As you are aware, on March 30th 2019, the exit of the United Kingdom (UK) from the European Union (EU) will take place.
Although on November 14th 2018, an Withdrawal agreement between UK an EU was reached, ensuring that rights of UK citizens living and visiting EU countries were preserved, it seems unlikely that the UK Parliament will adhere to it.
Therefore, the advice we have been providing to clients during year 2018, which was based on the commitments of the Withdrawal Agreement as published on December 2017, will not be longer applicable, unless a Withdrawal Agreement is reached.
This newsletter will summarize the consequences that Brexit will have for UK citizens living or visiting Spain, in a no-deal scenario, with current Spanish Law.
Please note however, that the Spanish Government has announced that a new law will soon be enacted to clarify the situation of UK citizens in Spain. The Spanish government has committed himself to provide UK citizens with legal certainty about their situation as Spanish resident before Brexit takes place
Of course, it will also be possible that UK and Spain sign bilateral agreements that might possibly grant better conditions that the ones outlined in this email, that should be considered as a worst-case scenario.
We are just sending this information so that you can plan ahead, and take necessary action before March 29th, while EU Law is still applicable on those fields
Spanish Government is currently setting the lines on the new process for residence obtention or conversion of UK citizens. It has been announced that this process will guarantee:
This means that the current green residence cards or residence A4 papers that you hold will remain temporarily valid after March 29th, although British citizens will be required to exchange them for Non EU residence cards at some time in the future.
We strongly advice British citizens living in Spain, that do not hold a residence card or paper yet, to register as resident before Brexit at the Foreigner’s Police Station.
TOURISTS VISITING SPAIN WITH A UK PASSPORT
The rules for travel to most countries in Europe will change if the UK leaves the EU with no deal. After 29 March 2019:
DRIVING IN SPAIN
If you are a UK licence holder living in Spain you should exchange your UK driving licence for a Spanish driving licence before March 29th 2019. From that date, in the event that there is no EU Exit deal, you may have to pass an Spanish driving test to be able to carry on driving in Spain.
Residents in Spain should consider exchanging your UK driving licence for an Spanish driving licence as soon as possible. Increased demand may lead to longer processing times and delays to exchanging driving licences the closer it is to 29 March 2019.
UK Government has announced that you can drive on your EU licence when visiting the UK, and if you return to live in the UK, provided you passed your driving test in the UK , you can exchange your Spanish licence for a UK licence without taking another test.
LexTax can assist you in exchanging your UK driving licence for an Spanish one at a cost of 120 euros per person (VAT and traffic fees included), to which the cost of a medical certificate should be added.
The process to exchange your UK driving licence is:
1.- You need to pass a medical test. This is Spanish is called “Psicotécnico”. It is a special medical test which needs to be reported to the traffic administration.
The only medical center that does it in Javea, is Policlinica Cume, (Calle Salvador Salvá, 6, Bajo. Pasaje Avenida Amanecer, 37. 96 579 23 24)
They charge 65 euros, and they do it Monday afternoon 5pm until 8pm and Thursday afternoon 4:30 pm until 8:30 pm, it´s not necessary to book an appointment.
2.- You need to provide us with the following documents:
– Copy of your driving licence
– Copy of your passport
– Copy of your residency card or NIE
– Original medical test (psicotécnico)
– Passport size picture
– Notification address in Spain.
– Sign some forms to allow us to represent you. Those will be available at our office.
If you are a UK licence holder visiting Spain, in a no deal scenario, you will need a 1949 International Driving Permit to drive. You can get an IDP over the counter at the UK Post Office.
They cost £5.50 and you must be a GB or Northern Ireland resident, have a full UK driving licence and be 18 or over.
Currently, British citizens living or visiting Spain, enjoy the Spanish Health system, by transferring to Spain their UK Health rights. In this way, tourist showing their UK EHIC blue card, will be given emergency and basic assistance in Spanish public hospitals. Also, UK Pensioners or employees have access to full Spanish public assistance, through and S1 or E121 Form issued by the UK.
Under the withdrawal agreements, those that obtained an S1 Form before Brexit will continue profiting from that scheme.
However, in a no deal scenario, those rights are not guaranteed.
Spanish Government has announced that some contingency measures to provide health assistance to UK clients will be enacted. As soon as we have information on those, a newsletter will be sent.
Some options available at the moment for those UK citizens holding a EU citizen green residence card or A4 paper for more than a year is to sign a “Convenio Especial” with the Valencian Government. This will provide you with public health assistance paying a monthly fee, who is currently 60 euros per month for those younger than 65, and 157 euros per month for those older than 65.
UK citizens holding a EU citizen green residence card or A4 paper for more than five years, might under some circumstances apply for State Aid, under which you will get free health care in Spain.
LexTax can assist you in either applying for a “Convenio Especial” or for Health State Aid. This can be done after March 29th.
We advise you to consider options set up above, as well as private health insurance options, both for tourist and for residents.
Under Spanish taxation scheme, taxpayers who are resident in EU countries must be treated in the same way as Spanish tax residents. This means that in some taxable events, non-EU tax residents face a higher tax burden that EU tax residents.
UK tax residents, in a no deal scenario will face a non resident tax rate of 24%, instead of 19%. This will affect both income from rental of Spanish properties, as well as tax on owning a second home property in Spain.
Also, in some inheritances and gifts made, applicable Law may change from the Valencian Inheritance and Gift Law to the Spanish Inheritance and Gift Law, which usually trigger a higher tax burden.
For more information on the topics covered in this email, please refer to the following websites of both the UK and the Spanish government.
We hope you find this information useful. We will keep you updated on Brexit related issues affecting Spanish resident and visitors, as soon as new laws are enacted.
Our Phone +34 96 579 20 15
Our Phone +34 96 579 20 15
Carrer D’Avall, 31 -03730- Jávea (Alicante). España