On Friday th 24th of June the world woke up to the shocking news that the majority of the UK population had voted to leave the European Union, in what has now been dubbed “Brexit”.
On Friday th 24th of June the world woke up to the shocking news that the majority of the UK population had voted to leave the European Union, in what has now been dubbed “Brexit”. While it’s going to take a while to iron out all the intricacies that come with the UK disentangling itself from the EU, the repercussions have already been felt in financial sectors all over the world. For example, in South Africa the rand tumbled 8% the morning of the Brexit decision.
Politicians have resigned, promises have been backtracked on, Scotland is threatening to block the move (and have another vote for their independence) and people the world over are wondering what kind of effect this is going to have on their lives and those of friends and family in the UK and the EU.
Here are the 3 key factors that you should be aware of:
We are entering a period of uncertainty
The saying “It’s going to get worse before it gets better”, is particularly true in this case. We are entering a period of uncertainty: our Prime Minister has resigned, as well as other key politicians, the pound crashed to its weakest level in 35 years and there has been a spike in hate crimes against foreigners throughout the UK.
While all of these factors indicate that the UK has got a long and arduous uphill battle ahead – things are bound to improve. Across the nation there have been calls for everyone to stick together and not panic, as there is still a two year (probably more) protracted negotiation period where the UK and the EU will iron out the kinks, sort out new trade agreements and ensure that the UK isn’t left reeling in a chaotic aftermath. A new Prime Minister will be voted into power to steady the ship and steer the country where it needs to go. The decision has been made, and no matter whether you voted to leave or stay – the UK will need everyone’s support if it’s to make this decision work for them.
Travelling to the EU is unlikely to be drastically affected
One of the main concerns raised by most remain voters involves potential travel complications in what was a visa-free zone. It’s still a long while until the repercussions of the Brexit vote become clear, and there is still an elongated period of negotiations to get through before we can be absolutely sure of what the new regulations will be.
However, it is thought that the EU will maintain a strong relationship with the UK, and despite the probability of a visa processes being introduced, they should be minimal. Britons wishing to travel to any EU country will be able to do so easily and with little hassle, as the money that tourists from the UK bring into Europe is simply too much to turn away.
Buying property, tax implications and working in the EU
Buying property within the EU was previously a pretty straightforward procedure, with many UK citizens purchasing holiday homes on the shores of Spain, Portugal, France and Italy. Reasonably priced houses, low taxes and warm weather have always drawn Britons across the sea – so what happens now? Once again, it’s a waiting game – things will stand as they always have until the negotiations are completed. There is hope that taxes for UK citizens won’t rise too drastically, as this would negatively affect the real estate market in the EU’s most popular expat hotspots.
The Leave Campaign leader, Boris Johnson, penned in the Daily Telegraph:"British people will still be able to go and work in the EU, to live; to travel; to study; to buy homes and to settle down." This statement is seen as hope that going to live, work, travel or retire in an EU country will still be relatively easy – that being said, we will have to wait and see what immigration policies the UK come up with and how the EU will reciprocate.
When all’s said and done, whether you wanted to stay or leave – the only certainty is that we are entering a period of transition. The UK needs leaders with strong morals and policies, but more importantly with tons of compassion. The situation needs to be dealt with gently and with unity from all of the UK’s citizens – only together can the UK’s future remain bright.
In the meantime, continue to travel to your favourite destinations, explore those countries that you have always wanted to and buy your holiday home in the sun. For more expert advice and tips on travelling to Spain during this unstable period,contact us and have a look at our property for sale Costa Blanca.