moving before the transition period ends could spare Britons a 25 per cent tax bill when transferring a UK pension into a Qualifying Recognised Overseas Pension Scheme, or QROPS, currently free for EU transfers.