EU Hokey Cokey... Will it cost you?

  • Theresa May does not intend for Britain to remain a member of the single market due to the rules surrounding the freedom of movement.  Indeed, this is a topic on the minds of many expats or those wanting to move abroad, and while one of the first points raised in her speech earlier this week involved the confirmation that EU citizens would still be welcome to work in Britain, there is currently only a 'hope' that British citizens will be welcome to work elsewhere in Europe.  Access to the single market is the goal, but if this does not become a reality, the plan will be to change the economic model in Britain, effectively creating a tax haven, which in turn could threaten the industries of the remaining EU countries.

     

    How all this affects us individually really depends on our own situations.  Being an expat myself, and working closely with many ex-UK residents, I hear a lot of speculation regarding what will happen... 'We're all going to be kicked out' being regularly uttered.  In truth, no one really knows yet, although for those already residing in Spain legally, I personally doubt that 'being kicked out' will become a reality. One issue that may crop up is the cost of things. Be it cost of living, cost of taxes on property sales or purchases, cost of income tax, etc.  Depending on what agreements are reached regarding trade and access to the single market, we could see prices driven up in general - especially where I'm based on the lovely little island of Mallorca, as the logistics and import/ export costs could be affected.

     

    In order to pay for all of this, getting the best exchange rate on international transfers can make a big difference, not just with personal payments such as pensions, salaries or home running costs, but also in the business world with paying suppliers and invoicing customers who are not based in the same currency.

     

    Using a specialist Currency Broker will allow you access to much more favorable exchange rates than can be obtained from your bank.  It will also save you money on the cost of transferring as there are no unnecessary bank charges or commissions applied.  Tools such as fixing in a favorable exchange rate for a given period of time can assist in budgeting and remove the uncertainty and exposure caused by volatile markets - and it is certainly volatile at the moment with more to come for sure!

     

    We, at Premier FX, will be watching closely for any developments, but one thing is for certain... The Hokey Cokey of Britain leaving the EU will certainly 'shake it all about'!

     

    For further information, or a free and no-obligation quote on your next international transfer, contact me at sev.edmundson@premierfx.com or by Whatsapp to 0034 673 725 460

     

    Premier FX is authorised and regulated by the Financial Conduct Authority and this can be verified on the FCA website at www.fca.gov.uk.  Our firm's reference number (FRN) is 530712.

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