Understanding Brexit: Essential Guide for Expats in the UK and Europe

Beach culture and coastal activities vary by location, from water sports to seaside social conventions.

Navigating Life After Brexit

Britain's decision to leave the European Union has significant implications for anyone traveling between the UK and EU member states. It affects six million residents who are either UK nationals living in the EU or EU nationals living in the UK. Understanding these changes is essential for anyone planning to move, work, or travel between these regions. From visa requirements and healthcare access to financial considerations, this comprehensive guide explains what living in a post-Brexit world means for expats.

The Brexit Timeline and Agreements

On June 23, 2016, British citizens voted in a referendum on the UK's membership of the European Union. Nearly 52 percent of voters chose to leave, commonly known as 'Brexit' (British exit). The UK officially left the EU on January 1, 2021, following an 11-month transition period. From this point, the UK became a 'third country,' and free movement between the UK and the EU ended. Two key agreements now govern the relationship: the EU-UK Withdrawal Agreement came into effect on February 1, 2020, detailing the full terms of the UK's departure and covering areas such as rights of citizens already living abroad. The EU-UK Trade and Cooperation Agreement came into effect on January 1, 2021, detailing preferential arrangements in areas such as trade, social security, and law enforcement. Parallel agreements have also been reached with the European Free Trade Association states regarding both withdrawal and trade cooperation.

Rights for Expats Already Living Abroad

The EU-UK Withdrawal Agreement addressed the rights of EU nationals living in the UK and UK nationals living in the EU before January 1, 2021. Under the terms of this agreement, the rights of these citizens, numbering nearly six million, remained largely unchanged. Each country put in place its own particular arrangements, but in general, expats already living abroad before the end of 2020 could apply for either a new temporary residence permit (if living in the country for less than five years) or a permanent residence permit (if living in the country for over five years). Although the Withdrawal Agreement secured the rights of these expats and their family members, Brexit has caused much disruption. Studies of EU migrants living in the UK found that Brexit negatively affected two-thirds of participants' feelings about Britain, while similar studies of UK nationals in the EU uncovered negative impressions of Britain alongside fears about rights and entitlements.

Residence Permits and Settlement Schemes

EU Nationals in the UK

EU/EFTA nationals already living in the UK before January 1, 2021, could apply through the EU Settlement Scheme for either settled or pre-settled status. This ensures a continuation of the rights they enjoyed as expats prior to Brexit. The deadline for applying was June 30, 2021, although late applications are permitted if there are reasonable grounds for not applying earlier. This may apply if you are a family member of an EU/EFTA citizen who was living in the UK by December 31, 2020. Those living in the UK for less than five years when they made their application receive pre-settled status, while those living there for over five years receive settled status, equivalent to permanent residence in the UK. You can switch from pre-settled to settled status as soon as you have been living in the UK for five continuous years.

UK Nationals in the EU

Each EU country has implemented the Withdrawal Agreement to protect the rights of UK nationals already living there before January 1, 2021. This guarantees that UK expats in the EU retain broadly the same rights as they had as EU citizens before Brexit. Similar to the EU Settlement Scheme in the UK, most countries have implemented schemes where UK expats must apply for a new post-Brexit residence card. This is typically either a temporary card (for expats in the country for less than five years) or a permanent card (for those in the country for more than five years). Each country has set up its own scheme, so processes vary, and application deadlines differ across member states. Consult individual country government websites for specific information about Austria, Belgium, France, Germany, Luxembourg, Netherlands, Portugal, Spain, and Switzerland.

Visa Requirements and Freedom of Movement

EU Nationals Traveling to the UK

EU/EFTA expats post-Brexit can travel visa-free to the UK for up to six months, although they can only take up work or study lasting six months or less. For stays of longer than six months, they must apply for the relevant visa. Work visas are available for skilled work or business investment, though the UK now has a points-based immigration system. EU nationals must score sufficient points to qualify for a visa, the same as non-EU nationals. Student visas are available for university study and higher education, plus child student visas for children aged 4-17. Family visas are available for those wanting to live with spouses, partners, children, or other relatives already in the UK.

UK Nationals Traveling to the EU

UK nationals do not require a visa for short-stay visits of up to three months in EU/EFTA countries. However, rules vary regarding short-term work contracts or placements lasting less than three months, so check specific country requirements. For stays longer than three months in most EU/EFTA states post-Brexit, UK expats must apply for a visa and/or residence permit. The process varies across countries, and visa availability is variable. Some countries have work quotas for third-country nationals. Work visas include skilled worker visas, business startup visas, and company transfer visas; typically you need a job offer before applying. Student visas are available for degree, postgraduate courses, and language classes. Family visas allow you to live with spouses, partners, minor children, or parents. UK nationals can travel around the Schengen Area but are restricted to a maximum of 90 days within any 180-day period without a visa.

Healthcare Access After Brexit

EU Nationals in the UK

The UK has a residence-based National Health Service which delivers public healthcare to all UK residents. Since Brexit, expats coming from EU/EFTA countries for longer than six months usually must pay the immigration health surcharge to cover the duration of their visa. For short-stay visits of less than six months, EU/EFTA visitors can still use a valid European Health Insurance Card to cover medically necessary treatment. EU/EFTA nationals without an EHIC or health surcharge coverage will be charged for NHS services unless they have taken out suitable health insurance coverage, potentially as much as 150 percent of standard costs. Certain citizens from the EU or Switzerland can get reimbursed for healthcare treatment if their government covers the costs, such as those receiving a state pension. These individuals can fill in S1 forms for general health treatment or S2 forms for pre-planned medical treatment. EU/EFTA citizens can get COVID-19 vaccinations in the UK free of charge.

UK Nationals in the EU

UK nationals traveling to EU/EFTA countries for short visits can use their EHIC for necessary treatment if still valid. If your EHIC has expired, you can apply for the new UK Global Health Insurance Card, which operates similarly. However, the GHIC and EHIC are not valid in Iceland, Liechtenstein, and Norway, so you must take out health insurance for all medical treatment on short visits. If you're moving from the UK to an EU/EFTA country as an expat since Brexit, your access to the country's public healthcare depends on individual country policies. Typically, you must take out a health insurance policy as part of your visa application. You'll then usually have access to state-funded healthcare through health insurance or social security contributions if you work. Though the UK is no longer part of the EU, certain UK residents receiving UK pensions or other social security benefits can still use S1 forms to access state healthcare in the EU or Switzerland reimbursed by the UK government. Some pre-planned treatments can be accessed through S2 forms, though the situation differs in Iceland, Liechtenstein, and Norway if you moved before January 1, 2021.

Financial Implications of Brexit

Pensions and Social Security

Before Brexit, pensions and social security entitlements were automatically transferred between the UK and EU/EFTA nations. Although this has now ended, the Trade and Cooperation Agreement makes arrangements for continued social security cooperation. This provides for post-Brexit coordination in pensions and contributory benefits affecting expats who don't benefit under the Withdrawal Agreement. Under current post-Brexit measures, expats moving between the UK and EU/EFTA after January 1, 2021, can count contributions from overseas employment towards their state pension entitlements until at least 2035. If you have a private pension, it should remain unaffected if you move overseas, though there may be increased fees if you wish to transfer to a pension plan in your new home country. UK nationals moving to the EU/EFTA can receive their workplace or personal pensions and can also consider transferring them to a Qualifying Recognized Overseas Pension Scheme in most EU countries. The Trade and Cooperation Agreement also entitles UK and EU/Swiss nationals to receive maternity/paternity benefits, sickness benefits, disability and injury benefits, survivors' benefits, and unemployment benefits based on contributions made in either location. Non-contributory benefits such as family benefits and long-term care are not included.

Banking and Financial Services

Although much has remained the same in personal financial services, there are likely changes for expats in terms of accessing services, consumer rights, increased costs, and longer delays. One major change is the end of passporting rights, which was essentially the right of UK financial service companies to operate in the EU/EFTA without additional authorization, and vice versa. Banks and other financial providers now need authorization from national regulators, affecting some service provisions and consumer protection. Each bank and financial institution has its own response to Brexit. Impacts may include some banks restricting access to accounts for overseas residents, increased fees for services such as cashpoint withdrawals or card payments, limitations to insurance product coverage, and changes to complaints procedures.

Money Transfers

The UK continues to participate in the Single Euro Payments Area, meaning electronic payments in euros can still be made between the UK and EU/EFTA. However, providers must submit additional information, causing potential delays. Some money transfer services may take longer, and some have increased fees to send funds between the UK and EU/EFTA. Check providers such as CurrencyFair or Wise for the best current rates.

Property and Mortgages

It is still possible to buy property and get a mortgage as a UK national in the EU/EFTA, or as an EU/EFTA expat in the UK post-Brexit. However, paperwork and costs have increased. The process is now likely to take longer, especially with mortgages, as there are typically more legal formalities and additional credit checks for third-country nationals. This makes legal costs more expensive. It can be more difficult to get a mortgage as a third-country national, with lenders typically asking for a bigger deposit, though this may improve after you've lived in the country for a long period. Overseas owners of holiday homes need a visa if they want to reside in the home for longer than three months (or six months in the UK). Holiday home laws vary across EU/EFTA countries, so check for restrictions.

Shipping Goods Across the Channel

The UK has left the EU Customs Union. Customs changes came into effect on January 1, 2022, meaning goods traveling between the UK and the EU are subject to customs declarations. Goods are checked at border controls and cannot be released without valid declarations and clearance. Senders must fill in required customs paperwork and pay necessary fees including VAT and customs charges. Recipients may also have to pay import fees. This has increased costs and caused lengthy delays in sending and receiving goods, affecting both individuals and businesses. Personal belongings being moved are also subject to customs controls and fees, though you can claim residence relief if moving home. This relief doesn't apply to items such as cars and antiques.