brexit

Brexit News Today

Brexit News Today

Brexit negotiations are set to start following the British Prime Minister Theresa May’s letter to the EU triggering the now (in)famous Article 50 late last month. The multi-billion-pound questions are “how will this affect the UK’s economy, share prices, the value of the pound and your or your client’s business in the near (and far) future”?

Theresa May is on record stating that the intention is for the UK to leave the EU’s single market. The terms “Hard Brexit” and “Soft Brexit” are being used to describe the potential outcomes of the negotiations that will now take place.

A “Hard Brexit could involve no agreement on free movement of people between the EU and the UK, whilst a “Soft Brexit” may mean the UK getting a deal similar to that of Norway where access to the single market is gained for acceptance of free movement of people between the EU and the UK.

Theresa May has said that leaving the EU with no deal (ie Hard Brexit) would be better than signing the UK up to a bad deal. Without any agreement on trade, the UK would need to rely on the World Trade Organisation rules, which could mean customs checks and tariffs.

UK businesses having business relationships with customers in the EU are currently looking at all options to be able to continue such relationships post-Brexit. At the same time, UK citizens living in or owning property in the EU are also looking at their options.

Malta is a member of the EU and can offer a variety of solutions for UK businesses who need or want an establishment in the EU, whether as a main business route or as a secondary option.

Setting up a company in Malta and conducting EU business through a Maltese company could go some way to future-proof existing or new UK business in a post-Brexit scenario.

So, whether you have or are starting a trading or service business (online or otherwise), it may benefit you to enquire about Malta and our cost competitive, regulatory robust and tax efficient solutions.

For more information about the above and any other solution Malta may offer, please have a look at e-Commerce companies in Malta; the benefits of setting up a company in Malta; or send us an email at info@papilioservices.com with regards to a private tax advisory services.

Brexit Infographic

Brexit Infographic

What will happen to EU nationals living in the UK?

There is no firm statement by the UK government about the future status of EU nationals currently living in the UK. The UK government has stated that it is not possible to give any such guarantees without a reciprocal pledge from the EU Member States about the UK nationals living in the EU.

EU nationals with a right to permanent residence, which is granted after they have lived in the UK for five years, should be able to remain in the UK.

What will happen to UK nationals living in the EU?

UK nationals living across Europe are naturally concerned about what might happen to their rights following Brexit vote, including their rights regarding freedom of movement, residency and other personal affairs.

Again, this very much depends on the deal being negotiated between the EU and the UK. We expect a deal to depend on reciprocity, ie that any rights of EU nationals to live in the UK will be similar to the rights of UK nationals to live in the EU.

Will UK nationals need a visa to travel in the EU?

Although there may be some restrictions for UK nationals to live and work in the EU, it seems very unlikely that there will be restrictions for UK nationals to travel in the EU.

What seems more likely is that a deal similar to what many countries outside the European Economic Area has, whereby their nationals can visit the EU for up to 90 days without a visa will be agreed. However, we would expect that any deal would depend on reciprocity, ie that the same rights are given to EU nationals wanting to travel to the UK.

Nobody knows the outcome of the EU-UK negotiations at this stage. However, what is certain is that issues such as business, immigration, security, defence, health, education, science, the environment, farming and fishing represent some difficult talks ahead. We will naturally follow developments with interest and expect to write about developments as and when negotiations take place.

In the meantime, should you want any information about Malta’s residence options and programmes such as the Residence Programme, the Global Residence Programme, the Malta Retirement Programme and the Malta Residence and Visa Programme, please do not hesitate to contact us on info@papilioservices.com.

Papilio Services Limited is registered with the Malta Financial Services Authority as a company service provider, with the Inland Revenue Department as an Authorised Mandatary and with Identity Malta as an Accredited Person.