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Romanian Government adopts measures in case of no-deal Brexit

Romanian Government adopts measures in case of no-deal

Brexit is a topic that has been widely discussed lately. Although we are fast approaching the moment of Brexit, which is scheduled for 31January 2020, the withdrawal agreement must still be ratified by the European Parliament, a necessary condition for Britain to be able to leave the EU on this basis. Thus, withdrawal without a deal remains a possible hypothesis.

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Mădălina Racovițan

Tax Partner, Taxation Services, Head of People Services

KPMG in Romania

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In this context, on 20 November 2019, Emergency Ordinance no.70, enacting various measures applicable in the case of a no-deal Brexit, was published in the Official Journal of Romania (no.933). The legislation would enter into force from the first day following the date of withdrawal (i.e. 1 February 2020) unless amended by a withdrawal agreement, and subject to the condition of reciprocity being met by that time, according to which the United Kingdom will grant at least the same legal rights to Romanian citizens as Romania grants to British citizens through this GEO.

Measures taken

— Immigration

  • The following definitions are made in the legislation:“Brexit individuals”(UK citizens who entered Romania no later than 31 January 2020, whether or not they have been registered with the General Immigration Inspectorate) and “post-Brexit individuals” (family members of UK citizens who have not exercised their right to free movement by the time of Brexit, but who had the status of family member on Brexit date, who enter Romania during the transition period to join the UK citizen located in Romania).
  • There will be a transition period until 31 December 2020 during which post-Brexit individuals may enter Romania and may benefit from the measures set out in this Ordinance.
  • Brexit individuals who have been registered or have obtained a permanent residence permit in Romania by the time of Brexit, have their status valid until 31 December 2020, including all documents issued by the General Inspectorate for Immigration. 
  • Brexit individuals who have been registered with the Romanian immigration authority by 31 January 2020, may apply for a temporary residence permit no later than 31 December 2020.
  • Brexit individuals who have entered Romania, but who have not been registered with the Romanian immigration authority by the time of Brexit, may apply to obtain a residence permit within a maximum of 90 days from the time of Brexit (i.e. no later than 30 April 2020). 
  • Post-Brexit individuals may apply to obtain a temporary residence permit within a maximum of 90 days from the time of entry into Romania.
  • UK citizens who have obtained a permanent residence permit in Romania by 31 January 2020, will have this right recognised but must apply to obtain a long-term residence permit by 31 December 2020.

— Social security

  • A1 documents issued by the UK or Romania for the UK, under European regulations, would cease to apply starting 1 February 2020 if there is no deal. After this date, the provisions of national law would apply.

— Recognition of professional qualifications and pursuit of professions

Professional qualifications and pursuit of professions for Brexit individuals which have been recognized in Romania by 31 January 2020, will still apply.

The legislation sets out rules on the recognition procedure applicable after Brexit, both for professional qualifications and for the exercising of professions, as well as for educational qualifications for the purposes of accessing the labor market, or to begin or continue studies.

The terms provided in this legislation may be modified, if the withdrawal agreement is passed or if there are new developments in relation to the withdrawal of the United Kingdom from the European Union.
 

© 2020 KPMG Romania S.R.L., a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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