Brexit and European property ownership

As we know hundreds of thousands of Brits already own property in countries across Europe

with Spain and Portugal topping the list of favourite locations. Indeed, a good deal of those

have chosen to leave Britain and live abroad permanently.

It’s no wonder then; that so many of those overseas based British subjects are extremely

anxious as they wait to find out just what Brexit will ultimately mean for them and their

future status as “EU nationals”. According to GOV.UK, UK citizens (living in EU member

states) rights are guaranteed until the end of 2020, but still subject to further negotiation

after that period.

So, whilst all the balls are in the air on that; its hardly a surprise that many others who were

thinking of overseas property ownership put their plans on hold until there was greater

clarity. However, more recently some potential overseas buyers have apparently taken the

plunge to get in on ownership before March 29th 2019. According to the current

agreements; residency before this date will guarantee it afterwards. The important caveat

to that of course is; ‘Nothing is agreed until everything is agreed’.

Meantime, one thing to take note of regarding all this; which may or may not be widely

known; are some interesting options in certain countries regarding residential status for non

EU nationals. This is potentially positive news for anyone still looking to buy in the EU after

Brexit.

Cyprus for example runs a limited ‘Golden visa’ scheme, open to non EU nationals prepared

who make an investment there in excess of EUR 2 million and apparently residency rights

are also available on ‘New’ property purchases above EUR 300,000. The latter of those two;

the right of residency is perhaps something worth considering if one is interested in

European property ownership after Brexit- assuming that you want to buy in Cyprus in the

first place of course. Perhaps, more interesting will be the future status of British citizens

there after Brexit.

Naturally, and with these kind of schemes, the devil will surely be in the detail with potential

changes in future for UK citizens not to be ruled out. I also understand that both Portugal

and Spain offer something similar with property purchases above EUR 500,000. Residential

visas can apparently be renewed every two years and after a varying period of renewal,

permanent residency status is also available. Once again, it will be interesting to see what

changes may come into force for British citizens after Brexit.

Now of course, in respect of all of this; there’s the question of affordability especially if the

pound falls further against the EUR. A prospect that is still very much on the cards if the UK

does leave the edifice without a deal. That is for sure a major reason to think very carefully

before planning such a move, ensuring to take expert advice, not necessarily from the

government though!

On a different note this morning, the Canadian dollar has surged today following news over

the weekend that the US, Mexico and Canada have finally agreed a new trade deal to replace NAFTA (North American Free Trade Agreement). The acronym for this new deal is

USMCA –The United States-Mexico-Canada Agreement. The upshot of this is that the CAD is gaining significant ground versus all of its major currency counterparts, not just against the

US dollar, but against the JPY and the EUR in particular.

Key Data releases due this week

2/10- 5.30am Reserve Bank of Australia monetary policy decision

(expected unchanged at 1.5%)

5/10-1.30pm Canadian September unemployment report

5/10-1.30pm US September unemployment report