UK Residency by Investment post Brexit

June 28th, 2016   •   Comments Off on UK Residency by Investment post Brexit   

UK votes to leave the EUBrexit Vote

On the 23 June 2016 the UK electorate voted to leave the EU. So how does this affect immigration investment programmes in Europe that can lead to residency in the United Kingdom?

Current Situation

European Union citizens are free to travel, work and live in any other EU country. This means for countries such as Cyprus and Malta who issue citizenship and second passports through investment, that any investor in these programmes who gains a passport of that country, is free to live anywhere in the EU, including the UK.

Situation Post Brexit

It is important to understand at this point that the UK has not left the EU. The UK population has voted 52% to 48% to leave. But the referendum result is not legally binding and it is now down to the UK Prime Minister to invoke Article 50 of the European Union. Once invoked this starts a two year process for the UK to leave the European Union. David Cameron the current UK Prime Minister has gracefully passed this task on to his successor, whoever that may be.

The degree of Euro sceptism among potential candidates for Prime Minister varies with talk of potentially re-negotiating Britain’s position within the EU or maintaining many of the benefits and restraints within a new deal. Writing this just a few days after the referendum there seem to be many ways this could now play out, and varying timescales as to when it will eventually be resolved.

But let’s for the moment assume that the UK does invoke Article 50 and the UK leaves the EU.

Free Movement

One of the key principles of the European Union is the free movement of people. And that is the key question that concerns us when it comes to residency or citizenship by investment in any of the other EU countries. All EU members have to abide by this. In addition other countries gaining access to the single market such as Norway are also required to comply.

Until Article 50 is invoked and for the two year period afterwards then the UK remains part of the EU. This means that for the next two years, nothing will change. Any EU citizen can live in the UK or anywhere else in the EU.

Post EU Exit

For those EU nationals already living in the UK at the time of the UK leaving the EU (2018 possibly 2019) we suspect the chances of being allowed to remain are very high.

There are 3 million EU nationals living in the UK currently and 1 million UK nationals living elsewhere in the European Union. We expect an undignified 3 for 1 swap across the English Channel is unlikely. We also believe that there will be no distinction between those who entered post referendum or even post Article 50.

The reason being that such residents entered the UK completely legally under rules and laws at the time. Not only would it be difficult for a government to send back or “deport” such residents we expect it would not be in the government’s interests to enter into any political row with it’s European neighbours.

UK Residency

Our advice to anyone seeking UK residency through investment in the EU is to act now. Gaining residency in the UK directly through investment under the Tier 1 programme is virtually impossible in the current climate. Residency through a EU passport, as explained above, is the only viable option and one that is likely to remain an option for the next two years. The only countries through which an EU passport can be gained by investment within this timescale are Malta and Cyprus.

The earlier such investment is made, the earlier UK residency can be undertaken and the more likely it is that such residency will not be affected upon the UK leaving the EU.

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