The ‘amazing’ state pension Brexit arrangement benefits expats in Spain, France, and other countries.
BREXIT has had significant ramifications for expats and anyone considering relocating to the European Union. However, one expat tax expert claims that expats will get a “fantastic” bargain when it comes to receiving their pensions.
Brexit posed a serious threat to UK expats in Europe and those who wished to relocate abroad. Despite the fact that the UK has been out of the European Union (EU) for seven months, the union and UK authorities continue to differ on crucial aspects of the agreement.
When it comes to the pension entitlements of Britons residing in countries like Spain, Portugal, and France, one tax expert claims the countries reached a “reasonable deal.”
As a result, according to Oliver Heslop of Global Expatriate Tax Services, there is some “wonderful” news for Britons who want to collect their state pension while living in another EU country.
“There was a great push for people to go out there before Christmas, and many were doing that,” he revealed on the Expat Focus program.
“British citizens were flocking to Spain, France, and other European countries to ensure their rights as EU citizens because we all believe that after January, things would be different; there would be no protections for all sorts of immigration and pension issues, which fueled the rush.
“We’re here now, and on Christmas Eve, a deal was struck to safeguard what I refer to as the new people.
“It safeguards persons who are migrating in early 2021 and in the future.
“They are entitled to a large pension.”
In general, he said, when it comes to expats collecting pensions in other countries, “the EU and the UK respect each other’s rights.”
Regardless of which member state Britons have chosen to migrate to, they will be entitled to their entire UK pension as well as any future inflationary benefits.
“In a word, this means that if you retire outside of the EU, you can earn a UK state pension that will keep up with inflation,” Mr Heslop affirmed.
“To me, that’s incredible, because it wasn’t assured in any way.
“They’ve really banded together and come up with a reasonable solution.”
The law, however, does not apply just to foreigners who have reached retirement age.
Working-age Britons who move abroad today, according to Mr Heslop, will benefit from whatever UK pension they receive. “Brinkwire News in Condensed Form.”