You might have organised buying your home overseas a long time ago, but when it comes to Brexit there are a few things to consider before moving overseas. The requirements for living in France after Brexit have not been set in stone yet, with the latest updates referring to minimum resources. There is also some confusion regarding British expats’ French residency rights, healthcare and work in France after Brexit. In this article we hope to shed some light on some of these and to help guide you through the issues that most Brits are concerned with.

Minimum Resources Requirement

Many Brits are concerned about the number of resources they need to have to qualify for French residency after Brexit, especially for those who have limited income or are pensioners, which can be quite stressful.

The French government has recently published an Arrêté in the Journal Officiel, which clarifies what criteria officials need to consider when making their decisions. Such decisions will be based on individual cases, as the authorities will need to look at an individual’s specific situation, whether they own their home, paying mortgage or rent, or they have extra savings or rental income in the UK.

The French government will consider reasonable income anything that is in line with the French in-work benefit, the so-called Revenue de Solidarité Active (RSA) which is currently at €564.78 per month. For British couples for example, it will be fine if they both declare the aforementioned amount as their household income, without needing to receive €564.78 each. Regardless of how many people are residing in a specific household, the amount required will be the same as the minimum amount of the RSA for a single person without children. The same amount will also be the guideline figure for other applications such as those regarding the French benefit level for pensioners.

French Residency: Providing proof of your income

Not everyone has to provide proof of their financial situation when applying for residency. If you have lived in France for more than five years, you will only need to provide personal identity confirmation documents, proof of address documents and evidence of the date you arrived in France.

If you have been living in France for longer than 5 years or you are married to a French citizen, you will still need to apply for a residency card before 30th June 2021. If you lived less than 5 years in France, you would need to apply as either employed or self-employed, job-seeker, student, retired or as the family member of someone who meets the above criteria or the spouse, civil partner or live-in partner of a French person. If you are retired or financially inactive, then you will have to provide evidence of how you support yourself including recent tax declaration, any pension payments or recent bank statements. A French government website in both English and French provides more information about moving to or living in France.

Transferring Funds: Currency Exchange

If you are a British home buyer, a currency specialist such as Universal Partners FX can help you navigate the current market while taking into consideration your specific needs, goals and your budget. UPFX offers excellent exchange rates and has a record in providing tailored and dedicated customer care to thousands of customers worldwide.

When considering buying your dream home in France, Universal Partners FX can give you peace of mind when sending money overseas. If you want to schedule ahead and safeguard your funds, talk to one of their foreign exchange experts today.

 

Sterling climbed against the dollar on Monday after the EU and UK announced that they will “go the extra mile” and continue with Brexit negotiations. 

After last week, when the pound fell due to concerns over a no-deal Brexit, this week the pound rose reversing some of its losses. The Prime Minister Boris Johnson and European Commission president Ursula von der Leyen agreed during a “constructive” call on Sunday to “go the extra mile” in order to secure a trade deal for the UK. With no deadline for negotiations, British officials have said that negotiations could continue until Christmas. 

What do analysts say?

Whatever happens to the pound is going to have an impact on Thursday’s Bank of England meeting which is expected to remain on hold. Analysts believe that if markets are worried and the pound falls on the prospect of a no deal, then the BoE might increase its QE purchases within a short period of time. Nonetheless, pound volatility as we near the end of 2020 is to be expected. 

Goldman Sachs has predicted that the pound will rise if there is progress towards a deal or a no-deal Brexit is avoided. Barclays analysts explained that there will be risks to the pound until an agreement is reached. As the Financial Times reported, some analysts have changed their mind, quoting Gregory Perdon, co-chief investment officer at Arbuthnot Latham, who had “second thoughts” about the pound rising, but he reiterated his hopes for a deal as  “both parties are probably better off economically with a deal.” “Let’s hope rationality wins in this instance,” he added. 

Others more pessimistic, have warned that the pound’s gains might be short-lived, as both the UK and EU have failed to reach a deal repeatedly in the past.

Talking to Reuters, Junichi Ishikawa, senior foreign exchange strategist at IG Securities said: “This is a temporary move higher in the pound, but it is still not clear that a no-deal scenario can be avoided.”

Whether there is a deal or no deal, some investors feel that the pound could still move sharply.

What’s next?

The UK left the European Union on 31 January 2020, but the ongoing negotiations between the UK and EU officials are focussing on securing and negotiating a deal about the rules that will determine and define the kind of relationship the two parties will have post-Brexit. Michel Barnier has commented that Boris Johnson has made a mistake for hoping to negotiate an agreement within only 11 months.

The two sides have until 31 December 2020 to agree a trade deal and, if there is a deal, border checks and taxes will be introduced. The transition period ends on 31 December, and tariffs and quotas will be introduced in the event of a no deal.

A joint UK-EU statement stated that “despite the fact that deadlines have been missed over and over we think it is responsible at this point to go the extra mile."

Are you Transferring Funds Abroad?

With the ongoing Brexit negotiations and unexpected volatility, contacting a currency specialist could save you time and money. If you are sending your family members money, get in touch with Universal Partners FX to find out how much you can save in your international money transfers. Universal Partners FX can provide invaluable help on efficient risk management and tailored solutions to your personal transfer needs.

Sterling rose after renewed hopes that a Brexit deal is still possible, as the UK Prime Minister Boris Johnson is heading to Brussels for a meeting with the President of the European Commission, Ursula von der Leyen. Heightened volatility is expected as the meeting could take place any time this week or over the weekend, with any rumours possibly to move the currency.

On Monday, the GBP suffered losses after news that the negotiations reached a stalemate, and the PM stated that he was willing to walk away. But, later, on Monday, as it was announced that Johnson would be travelling to Brussels for a face-to-face meeting with von der Leyen, the pound regained some of its losses. News about the meeting is not yet clear and markets expect the two to either meet on Wednesday or possibly Friday. On Thursday, a meeting of European Council EU leaders will also take place, and many predict that the meeting with von der Leyen could even take place in the weekend, to allow EU leaders to approve of a new mandate for the EU Commission President before the meeting.

With confidence dwindling and the possibility of a deal becoming more and more distant, markets will remain sensitive to any Brexit updates. While everyone was expecting Johnson and von der Leyen to discuss over the phone, the announcement of a physical meeting caught markets by surprise. At the current moment everyone hopes that a breakthrough could be reached by an intensification of negotiations at a more personal and political level.

What to expect for Sterling in 2021?

A lot depends on a positive Brexit outcome. The currency is also correlated with global business and economy, so any general positive upswings will also boost the pound. According to economists at Oxford Economics, global economy will expand and the UK will benefit from the trend, especially after being so badly impacted by the pandemic.

However, if both sides fail to reach an agreement, the Pound could fall below parity, as many believe there is much more downside risk than upside. There is a real risk to the outlook of the UK economy and the pound if a no deal outcome ensues, but, at the same time, there are multiple scenarios possible: a deal or no deal, as well as a so-called cooperative no deal and an uncooperative no deal. An uncooperative no-deal Brexit will be more disruptive than a cooperative no-deal Brexit, in which the EU and the UK will be able to cooperate on a number of pressing emergency issues.

The UK government announced on Monday 7th Dec. that they will remove those elements that the EU openly disagrees with in the possibility of a trade deal, including the law-breaking clauses of the Brexit Bill. However, the clauses might return if a trade deal is not agreed, which will point towards a hard, uncooperative no deal Brexit. In this scenario, the pound will fall to the lower end.

Are you Transferring Funds Abroad?

With the ongoing Brexit negotiations and unexpected volatility, contacting a currency specialist could save you time and money. If you are sending your family members money, get in touch with Universal Partners FX to find out how much you can save in your international money transfers. Universal Partners FX can provide invaluable help on efficient risk management and tailored solutions to your personal transfer needs.

The possibility of striking a Brexit deal before the weekend has helped to stabilise the pound as it recovered some ground, on Thursday. However, tensions are building ahead of the weekend as talks continue. This means that any Brexit-related headlines will create pound volatility and move the market considerably.

The clock is ticking

While markets are hopeful that a deal will be reached, the fact that the clock is now ticking with little space for manoeuvres means that the pound will remain sensitive. The Telegraph reported that Barnier told EU ambassadors that the UK has become more flexible and lowered its demands in regard to UK waters post-Brexit, demonstrating that the two sides are closer to an agreement. Fisheries and governance remain unresolved, with the latter to be negotiated once all other agreements are settled. Talks could now focus on the percentages involved in fisheries, but France might prove to be uncompromising on its fishing demands. According to The Telegraph, "Fishing nations such as France, Denmark, the Netherlands, Belgium and Spain fear Mr Barnier may cave too easily to British demands as talks enter their endgame. Paris insists the UK red line of annual fishing negotiations is unacceptable.” France has already clarified that it will veto any deal that goes against their interests.

A report in The Times said that "France and other hard-line countries are pushing for no deal in Brexit talks to soften up Britain before a reset in negotiations next year, unless the government makes significant concessions in the coming days," and unless the UK "backs down over the next 48 hours", a period of 'no deal' will "bring a chastened Britain back to the table next year".

The BBC's Europe Editor Katya Adler said that Brussels believe a deal will be possible in the event that the UK makes significant steps to meet the demands regarding fisheries, competition rules and governance.

Talks continue in London

Negotiations are at the final stages, but it appears that any last hurdles will require, maybe not divine intervention, but at least some help from leaders from the UK, EU Commission and France. Both Wednesday and Thursday, saw negotiators working well into the night for the final push.

On Friday, The Telegraph reported that talks will find Boris Johnson and Emmanuel Macron coming head to head this weekend, with France interested in securing access to fish in British waters.

According to certain sources, Macron's officials have been "lobbying hard" among different member states to agree to added demands on fishing, state subsidies and non-regression clauses, and these will be discussed by both the PM and the French president over the weekend.

EU member states could also veto any deal as they continue to have concerns about state aid mechanisms and how to enforce agreed environmental and labour standards. France and Denmark are reluctant to lose their fishing shares in UK waters.

Indeed, there is not much time left now, as negotiations continue and the upcoming EU leaders’ meeting on 10 and 11 December 10-11 means that a final deal needs to be ready to be agreed. Sterling will make significant gains if a deal is announced in the coming weeks and it could potentially continue to rise.

 

Are you Transferring Funds Abroad?

With the ongoing Brexit negotiations and unexpected volatility, contacting a currency specialist could save you time and money. If you are sending your family members money, get in touch with Universal Partners FX to find out how much you can save in your international money transfers. Universal Partners FX can provide invaluable help on efficient risk management and tailored solutions to your personal transfer needs.