Retaining your EU rights before Brexit
UPDATE: 19th March 2018. Transition deal agreed.
The British and EU negotiating teams announced on 19th March 2018 that the UK’s transition period with the EU post-Brexit will continue to 31st December 2020. This extends by 21 months the period during which UK citizens can move to Italy and claim the same rights as before Brexit (see below). When you have become legally resident, which is a simple procedure (see below), you will retain your right to reside, work, study or open a business in Italy. You will also retain your rights to subsidised healthcare and a state pension.
The deal announced by the UK’s lead negotiator David Davis and the EU’s Michel Barnier means you should have longer than you first thought to move to Italy and receive the same EU rights as British expats who relocated pre-Brexit. We say “should” because as Mr Barnier said: “Nothing is agreed until everything is agreed.”
The deal could still unravel, but this seems highly unlikely. You can plan your new life in Italy with some confidence. After the official Brexit day on 29th March 2019, the UK will enter an ‘implementation phase’. This will last until 31st December 2020.
The transition phase will give you extra time to sort out your affairs, apply for Italian residency and find somewhere to live. There is no need for the panic that the March 2019 deadline had been creating for many of our readers.
It is especially good news for British people retiring to Italy in the next three years. If you retire in the UK you get a UK pension that you can transfer to Italy. It should be increased each year just like in the UK, according to the “triple lock”, in line with inflation, average earnings or 2.5%, whichever is greater. It also means that those with more complex and expensive health needs can move to Italy until 31st December 2020 knowing that their right to state healthcare benefits in Italy will continue for tier lifetime.
UPDATE: 1 February 2018. Transition deal will not include right to move
The Prime Minister Theresa May has refused to allow the transition period to include the right to free movement of EU citizens to the UK. If reciprocated, it means that you have until 29th March 2019 to move to Italy.
Many people thinking of moving to Italy will be worried that they will face restrictions after Britain leaves the EU. In our most recent survey four out of every ten of our readers were worried by Brexit.
The news in December 2017 that an initial agreement had been reached not only sent the pound shooting up in value, but was a welcome Christmas present to the British people hoping for a long, affordable and relaxed life in Italy. It spelled out the rights of people moving to Italy until March 2019: “There will be no change to the rights and status of UK nationals living in the EU while the UK remains in the EU.”
It was also widely assumed that this would be extended until December 2020 as part of the “status quo” transition period. However last week Theresa May said, “I’m clear there is a difference between those who came prior to us leaving and those who will come when they know the UK is leaving.”
This caused immediate outrage. Guy Verhofstadt, the European parliament’s Brexit coordinator, said: “Citizens’ rights during the transition is not negotiable. We will not accept that there are two sets of rights for EU citizens. For the transition to work, it must mean a continuation of the existing freedom with no exceptions.”
However, for British people wanting to move to Italy, the message is clear that only by living in Italy before 29th March 2019, when the UK leaves the European Union, will your right to live in Italy be guaranteed.
Let Smart take the risk out of your currency transfers
Whether you are buying a property abroad, making regular payments or sending money back to the UK, you will want to protect the value of your currency transfers from fluctuating exchange rates. That’s where Smart Currency Exchange can help. We minimise the risk associated with transferring money overseas by providing expert guidance every step of the way.
Protect your currency costs
• UK nationals who are lawfully residing in Italy by 29th March 2019, will be able to continue to reside in Italy.
• That includes children born or adopted outside Italy after the 29th March 2019.
• Close family members (spouses, civil partners and unmarried partners, dependent children and grandchildren and dependent parents and grandparents) will be able to join you in Italy after exit under these rules, so long as the relationship existed on 29th March 2019 and continues to exist when they join you in Italy.
• You and your family members can leave Italy for up to five years without losing your right to return.
• You and your family will continue to have the same access as you currently do to healthcare, pensions and other benefits.
We spoke to Giandomenico de Tullio of De Tullio Law Firm in Italy who told us “In order to be lawfully resident in Italy a British buyer needs a certificate of residency (certificato di residenza) which is issued by the Municipality where he or she resides.”
To get your certificate of residency you simply pop down to your local town hall (commune – ufficio anagrafe) with:
– Your passport.
– Documents supporting your application such as a bank statement showing you have sufficient funds to support yourself.
– Evidence of a place of residence.
– A health insurance policy for a minimum of one year.
The council staff should help you with filling out forms, photocopying supporting documents and providing a revenue stamp. The police will also call round to your residence to confirm you live there.
Will this be enough to prove you are resident in Italy? According to the law, yes, but many people who have been living in Italy for years are applying for permanent residency, which you can apply for after living there for five years. At that point, all the restrictions on living in Italy and free movement within the 27 EU nations should fall away.
From a fiscal point of view, you are automatically considered Italian tax resident if your main home is in Italy. You would also be considered resident if you spend 183 days in Italy in any calendar year, or if your principal occupation is in Italy, or if Italy is the country of your most substantial assets.”
Already convinced? If you’re ready to buy a home in Italy, Property Guides will be at Your Overseas Home, where those serious about buying can get answers to detailed questions from trusted lawyers, agents and currency providers. Click here to apply for FREE tickets to shows throughout 2018.
The December agreement also laid out general agreements on the procedures for proving residency for those living in Italy before March 2019: “EU27 Member States may require UK nationals and their family members covered by the agreement to apply to obtain a status conferring the right of residence and/or obtain a residency document. Administrative procedures for applications for status will be transparent, smooth and streamlined. Where an application is required to obtain status, UK nationals will have at least two years to submit their applications. Residence documents will be issued free of charge or for a charge not exceeding that imposed on nationals for the issuing of similar documents. Further information on these administrative procedures will be provided when available.”
Family purchase could open the door
The right to bring family to Italy is extended to dependent children and grandchildren of the legal resident. This opens up another angle for British people who wish to retain their EU rights but are not in a position to move to Italy yet.
Although only one person needs to become legally resident in Italy for the whole family to benefit, the cost of buying the home can be spread among many. Read our brand new guide, Buying Abroad with Family to see how to organise the legal and financial aspects.
If you cannot buy before March 2019
For those who cannot establish legal residency in Italy before Britain leaves the EU, whether that includes the transition period or not, the “worst case scenario” remains as outlined in our guide “How to Live in Italy After Brexit”. Very roughly, these are rules that apply to Americans. Australians etc. It seems highly likely that a bespoke visa system would apply to the British, who arrive in Italy by the millions every year, but if not then these are the rules that could apply:
• Non-EU passport holders can stay in Italy for up to 90 days without getting a visa. This can be spread over as many visits as you like, allowing for at least 12 weeks in the country spread throughout the year.
• The “long stay visitor visa” allows you to stay for up to 12 months, without the need to obtain a residence permit. You must prove that you have enough money or income to support yourself without working.
• There is no restriction on you buying a home in Italy and there are no limits on where.
• Non EU buyers are generally able to get the same deal on mortgages as EU citizens.
• If you wish to rent out your home you will need local authority permission and you will have to declare any rental income in Italy.