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Are you BREXIT-PROOF?

brexitLenAs I write this, at the beginning of September, to use Michel Barnier’s words, ‘the clock is ticking’, and there’s not much time left to negotiate the 20% of the Withdrawal Agreement that has yet to be agreed, writes Sue Fletcher.

If there is no agreement in place by March 29th 2019 – just seven months from now, then the UK will fall out of the EU. This will mean that all treaties with the EU will immediately cease; there will be no transition period to the end of 2019; there will be no agreement on citizen’s rights and we will be on our own.

So we should be asking - ‘am I Brexit-proof?’

Suddenly, No-Deal Brexit preparedness notices are springing up everywhere. The EU published this one a few months ago:

https://ec.europa.eu/info/brexit/brexit-preparedness/preparedness-notices_en

The UK is publishing its notices in batches over the autumn. The first tranche are available here:

https://www.gov.uk/government/collections/how-to-prepare-if-the-uk-leaves-the-eu-with-no-deal

If there is no Withdrawal Agreement by March 29th these notices give information on how just about every aspect of life will be affected.

Until Brexit day, Brits living in the EU27 are likely to be more affected than Brits living in the UK because we have to organise our lives very quickly.

Every one of us has our own set of circumstances and we all really need to read through the preparedness notices, determine those that apply to us, then think about how we can limit their effect.

Warning: they are a bit tedious but most don’t apply directly to us, so read through the list and extract those that do apply. Unfortunately we won’t have the full set of notices from the UK government until later in the autumn, which leaves us even less time to get our lives in order.

Below are some areas that will probably apply to us all.

RESIDENCY

In the Draft Withdrawal Agreement the UK and the EU27 committed to maintain existing residency rights for Britons and EU nationals ‘lawfully residing’ within either area. ‘Lawfully residing’ in Portugal is to have a residency permit.

As an EU citizen, this should be relatively straightforward. If you have lived in Portugal for 90 days you should apply for the five-year temporary residency, from your local Camâra. If you have had temporary residency for five years or the five years have expired, you need to consider applying for permanent residency from the Serviço de Estrangeiros e Fronteiras (SEF).

The SEF in my area (Beja) is making appointments around five months ahead, so don’t leave your decision for too long or you could find yourself a third country national before you get to your appointment.

For more details see:

https://www.algarvedailynews.com/legal/11341-are-you-legal-in-portugal-rules-on-residency-for-citizens-of-the-eu-eea-and-switzerland#comment-17022

If you have held permanent residency for over six years, you could consider opting for nationality. For details see:

https://www.algarvedailynews.com/brexit/13885-becoming-a-portuguese-citizen-update

Without a residency permit you will be treated as a third-country tourist, which means that you will require a visa to enter the Schengen area and you will only be permitted to stay in Schengen for 90 days in any 180 days.

Schengen extends from Iceland to Greece inclusive, so once your 90 days have expired you will have little option but to return to the UK or Ireland, which are not in Schengen. Visas will be one of the many thousands of topics that will need to be negotiated after Brexit day, so in the short-term, assume a visa will be required.

For greater detail see:

https://www.algarvedailynews.com/brexit/13957-holiday-home-brits-face-brexit-shambles

PASSPORTS

If you’re a British citizen, as an EU national, you’re currently able to enter the Schengen area if you have a valid passport and currently there’s no requirement for British passports to have a minimum or maximum validity period remaining when you enter or leave the Schengen area. Portugal is in the Schengen area.

If there’s no deal, after 29 March 2019, you’ll be considered a third country national under the Schengen Border Code and will therefore need to comply with different rules to enter and travel around the Schengen area. If you have Portuguese residency this will apply to you when outside of either the UK or Portugal.

According to the Schengen Border Code, third country passports must:

have been issued within the last 10 years on the date of arrival in a Schengen country, and
have at least 3 months’ validity remaining on the date of intended departure date from the Schengen area. In effect this means having 6-months validity left on your passport.

Although UK passports can be issued nine months before expiry, since 10th September this year, those extra months will no longer be taken into account.

Therefore, for existing passports you need to check the issue date, add ten years and use this date as the expiry date. To travel into Schengen means your passport should be no older than 9 years and 6 months.

If your passport does not meet these criteria, you may be denied entry to any of the Schengen area countries, and you should renew your passport before you travel.

If you apply for temporary residency the time left on your passport is taken into account, so if you only have two years left then your residency will only be for two years. As yet, we have no idea from the Portuguese government what they intend to do regarding the process of residency, although an immigration specialist lawyer considers that those already in the system will be able to continue under the same system.

Suggested action: If there is less than 9-months validity, left on your passport, counted from the issue date, then renew it before applying for residency.

DRIVING
Most of us rely on our cars. The UK driving license is currently accepted within the EU without question but after Brexit a UK license will not be recognised, so you have two options. The first is to swap to a Portuguese license, which is currently very easy and costs €30. It is also a legal requirement once you have lived here for longer than 185 days. If you delay swapping until after Brexit you risk having to pass a driving test in Portuguese. UK licence holders who do this, will be able to re-exchange for a UK licence if they return to live in the UK.

If you aren’t a resident and travel to and from the UK, or hire a car in Portugal, you will need to apply for an International Driving Permit (IDP) which is a document you carry with your driving licence. Unfortunately, this is not as straightforward as it sounds because there are different types of IDP and each is valid for a different period. Which one you need depends on which country you are driving in and each is governed by a separate United Nations convention.

The 1949 convention IDP lasts for 12 months. After 28 March 2019 in the EU, a UK issued 1949 IDP would be recognised in Ireland, Spain, Malta and Cyprus.

The 1968 convention IDP is valid for 3 years, or for however long your driving licence is valid, if that date is earlier. After 28 March 2019, a UK issued 1968 convention IDP would be recognised in all other EU countries, plus Norway and Switzerland, including Portugal. For those of you that drive across into Spain you will require both IDPs.

Currently, a UK issued IDP for Portugal isn’t available but from 1 February 2019, the government will begin providing both forms of IDP at 2,500 Post Offices across the UK. At the moment, applying for an IDP takes around 5 minutes on a turn-up-and-go basis. However, be aware that the UK only usually processes around 100,000 applications a year but after Brexit this could leap to over 5 million and there is not the staff in place to cope with this volume.

Suggested action: Put 1st February in your diary and get your IDP early and avoid the inevitable delay.

If you are living here permanently and are still driving a UK registered car, think about either buying a Portuguese registered car or matriculate the car you have, provided it is younger than July 2007. Portugal has taken this decision to achieve its climate change targets as older cars are more polluting.

https://www.algarvedailynews.com/brexit/14028-driving-into-brexit

 

PETS

If you travel to and from the UK regularly with your pet and it has a UK pet passport, it might be worth considering talking to your Portuguese vet to see if you can get a Portuguese pet passport for it, effectively giving the animal dual nationality. It will have to be chipped and vaccinated but it might save a lot of future hassle. The UK has said that the old quarantine system won’t return, but as the pet passport is essentially an EU initiative, in theory the UK will drop out of the system after Brexit.

Suggested action: discuss with your local vet.

WILLS & POAs

Under the EU regulation that has been in force since 17 August 2015 (‘Brussels IV’), that allows an individual to use the succession laws of his country of nationality to apply on his death, many Brits rely on their UK Will. This is another area that’s unclear at Brexit, so check out the validity of the Will you currently have and any Powers of Attorney.

From personal experience, a POA is as important, if not more important, than a Will because if a member of your family becomes mentally incapable and needs, say, nursing home care, you need to be able to access their bank account to pay for it, and maybe sell the home or other possessions. Without a POA, you will not be able to do any of those things and then life gets very complicated and potentially financially catastrophic.

Action: take legal advice.

TAXATION

Each country sets their own tax rules and how they use them depends on whether you are a resident, not your nationality. Brexit may cause some current rules to be applied differently as you move from being an EU citizen to being a third country citizen.

For example, if you sell a Portuguese home to reinvest in a new home back in the UK, you currently qualify for capital gains tax relief. Once the UK is a third country, the sale could attract capital gains taxes.

Another issue comes from the UK government as it loses its EU commitments and gains more freedom to tax UK nationals living in Europe - pensions could be a target.

Another change could be tax relief rules for expats. For example, the government has threatened to remove the personal income tax allowance from non-resident British nationals, which could prove be a relatively easy way for the Treasury to raise revenue in the future.

With only seven months of certainty left, it might be a wise move to talk to a financial expert in this field.

As a Brit after Brexit, with a holiday home but no residency certificate, by law it is necessary to hire, a ‘Fiscal Representative’ to take charge of paying all taxes due in your absence. There are changes in the pipeline that aim at electronic reporting, but as yet, they are not in force. As with all things Brexit, it is difficult to be more specific at this stage, but if you renew your residency then this won’t be applicable to you.

IMPORTING GOODS FROM THE UK

Do you routinely buy things from the UK? Currently, it’s easy and cheap but after Brexit, particularly on third country status WTO rules and no EU custom’s union, things are set to get very much more expensive. It might be worth thinking about everything you buy from the UK and if it keeps, and you have the money, do a bit of stockpiling of your own. It will probably be a better investment than money in the bank.

Below is a link to the Irish customs website, which gives a very clear explanation of the costs involved for a variety of scenarios when buying from a third-country. Bear in mind that many companies will charge a VAT-inclusive price online and will not bother or have the means to deduct the VAT, so you are likely to end up paying VAT twice.

https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/buying-of-goods-online-for-personal-use/buying-goods-from-outside-the-eu.aspx

Suggested action: stockpile, just like the UK government allegedly is doing.

PENSIONS and INSURANCES

The current situation with negotiations is that state pensions will continue as they are and can be paid into an EU bank account but any insurance-based pension (e.g. an annuity) or occupational pension is a potential problem due to ‘passporting rights’. This also applies to any UK insurance you might have – health, life, car etc. No payments will be able to be made directly into EU bank accounts without these Passporting Rights.

Suggested action: check with your insurance company or pension provider and ask how they intend solving any issues.

UK BANK ACCOUNTS

UK bank accounts will not be accessible directly from the EU for the same reason as above, i.e. passporting rights.

Suggested action: contact your UK bank for a solution.

A warning though; if you live in the EU27 permanently and cannot supply a UK residential address, you may be asked to close your UK bank account. Using cashpoint cards here to withdraw money from the UK is not likely to be an option for the same reason, as the bank on this side of the Channel will not be able to get the money from the bank in the UK. Using debit and credit cards to purchase goods is likely to become more expensive and if your permanent address is in one of the EU27 countries, the card may be withdrawn. Barclaycard already has withdrawn its cards from anyone living permanently in Portugal, but it claims this is not due to Brexit.

QUALIFICATIONS

If you rely on your UK qualifications to work, it is worth checking that you will be able to continue after Brexit. The EU Preparedness notice on this indicates that qualifications in use up to the point of Brexit will continue to be recognised.

Suggested action: register your qualifications and keep any written evidence that can be used as proof in the future that you were indeed using the qualification here before Brexit.

HEALTHCARE

Once you have your temporary residency you can register with the Portuguese health service (SNS) and get a Cartão de Utente and with this you will be treated as if you were Portuguese. If you are a UK state pensioner you should have an S1 form registered with social security. This entitles you to be treated on the local SNS at the expense of the UK NHS.

This S1 scheme may or may not survive Brexit, but as it’s free it makes no sense not to be part of it. If you don’t already have an S1 form then contact the UK’s overseas pension service to request one. You will receive two identical copies which you need to take to your local social security office. They will retain both and about a week later you’ll receive confirmation in the post. Retain this for use should you need to use the local SNS.

The above is by no means exhaustive and the situation is currently very fluid. However, it makes sense to sort out what you can while you can and while it is easy. If there is a Withdrawal Agreement and we do have a 19 month transition period, everything should become more manageable, but it might still be worth asking the questions.

I very recently asked the following question of the British Embassy:

One thing we all really need to know re Brexit is, in the event of no agreement on the Withdrawal Agreement, when will the Portuguese government consider us as third country nationals, particularly for obtaining permanent residency - on March 30th? Also, will those with Temporary Residency be allowed to carry onto Permanent Residency as EU citizens rather than third country nationals who must pass the language test?

Here is the reply:

Regarding the questions you put in your last email, what we can say right now is that the Embassy is in discussion with the Portuguese Government about the implementation of the Citizens’ Rights deal, and any planning for a ‘no deal’ scenario. The Portuguese Government have made it clear, at highest level, that they value the British community.

We will ensure all relevant information is available to UK nationals in Portugal in the most transparent and accessible way possible, as soon as we are able.

You will have seen that the UK government published a first batch of technical notices last Thursday, aimed at providing information to businesses and citizens in the event of an unlikely ‘no deal’ scenario.  However, let me assure you that the publication of these notices does not mean the possibility of a no deal scenario is any more likely.  In fact, given the progress made in negotiations to date, the UK government is confident it will secure a deal with the EU.  But it is important that, as a responsible government, they should prepare for all possible outcomes.

I recognise this remains an uncertain time, and everyone is anxious for as much information as possible, so we will continue to post updates on our Facebook pages, and I am sure you already know that you can sign up to receive automatic updates from GOV.UK  here.

 

_________

As a thousand heads are better than one, if any reader has found a Brexit related problem and maybe even a solution, please email the author, Sue Fletcher at

brexit@algarvedailynews.com

to share your experiences and, with your permission, include them in this article.

Comments  

0 #11 SueF 2018-09-16 08:12
Worrying times: You were fortunate to have a vote, (many of us did not) but that aside, it's what the British public voted for and we each have to do our best to mitigate the effect it will have on us. Our residence status may change, which is why it's essential to do everything possible before March 29th 2019. Never was an Irish Granny more useful! Good luck.
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0 #10 worying times 2018-09-15 16:44
It all went pare shaped when the vote came in. I voted to stay but 12 months after the vote I was quite disgusted at both sides Barnier ,Junker & the like vs the UK. They made this into a battle a divorce that has got the UKs back up. The EU will block usage of Galileo even though the UK has paid in the most. The UK will not get any assets back which it owns in the EU. The UK will have to wait for decades for its large share of the European bank. The EU thinks it can slap a charge on visiting UK residents in the future but the UK tourists will go to other destinations. The UK will eventually take the EU to international courts were the divorce will get even worse as the UK will renege on the commitments already agreed to which will give the green light for Scotland to leave the UK and not pay any debts back to the remaining British Isles. All UK owners of property in Portugal will ever abandon or pay the exuberant taxes Portugal will apply to them, as I am one. UK owners will scramble for the family trees to see if they can become Irish. & the markets will see the biggest crash since the great depression. May, Barnier, Junker & the rest need their heads banging together in a locked room & told they are not to come out until they resolve this mess. Otherwise look forward to more TRUMP PUTIN & BORIS JOHNSON ............ EEEK.
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0 #9 Charly 2018-09-12 14:37
Today's latest news (wednesday 12/8) : members of Theresa May's party "think of destitution or impeachment" of May. They start the procedure the moment "they find a suitable replacement candidate for May". The nearer it comes to the deadline the bigger the panic becomes ! Let's wait for tomorrows syndicat meetings in the UK...
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+1 #8 Charly 2018-09-09 08:38
shocking news in the Belgian newspapers this morning (sunday 9/9) : if the governement implements the YELLOWHAMMER strategy it will be necessary to bring the british army (in conjunction with the police) into the streets because the govt forsees troubles and chaos....
And my question is: did May "forget" to make a workable plan and strategy or had May - from the very beginning - a second agenda, namely "ignore the EU and do it her traditional English and arrogant way" ?
2019 might become one of the darkest years in the British history of all times and all this for what ? Maybe the people has to ask it again to the instigators of this drama: Farage + Johnson + Cameron. By the way: where are they now ????
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+1 #7 Charly 2018-09-06 19:34
Hello folks,
are you aware of the existance of "the YELLOWHAMMER strategy" that had been "accidentely and inadvertently (sic!) leaked" today (sep 6) by a British minister ?
It's clear May is NOT focussing on a clear and decent and workable brexit" but on "an obscure strategy obscure that will probably lead to misery, chaos and drama". And that's not nice, isn't it ?
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+2 #6 SueF 2018-09-04 16:05
Re Jimbo: It sounds like the correct piece of paper. You will have got it from your local Camâra and it will have been signed by the President of the Camâra. I took a photocopy of mine and kept it with my passport, which one must carry at all times, although having a copy in the car is probably sufficient.
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+2 #5 Jimbo 2018-09-04 15:06
Talking about resident permits/licences, I have a very grand, large document decorated with EU stars saying "Certificado do Registo de Cidadão da União Europeia". Is that what we are talking about? I keep one in the car, and one at home, but am I expected to have it about my person at all times?
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+2 #4 SueF 2018-09-04 08:04
Re: NormanC.
Thank you for adding the extra info about the driving license. This article is about post-Brexit when our licenses will be no longer recognised, so registering with IMT can't be an option. Switching to a Portuguese license is the only option for those here permanently. Third country nationals, whose home country has no agreement with Portugal for accepting driving licenses are required to take the Portuguese driving test.

Regarding health. This paper is useful background reading as it explains what the EHIC and S1 schemes offer.

https://publications.parliament.uk/pa/ld201719/ldselect/ldeucom/107/107.pdf

The EHIC card is for short-term travellers only, whereas the S1 scheme is for permanent residents and it is classed as an 'exportable benefit' under EU Regulation 883/2004. Given that both are EU initiatives it's likely that the EHIC will definitely go as travel insurance will provide the necessary cover, but the S1 may survive as those of us who have moved to an EU27 country are a known number that is decreasing all the time, unless there is an agreement to offer it to new expats in the future. It is also the most cost-effective way to pay for UK pensioner healthcare and in return, EU27 citizens will be able to use the UK NHS under the 'Settled Status' scheme. Of course nothing is agreed until everything is agreed, but the S1 form could provide protection if the Portuguese SNS rules change and it costs nothing to have one.

I hope this helps.
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+2 #3 NormanC. 2018-09-03 21:36
I normally avoid making comments - too easy to make a mistake and get shot down.
However I think Ian has miss-stated a couple of things, I believe the following to be correct re the driving licence and the 'S1'.
1. Foriegn driving licence registration is required at the IMTT once you become a 'resident' as Ian stated. However this registration is only valid until you need to renew/replace any one of your Residencia, Passport or foriegn licence. At that point it is required that you switch to a Portuguese licence. Confirmation by anyone would be welcome!
2. The 'S1' is not a permanent document, it is only one step in obtaining an EHIC card. Whether you need this depends on whether you have a state pension. Once you have a state pension from your home country (UK) that country is liable for your health care anywhere in the EU (PRE-BREXIT!). The EHIC is what you carry when travelling outside Portugal or your home country (eg in Spain), once you have this card you can forget the S1. Prior to your state pension you are covered by the Portuguese health service (assuming you have done all the required paperwork) and if travelling in the EU should always carry a Portuguese EHIC. It would be most helpful to know whether the EHIC card system will still work after Brexit - as far as I can find out it has not even been discussed yet.
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+3 #2 SueF 2018-09-02 16:21
Ref: Ian Ladds:
This article is dealing with life post-Brexit, which is, as you say, relatively unknown, except that there are rules already in place for third country nationals, which is what we will become. Currently you can simply register your EU driving licence with IMT but as UK driving licenses won't be recognised after Brexit, which could be March 30th next year, it makes more sense for permanent residents to simply swap their licenses to Portuguese whilst it is easy. There is the possibility that swapping after Brexit, when a UK licence is not recognised, may involve doing a Portuguese driving test, in Portuguese. On your second point, Portuguese law demands that EU citizens here for longer than 90 days must register at their local Camâra in order to get their temporary residency certificate. See: https://www.sef.pt/en/Documents/Lei_37_2006_Versao_EN.pdf
This won't be an option after Brexit, which is what the article is targeted at. Assuming there will be a withdrawal agreement, those that are resident on Brexit day will retain their EU rights within Portugal, those that are not will be treated as third country nationals, so it makes sense to get temporary residency as soon as possible. The S1 isn't required at the moment but after Brexit, who knows? It costs nothing and could be a sensible insurance as I say in the article.
I hope this explains your comments.
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