When British Parliament decided to start the Brexit procedure, British expats naturally became concerned over the future of their businesses located in Spain. Time will tell what the outcome will be. Here’s what we know so far.
Brits remain one of the most significant communities of foreign residents in Spain. A total of 319.000 expats currently resides in the country with the largest group of Brits on the Costa del Sol (more than 12.000). Many of them are entrepreneurs, which explains the concern about the upcoming changes to their legal status. According to Express.co.uk, many Brits are even considering changing their nationality in order to continue living in Spain. However, not everyone feels the same.
Brexit doesn’t have to be a disaster
The concerns range from the free movement between Spain and UK, free health care, and the relative ease of starting and running a business. The economic reality will change when the UK leaves the European Union, but it doesn’t have to mean radical changes. So far, the formal exit notification has had no immediate impact on the legal arrangements between the United Kingdom and the European Union.
Specialists are already coming together to determine the best possibly outcome for everyone affected by Brexit. The newspaper Sur in English recently hosted a seminar in conjunction with Linea direct. One of the speakers at the seminar, Pedro Fernández, a specialist in international tax law, claimed that a ‘soft Brexit’ was the best option for both the UK and Spain. He insisted that the negotiations must honor the rights of the British living in Spain and the Spanish nationals living in the UK. He even suggested that business relationships would probably not suffer as much as we are sometimes led to believe. “The English approach to business is so practical and the English language is of great importance, and no matter what happens, I don’t see London losing its status and relevance in the world of business. London is the center of finance and I think it is going to remain so regardless of what Frankfurt or Paris want,” Fernández said.
The general feel of the seminar was positive, and Fernández gave British expats a little-needed reassurance. There will obviously be issues created by the UK’s exit, but in general, for the vast majority of British citizens who live in Spain, he believes life will not be that different.
What we know so far is that it seems to be unlikely that local societies of expats will suffer due to the big politics. Spain appears to be trying to create a new flexible reality that will serve as a safe buffer between the two nations.
The situation is dynamic
Every week the additional information related to this topic appears. Recently, ABC.com reported that Spain has put their name on the list to be the new nation to host the EU medicines agency once Brexit is put into effect. The agency currently employs about 900 people and is one of the biggest EU institutions with an annual budget of more than 300 million euros.
The Irish Times Suggests that Brexit keeps British property buyers away from Spain. The newspaper stated that ”UK citizens’ demand for Spanish homes dips amid concerns over sterling and healthcare”. Brit’s are the biggest buyers of properties in Spain, so the change in the market may affect this segment of the economy. According to the report recently published by the Spanish government, Brexit could wipe 2 – 4 billion euros off the country’s GDP and significantly dent its export revenue.
The effects of the new legal arrangements will start to come into force within the next few years. Negotiations and agreements will be analyzed. During this time, the future reality of British entrepreneurs in Spain will be clarified.
From what we know so far, Spain needs Brits just as much as Brits need Spain.