British expats are considering abandoning their homes in the Canary Islands for Greece and Cyprus.
British expats could abandon the Canary Islands as part of a furious new Brexit row, but it looks like Greece and Cyprus are set to benefit after implementing more flexible rules for long-term tourists.
The British expats living in Spain face the threat of being forced to return to their home country, warns a leading expert.
Expats in Europe are reeling from the strict new rules put on them after Britain cut all ties with its European Union neighbors.
This is a consequence of last year’s Brexit, which has been seen as an economic and political move that could have long-lasting effects across borders.
Spain has just implemented a set of rules that pensioners must now prove an annual salary of £21,000 – despite the UK state pension currently standing at just £6,500 annually.
This new law threatens a huge exodus of Brits from Spain and its surrounding islands, after it enforced 90-day stays on unregistered UK residents living in the country.
The president of Lanzarote Business Association, made up of foreign businessmen residing on the Spanish island,
insisted a Briton “can stay in the Schengen zone for 90 days and to be able to stay longer you have to apply for a visa, but it is not yet defined how to do it”.
He added: “When you ask for it, it is like a visa for a third country.
“You need to have between 25,000 or 27,000 euros in addition to a private health insurance to be able to get that long-term visa to be able to be in Spain or another European country.”
The British embassy has warned UK nationals to treat Spain as their home and could be forced into immediate return if they don’t.
The warning comes in the wake of Brexit, which means that British citizens who are living abroad can no longer stay in an EU country for more than 90 days without proper documentation.
But despite the threat of possible deportation, British embassy officials have insisted those who had been living in Spain before the end of last year, have their rights secured under a Brexit Withdrawal Agreement between Britain and Europe, even if they don’t have their paperwork in order, yet.
A spokesman for the British embassy in Madrid has said:
“When making plans to travel from the UK to Spain, a UK national must make sure that they meet both the requirements to leave the UK and those to enter Spain, bearing in mind that they are not the same.”
“Until 6pm on March 30 only those who are legally resident (or have sufficient documentation to prove residency) are allowed to enter Spain.”
“From March 31, entry to Spain will only be granted to those passengers who can demonstrate that their journey is essential, as well as those who are already legally resident in Spain.”
“Ultimately, the decision on whether to grant entry into Spain is made by Spanish border officials.”
But with fury from British expats towards the strict rules implemented by Spain, countries like Greece and Cyprus could be set to benefit.
The Greek government is welcoming foreign residents with open arms in an effort to revitalize the country.
They have announced a trio of tax incentives aimed exclusively at foreign tax residents who are considering a move to the country.
The program is designed to help high earners, expats wishing to spend time in Greece, and the “work from anywhere” crowd.
These incentives are replicating similar moves that have been applied successfully on other European countries.
The High-Net-Worth Individual (HNWI) regime in Greece targets high earners that want to relocate their tax domicile and live there.
The new measure introduced a flat tax rate of $100,000 annually on income earned worldwide for 15 years. This move also helps address worries around post-Brexit immigration issues.
Greece is now offering an enticing flat seven percent tax for 15 years to foreigners who want to retire there.
Similar regimes in Portugal and Italy have also been warmly received, but the added benefit of Greece is that qualifying retirees may relocate freely there.
As part of its commitment to bring back jobs and investment, the Greek government has introduced a 50 percent reduction in income tax on Greek-sourced salaries for qualifying executives, freelancers, employees and other entrepreneurs who relocate to and work from Greece.
The new legislation aims to make it easier for foreign investors and experts in the digital world who are living abroad, while also cutting payroll costs of companies looking to take advantage of lower tax rates.
It is expected that this will attract expats and solve post-Brexit immigration issues.
