Christmas came early for those who have long awaited the possibility of a deal between the UK and the European Union as negotiations were concluded, and a deal agreed.
The EU and UK have agreed the so-called UK-EU Trade and Cooperation Agreement. The full agreement runs to 1256 pages and below we have summarized some of the key points of impact for mobility professionals.
In previous TaxNews articles, we have looked at the potential scenarios of a deal versus no deal and the potential changes to the mobility landscape. We are now able to move forward with certainty and clarity.
More detailed analysis will follow in future TaxNews articles over the coming weeks.
Short-Term Movement Across Borders for Mobility Professionals
- The Agreement sets out specific rules for short-term business visitors, business visitors for establishment purposes (i.e. travelers with the express purpose of establishing a business in the other territory), intra-corporate transferees, independent professionals and contractual service suppliers.
- Individuals falling within the criteria of these definitions will not be subject to restrictions that may impact market access such as economic means testing prior to being admitted to the territory.
- UK short-term business visitors travelling to the EU will be able to travel for 90 days in any 180-day period.
- For business visitors travelling for establishment purposes, no work permits will be required.
- Intra-corporate transferees can be accompanied by their partners and dependents with minimal administrative burden.
Long-term Movement Across Borders for Mobility professionals
- Each EU nation has determined its own rules for migration of British nationals. In Sweden, all British nationals legally resident in Sweden by 31 December 2020 must apply for a new residency permit (Sw uppehållsstatus). The application must be submitted to the Migration Agency by 30 September 2021.
- For British nationals arriving after 31 December 2020, Sweden’s usual domestic immigration rules for third country nationals will apply.
- The UK’s new immigration laws come into force on 1 January 2021. For those already living in the UK at this date, an application should be made to the EU Settlement scheme by 30 June 2021 to obtain settled or pre-settled status.
- The new immigration system is a points-based system (PBS) which prioritises skills over nationality and in this regard, there will be no favourable treatment for EU nationals over third-country nationals.
- Travel to the UK for longer than 6 months will require a Visa regardless of nationality and there are various Visa options available.
- At present short-term visits from existing EU nationals (note this does not include any countries that join the EU at a later date) will not require a Visa but the Agreement provides that the UK can change these rules.
The Agreement contains a 200 pages Protocol on Social Security Coordination which will be looked at in more detail in future editions of TaxNews.
In short, however, the Protocol ensures that individuals moving between the EU and the UK will continue to have protection in respect of certain social security benefits including healthcare cover and national pension scheme protection.
There will be no requirement to pay social security in more than one State, one of the key concerns prior to this Agreement being finalised.
Other Areas of Interest
- No nationality restrictions on senior personnel sitting at Senior management level and on Boards of Directors. This is welcome news to allow multi-national Boards to continue without personnel adjustments.
- Employment rights will be maintained and there is a reciprocal agreement on worker protection including provisions on minimum wages and collective wage agreements.
KPMG welcomes the clarity on Mobility and Social Security matters as a result of the Agreement. Detailed analysis of the rules and a comprehensive assessment of the changes that Mobility professionals and employees will face will follow in the coming weeks. If you have any immediate concerns or questions please contact the KPMG contacts referred to here.
Global Mobility Services
+46 72 186 90 02
Global Mobility Services
+46 73 397 12 34