Trade Secretary Liz Truss said that countries outside the EU want Britain to “get on with” Brexit in order to begin striking free trade deals. This of course does not mean that Britain is in a desperate situation, as a Bloomberg article argues. In fact, London remains the epicentre of the financial world and Brexit just cannot simply erase London's “trading allure,” according to foreign-exchange market data.

Liz Truss on Tour

During her tour of Australia, New Zealand and Japan, Liz Truss said that senior figures she met in these countries expressed their desire to reach agreements with the UK very "quickly.” She said: "They just want us to get on with it. And what they care about is deepening our relationships with them. And also they want Britain to be at the table at the World Trade Organisation making the case for free trade."  

In the process of drawing a post-Brexit trade agreement with Japan, Truss argued that Brexit would be a positive thing, attracting new businesses to Britain and she called such businesses to express their views on what the deal should contain. Truss clarified that countries such as Japan, Australia, New Zealand and the US were considered "like-minded" countries with which the UK can begin striking its trade deals after Brexit. She said: that these are “all countries who are like minded, they're democracies, they believe in free enterprise and free trade, and we want to work with them to promote those ideas across the world." This is important for Britain in order to reach bilateral trade agreements in areas such as financial services, artificial intelligence and technology.

In regards to foreign leaders’ "massive enthusiasm" to strike trade deals with the UK, Truss said: "In Australia, from the Prime Minister downwards, everybody in the government is very, very keen to move forward with the deal with the UK, and restore some of those historic ties, which may have been diminished while we were part of the EU. The way I see it is that Australia and New Zealand are old friends ... with which we've got new opportunities." She continued: "There is a real enthusiasm for getting on with it. I heard that today from ministers in Japan. They want the deal done as quickly as possible. And I heard it in New Zealand and Australia as well." 

Delivering Brexit

She noted that ministers needed to resurrect the public’s lost trust in delivering Brexit on time despite previous delays. Truss warned that voting alongside Jeremy Corbyn was "hugely problematic" and that Tory MPs needed to be "backing the prime minister to the hilt."

Truss urged that now is the time that "we need to be looking forward and looking at the opportunities of Brexit. I think there's too much navel gazing going on at the moment about what's happened in the past. The whole point of Brexit is taking control over any rules and regulations, being able to strike free trade deal for the first time in 45 years. There's a huge world out there, which is incredibly enthusiastic about that potential and possibility. And that's what we will move on to."  

She underlined that, "We simply need to deliver Brexit. And the Prime Minister is being very clear. He won't be seeking extension, we are going to leave the European on the 31st of October. And that takes the wind out the Brexit Party sails."  

London remains the “epicentre” of the financial world

For Truss, getting on with Brexit cannot be disastrous, and this is also supported by a recent article by Bloomberg columnist John Authers. According to Authers, Brexit cannot diminish London’s appeal as a global financial centre. As he writes, “The foreign exchange market remains by far the world’s largest and deepest. It is where the world’s financial imbalances are resolved. And London’s grip on that market remains stronger than ever. Amazingly, given that London’s access to the EU’s financial markets will be weakened under virtually any version of Brexit, its hold over foreign exchange trading has only tightened in the three years since the referendum.”

While many banks and investors might have arranged to move part of their operations to Paris or Frankfurt, the truth is that they have not yet done so. Authers points out to the latest findings of the Bank of International Settlements’ triennial survey of the foreign exchange and interest rate derivatives markets, published last week, and which shows the market shares of the U.K and the U.S., of all foreign exchange trading.

As the survey shows, London hasn’t lost its appeal, and this is due to certain advantages. It is, in fact, that London’s natural trading day “overlaps at least a little with the main markets in Asia and the U.S.,” as well as the use of the English language, and mainly the “huge pool of FX-knowledgeable talent,” that continue to give it an advantage. As Authers admits, against his own beliefs, is that the survey surprisingly proves that the Brexit vote has not yet caused “irreparable damage to the City of London.”

Importers and Exporters: Universal Partners FX 

While there are positive voices around us about Brexit, volatility and a weaker pound might continue to affect foreign exchange and transferring money abroad. If you are an importer or exporter making regular payments, the best option for you is Universal Partners FX. UPFX’s specialists in foreign exchange will help you take advantage of expert knowledge and strategic financial planning and will provide valuable guidance to protect your business from the risks of a volatile currency market. Get in touch with them today and find out how much they can save you on your international money transfers.

Life after Brexit might seem uncertain, but for many Brits the decision to buy property in Spain is a certain fact. While there might be certain changes in terms of British citizens’ rights with perhaps more documentation and bureaucratic controls, the promise of a sunnier climate and a richer lifestyle is definitely a key factor when moving to Spain.

UK nationals living in the European Union

As the government notes, continuing to live and work in the EU after Brexit would be influenced by each country’s rules and regulations. If you are a resident in Spain, you should register as one, as well as register for healthcare. You should also check if your passport is still valid for travelling and exchange your UK driving licence for a Spanish one.

Buying property in Spain

Buying property can be a very hard decision and a very complicated process. But if you have done your research and sought out the right people to offer support and guidance, you will easily navigate all the complexities and be prepared for any unexpected changes. For one, getting legal advice from an independent lawyer who had good knowledge of Spanish land law (urbanismo), will help you when dealing with developers or estate agents. In this respect, you will be protected from fraud and you will safeguard your interests and finances. While you might be very excited buying or building your own home abroad, being careful with the individual agents and lawyers, and always looking after your own interests is very wise in order to avoid disappointment.

The same goes with the Spanish notary public who will offer legal advice, prepare the contract and issue the public deeds. You might prefer to work with a British estate agent but ensure that they are reliable and registered with the Law Society in the UK. If you are looking for a lawyer or translator the government’s website has qualified professionals on their website.

If you need more assistance with the language and communication, especially when signing a contract, you will need to get an independent translator by checking the Spanish Ministry for Foreign Affairs website.

Things to do before transferring money to purchase the property

Before you buy the property, make sure you check the land registry extract (nota simple), so you know that the sellers are the same with the registered owner(s) of the property and land. It will be wise to check that there are no debts or charges, including a mortgage or any legal proceedings against the particular property. Documents such as the planning permissions and the property itself should have all licences and permissions.

In any case, having the property surveyed by a chartered surveyor would be the best route when you want to have everything in order without worrying. When you purchase the property you will pay tax, so you should know the cadastral value of the property and how much purchase tax will be due.

Check important documents:

First, make sure that the previous owner paid the owner’s annual property tax (IBI), by seeing the receipt. The town hall should provide a certificate proving that there are no unpaid rates from previous years.

You will need to get the cadastral certificate (with boundaries and size of your plot) that must correspond to the Land Registry records. You will need a habitation certificate to connect the electricity and water companies, as well as a receipt to prove all utility bills have been paid. You might also need a certificate signed by the President of the Community of Property Owners stating that there are no outstanding debts.

From 1 June 2013, all homes for sale or to let in Spain need an energy efficiency certificate, so ensure that the seller has this certificate. Once you get all documents, you should register the property in your name with the Land Registry.

Transferring funds

When you have all the papers in order, you would start thinking about transferring your funds from a UK bank account to a Spanish account to pay for the property. Transferring large amounts of money can be stressful, so getting in touch with a reliable foreign exchange specialist such as Universal Partners FX will protect your funds and save you time and money. UPFX have many years of experience in the currency market and can provide the best tailored solution for your money. Get in touch with them today and find out how they can help you make the most of your money.

 

Moving to Italy and buying property might be a dream for many, but what happens when Brexit is looming on the horizon and your EU status is suddenly questioned?

Brits can buy a property in Italy, despite being from the EU or not, so Brexit won’t have a big impact on your decision to buy property there. However, as with other European countries where Brits are relocating or buying a property as residents, you will have to register as a resident in Italy, check whether your passport is valid for travelling, exchange your UK driving licence for an Italian one, as well as register for healthcare. So, buying property in Italy means also deciding about your residency as you must register as an Italian resident if you are considering staying there for more than three months. 

Residency

If the UK leaves the EU with a deal, the rights of all UK nationals living or working in Italy legally will be recognised by the Italian government. However, if there is no deal, UK nationals living in Italy will have to get a non-residence permit by 31 December 2020 to protect their rights to work, healthcare and social benefits.

When it comes to buying a property after Brexit, being a non-resident and non-EU national, will mean that you will have to use the house as your holiday home, while only being allowed to stay there a maximum of 180 days per year, but only 90 days at a time. If you buy the property as a resident, then you will have to live there for over half the year and state that the property is your main residence. This will lower the amount of money you have to spend on purchase and local taxes.

Buying a property

Buying a property in Italy is usually performed by a notary who is a qualified lawyer to conduct the transfer of the property between the seller and yourself. The notary will prepare the deeds, check for outstanding charges, and make sure that the property meets required standards. They will also make sure there is a translator present when you sign the legal contracts. The translator might cost you a couple of hundred euros.

As a buyer, you will pay the purchase taxes and the notary’s fees. The notary will be paid approximately 1-2 percent, depending on the price of the property.

Buying property as a resident or non-resident, as well as from a private individual or a company are factors that will affect the kind of taxes you will have to pay for your property. Buying from a private individual will involve paying the cadastral fee which is defined by the property’s size and location. Additionally, if you’re buying as a non-resident, you will have to pay taxes on the cadastral value, as well as smaller taxes. While buying a house as a resident will involve lower taxes and obtaining a residency permit within the next 18 months, only do so if you intend to become a resident, otherwise, you will still have to pay the relevant taxes plus a penalty of 30%.

For a property bought from a company, you will pay a similar cadastral value on the property as buying it from an individual, especially if you’re buying as a non-resident, but buying as a resident the taxes will be much lower. A more favourable situation arises when you buy a winery or a country property which will demand you to pay much lower taxes (just 1 percent on the purchase price in tax). If you are buying an Italian company for commercial use, then you only pay a few fixed fees and no taxes.

Can I buy a property in Italy immediately?

While the time depends on the individual case, you can usually finalise a sale within approximately 10 weeks, as there is paperwork to be completed, registrations to be updated and other related issues that might arise. If you arrange power of attorney, this might take longer, but if you are present yourself and the property is ready to go with all the relevant papers in place, then you are all settled, and the process can be quick.

In case, however, you don’t have the relevant funds in place, but you have fallen in love with a property, then it is possible to sign a purchase agreement in order to reserve it for maximum a month until you can sign the preliminary contract.  Paying a deposit of around €2,000 – €10,000 will protect you against any legal issues, but you will be unable to get it refunded if you no longer wish to buy the property.

Buying a property in Italy with a limited budget is also a possibility, as there are village houses or unrestored old properties that are much cheaper than modern buildings or properties in expensive areas such as Tuscany.

 

Foreign exchange specialists: Universal Partners FX

Whether you are on a limited budget or you can afford a luxury villa, you are still concerned about the value of your funds when you exchange them into foreign currency. In terms of currency volatility, things in Britain haven’t really changed. The prospect of a no-deal Brexit is extremely possible as the latest updates show.

With the Internal Market Bill fiasco and a continued stand-off over fishing rights, a no-deal may be the most likely outcome. Any news that comes out between now and the end of the transition period will certainly affect the euro rates one way or another. For example, if the Internal Market Bill is upheld, this will likely lead to legal action being taken by EU and further jeopardising a deal. Ongoing Covid-19 impacts will also affect the economy and the pound, but eyes will be on the EU as they consider more stimulus packages that will further increase debt and impact the euro.

One thing is for sure, it is hard work keeping track of rates so it is important to protect your funds by getting assistance from a currency specialist such as Universal Partners FX. UPFX can offer you the best possible exchange rates and can even fix exchange rates in advance to avoid market movements costing you money. Contact us today to find out how much money you can save on your international money transfers.

Buying property abroad can be hard but is especially harder when considering the current political impasse. After the prime minister, Boris Johnson, received the Queen’s approval to suspend parliament for five weeks from early September, in a move that has been criticised as “profoundly undemocratic” and “sinister,” Brexit continues to be one of the thorniest issues in the UK.

Brexit and expats

This is why, when thinking of moving abroad, British retirees might need to firstly research and understand the complexities of post-Brexit life outside the UK.

What would a long-term residency mean, or what would be the changes to pensions for Brits abroad. For example, it is unclear whether transfers to a Qualifying Recognised Overseas Pension Scheme will be tax-exempt post-Brexit. Additionally, for anyone considering buying property abroad, the biggest issue is currency volatility and its impact on international money transfers. Once you decide to buy your property and want to transfer funds to pay for your property, you don’t want to find that your hard-earned money was significantly affected by the movement of the pound due to Brexit developments.

What to consider when deciding to purchase a property

Researching and understanding local laws regarding buying a property should be one of your first steps. The process of buying a property abroad will be different from place to place, with specific laws and regulations for foreign residents buying property. If you would like to invest in a property abroad to let it afterwards, you should most likely follow the same steps, and research the laws about renting. You don't want to spend a large sum of money on a property that will be chained to a set of rules and limitations, something that will eventually hurt your funds. While you might be looking at European countries such as Spain and France, you might as well do your research regarding other countries where housing prices, the pound's exchange rates, and the local laws are most favourable to you.

Buy to let

Investing in a property abroad that you can also let is a way to increase your income, so deciding the right location and price, and understanding its potential and rental yield are important factors. If you are unsure, discussing this with mortgage brokers, financial planners and accountants might help you decide on whether this is a good investment.

When you deal with tenants, it will be good to have a mediator such as a property manager, who will help you find the right tenant and organise maintenance issues. As long as you are prepared to maintain a property abroad and make it attractive to tenants, then you would also be prepared to pay the costs regarding maintenance and renovation.

Buying a property

Once you have decided on a property, you need to make sure that all papers are in place and all processes are transparent. Get receipts and documents to prove your transactions or agreements and never leave anything to chance. You must always get the title deeds to the property or land, so you know that you own what you have paid for. Also, you need to be aware of any outstanding utility bills or local tax from the previous owner of the property.

If you require financial help to purchase your property, you can get a mortgage, but first do your research and find the right mortgage lender for you. You will need specific mortgage from a bank that supports your chosen country. As it is a competitive market, there are lots of options for you, so get the right solution to meet your own borrowing needs.

Transferring money

When you’re buying property, you’ll need to transfer money overseas. Universal Partners FX is a leading foreign exchange specialist that can assist you with your international currency transfers and save you significant amounts of money on large transfers. UPFX will provide an affordable way to transfer money overseas and protect your funds from foreign exchange risk. Get in touch today to find out how much they can save you on your international money transfers.

On Monday, Tony Lloyd, the shadow Northern Ireland secretary, said that Boris Johnson was pursuing a Brexit that was either “disastrous” or a “fantasyland wishlist.”

Lloyd was responding to a letter that the prime minister had written to the EU about reopening the Irish backstop issue and suggesting its replacement by some form of commitment that would guarantee the prevention of a hard border between the UK and Ireland. Johnson’s new position contradicts his previous support of Theresa May’s deal. As Tony Lloyd said: “Boris Johnson seems to have forgotten that he voted for Theresa May’s deal including the backstop. Whichever Brexit outcome he pursues, whether it’s a disastrous no-deal or this fantasyland wishlist, Boris Johnson clearly has no qualms about putting jobs, rights, prosperity or peace in Northern Ireland at risk.”

While Johnson believed that the EU will be receptive to his proposal, on Tuesday Donald Tusk rejected his request. As a response, a Downing Street spokesman said: “that unless the withdrawal agreement is reopened and the backstop abolished there is no prospect of a deal. It has already been rejected three times by MPs and is simply unviable as a solution, as the PM’s letter makes clear.”

Johnson has stated on more than one occasions that he is willing to crash out of the EU without a deal on 31 October, despite warnings that the UK will face food and medicine shortages.

The letter

Johnson’s letter is an attempt at negotiating with the EU which appears as a regressive move, bringing up again the controversy around a hard border with Ireland that the EU and many in the UK and Ireland are clearly against. Before meeting European leaders, Johnson addressed the four-page letter to the President of the European Commission Donald Tusk saying that the backstop is “anti-democratic and inconsistent with the sovereignty of the UK.” He added that there could be different customs arrangements at the Irish border within the two-year transitional period after Brexit. However, having some general commitments in place that would prevent a hard border until the proposed system was agreed, was also a solution, Johnson noted.

But the EU does not wish to renegotiate the withdrawal agreement and the backstop. According to Guardian sources: “There was a two and a half year negotiating process in which the EU compromised, including on the question of the backstop. The withdrawal agreement is not open for renegotiation and the backstop is not open for change. A legally operable backstop to avoid a hard border remains central to the withdrawal agreement for the EU27.”

Johnson said: “I propose that the backstop should be replaced with a commitment to put in place such arrangements as far as possible before the end of the transition period, as part of the future relationship. I also recognise that there will need to be a degree of confidence about what would happen if these arrangements were not all fully in place at the end of that period. We are ready to look constructively and flexibly at what commitments might help, consistent of course with the principles set out in this letter.”

In the letter, he claims that the backstop is anti-democratic because it could force “the UK potentially indefinitely into an international treaty which will bind us into a customs union and which applies large areas of single market legislation in Northern Ireland”.

But an EU source described the letter as “a total moving of the goalposts on an issue of great importance and sensitivity that affects the lives of people on the island of Ireland.”

What happens next?

Johnson has also been accused by Tory MPs who have written a letter saying that the prime minister is preparing for a no-deal Brexit as his demand for the abolition of the backstop is simply impossible.

According to No 10, the prime minister has been clear: “there cannot be any actual negotiations unless the backstop goes; that’s the message he has delivered to leaders in his phone conversations and he will do that face to face. We have been clear that what the EU needs to understand is unless the withdrawal agreement can be reopened and the backstop abolished, there isn’t any prospect of a deal.”

Johnson will be meeting Merkel in Germany on Wednesday and on Thursday Macron, but the eyes of EU leaders will be on the UK, Tory MPs and opposition leaders as they attempt to block a no-deal Brexit on 31 October.

Are you importing or exporting?

If you are an importer or exporter who transfers money internationally, you are aware of the unpredictable movements of the pound due to Brexit and ongoing political developments. Universal Partners FX can offer valuable assistance, in-depth knowledge of the markets and tailor hedging strategies to help you make the most of your money. Give them a call today and find how much you can save on your international money transfers.

Spain is a great choice for buying property abroad according to business and finance magazine ABC Money.

While Brexit continues to worry Brits buying property in Spain, the article argues that by 2020 political uncertainty might dissipate and Brexit be resolved. As it notes, “If this does happen markets may begin to stabilise, and there will be far less volatility, for example in currencies. Understanding the costs can make it easier for investors to feel confident.”

However, with Boris Johnson as the new Prime Minister and a new cabinet committed to “leaving the EU on or before 31 October, ‘no ifs, no buts,’” it is hard to consider what kind of Brexit resolution there will be.

Nonetheless, it is hard to change your decision to buy abroad once you have made up your mind. Of course, Brexit might be something that will remain a constant source of anxiety, but this does not mean that it can cancel out your decision to buy.

Spain as an ideal choice

If you like feeling part of community, then the large British expat community living in Spain might be enough reason to convince you. More importantly, life in Spain is relatively cheap, property value is on the rise and the quality of life is higher than that of the UK.  Many expats choose sunny places such as the Costa del Sol and Marbella, while others prefer the bustling life of cities such as Barcelona, Madrid and Seville.

Property prices

The Spanish property market is currently enjoying a healthy rise, and this is not just temporary. According to a report from Marbella’s real estate agency Panorama, residential property prices rose an average of 6.7 percent across Spain. Hundreds of new modern houses are being built in the greater Marbella area (including Estepona-East and Benahavís), while 20 year old buildings are being refurbished to the highest standards, with many high quality properties for sale.

The report points out that according to the Ministry of Public Works and figures of the National Institute of Statistics, “2018 ended with the best results of the last ten years, with 557,919 residential properties sold (not including public housing sales) of which 50,875 were newly built properties and 507,044 sales of resale properties. These figures represent an increase of 9.4% over the previous year with a sharp upturn in sales noted in January 2019.”

Prices are now returning to those seen before the financial crisis, something that means that they will continue to grow. In this respect, ABC Money argues that “investing in 2020 should see you with a property that will continue to grow.”

Buy to let homes

In the recent years, many are deciding to rent their holiday homes and increase their income, getting a healthy return on their investment. Even if you use the property as a holiday home, you can still rent it during those months you are back in the UK. Since Spain, like many other Mediterranean countries, is a popular holiday destination, with a holiday market that is growing, such a decision makes perfect sense.

A great time to invest in property

With interest rates being very low, now is perhaps the ideal time to get a loan and invest in the Spanish property market. With savings being low and investment opportunities in other countries poor, investing in a property might be the safest way for return on investment. According to ABC Money, “with the Central Bank of Spain forecasting a 10.5 per cent return on residential properties now is the perfect time.”

Universal Partners FX is a great choice when you consider buying a property abroad and transferring your money. With years of experience in the currency market, UPFX are experts in transferring large amounts of money fast and securely. Get in touch with them today to find out how much you can save on your international money transfers when you buy a property.

With Brexit being shrouded in uncertainty, many Brits are dreaming of moving abroad and buying property in the vibrant and romantic southern part of France. 

Southern France and, particularly, Provence, as a Telegraph article tells us, is also the place where Vincent van Gogh produced more than 150 paintings, a place where “the lure of the Bouches-du-Rhône department of Provence endures” to this day. Beautiful and magical, “an hour north-west of Marseille and 25 minutes south from the Eurostar or TGV at Avignon, there is a sophisticated array of eateries that service a well-established second-home market, where a pale-olive or dove-grey shuttered Provençal stone mas (farmhouse) is the dream.” It is not difficult to imagine the lures that have driven many of us to such a location. 

Natural beauty dispels Brexit fears 

Brexit anxieties, the spectre of Britain’s European identity weighing heavy on the political landscape, seem to dissipate as one imagines the French medieval villages nested amidst olive trees and pines. As an agent with Knight Frank attests: It’s a “picture-perfect cluster of medieval villages, with traditional weekly markets under plane trees, all with the backdrop of the foothills of the Alpilles, this is classic Provençal life.”  

There is culture and art everywhere, with half of the buyers being wealthy Parisians and Monaco royalty, and the other half British, Swiss, Belgians and Germans. As many of us dream, a big 3-5 bedroom house with a pool and garden seems to be as close to perfection as it gets, but not without a price: “For €1 million (£900,000) you can achieve, this but not with a view; this can push up the price to €2.5-3 million.” For example, with €7.9 million, you can get pure luxury in Saint-Rémy: a “seven-bedroom property … within 10 acres of grounds with 500-odd olive trees, an outdoor cinema, a swimming pool and eye-catching sculptures.”  

Even with prices this high, buyers are still very much interested. Millions of worth of property is still as alluring as ever, since the market is active “and things go for close to asking price.” As the Telegraph article points out, “people choose to buy in Les Baux for the views and in Saint-Rémy for the address.”  

Little Britain? 

Interest in Southern France has remained strong and continues to grow, as many Brits desire their own warm corner in this part of the world. As a result, house prices have increased but, more recently and due to Brexit, prices have dropped and somewhat stabilised. Provence has become the home for many of us Brits, where we have brought our traditions, from cricket teams to fish and chips and pubs.  

But is this what we really dream of? Brexit has brought to the surface many issues regarding our identity, and replicating our British lives abroad appears to be problematic. On the one hand, “we Brits have rescued from oblivion and restored with care buildings that would otherwise be heaps of ruins. We have brought money and tourism to French regions and, in some cases, helped to revive villages that were moribund. Many Brits take an active part in the local community and in cultural and social associations, although most of us are careful to act like foot soldiers rather than generals.” 

 

For these reasons, and because of Brexit, France is in many ways our second home, but we should avoid turning this beautiful and magical corner into little Britain, altering the tranquility and unique character of French customs.  

If you are also dreaming of moving to France and, like us, you have fallen in love with that magical part of Provence, then Universal Partners FX are here to solve all your questions about buying property abroad and transferring your money. Give them a call today and find out how much they can save you when transferring your hard-earned money.  

Property in Spain

Neither a weak currency nor Brexit seem to deter Brits from dreaming of buying their property in Spain. According to removal company AnyVan, Spain is the number one desired destination for British expats, beating such places as Australia, New Zealand, Canada and Dubai.

 

AnyVan poll

In a new poll carried out by removal company AnyVan, people in the UK were asked where they would like to live if they could choose anywhere in the world. 13% of Brits said they would choose Spain, while a 12% said they would equally prefer New Zealand or Australia. Other popular places were the US (10%), Canada (9%), Italy (7%) and France (6%). The CEO of AnyVan, Angus Elphinstone, said: "It's nearly a national sport in the UK to dream about moving. From flicking through property prices and listings on Rightmove to sitting down to watch one of the vast number of primetime TV shows offering advice to those looking to change homes for a place in the sun. Our research highlighted where people dream to move to, but there were still 16% of residents who didn't want to move anywhere."

The research demonstrated the differences between ages, as younger people looked for career opportunities in wealthier and bigger countries, where they can work and live comfortably. For example, those under the age of 34 were attracted to the US, with 16% admitting the US was their favourite, followed by Australia and Spain. Dubai was also a favourite among the young, as 4% wanted to move to the Middle East. On the other hand, those over the age of 55, dreamt of moving to New Zealand (14%).

 

Spain: the UK favourite

It's not just because of the sunny Barcelona or Madrid, the flamenco, bullfights and paella. Spain is so much more for Brits and offers everything they could wish for away from home. It's a stunning destination, with a lively culture. But it has also started to improve economically, with youth unemployment being down to 33 percent from over 50 percent in 2013. This is a place where both the young and the old will get to enjoy a rich lifestyle, without feeling isolated or far away from home.

 

Buying property in Spain is not such a bad idea

Brexit uncertainty might not be a defining factor when choosing to move abroad, but it can definitely hurt your finances when transferring large sums of money. It is not surprising that many economists and business professionals are warning that a no-deal Brexit will make things even worse, as the price of the pound could plummet, while many businesses could be under threat. The pound is currently down, especially due to fears of a hard Brexit and because of Boris Johnson, the frontrunner to replace May, who has said that Britain could leave the EU without a deal at the end of October.

If you are enthralled by Spain and its people, and want to move there, Universal Partners FX can help you with your international transfers and explain the process of moving funds or making regular payments when buying a property abroad. UPFX operates with no hidden fees and ensures that multiple international payments are more cost-effective. With their comprehensive hedging strategies, you can get a level of financial stability and security. Their unparalleled customer service means that you can get hold of them at any time, and they will make sure that your money will get where it needs to be within 24 hours.

If you would like to learn more or want to just understand how currency experts can save you money, give them a call today.

Businesspeople chatting in a boardroom

A no-deal Brexit will affect the UK economy, despite Boris Johnson claiming otherwise. Johnson, who is the main candidate to become Britain’s next prime minister, has more than once argued that a no-deal Brexit is possible on 31 Oct., or, as he promised more recently, “do or die.”

Speaking to TalkRadio, Johnson said that Theresa May’s withdrawal agreement needed more than a few tweaks, and that “It’s got to be, you know, we need a new withdrawal agreement if we’re going to go out on the basis of a withdrawal agreement.” While, on certain occasions, he gave the impression to some MPs that he was unsure about leaving the EU on 31 October, with certain MPs he was quite definite about the departure date. When he was asked during the specific interview he persisted: “We are getting ready to come out on 31 October. Come what may,” and added, “Do or die. Come what may.”

But Johnson’s stance is considered rather dangerous as many economists and politicians have argued. Let’s see in more detail, how leaving the EU without a deal will affect the UK economy.

 

What economic impact would a no-deal Brexit have on the UK?

Bank of England governor Mark Carney has rejected Boris Johnson’s claim, as he confirmed that the “UK would be automatically hit by tariffs on exports to the EU.” Earlier this week, Johnson had said that tariffs would not be paid if the UK left the EU without a deal, due to article 24 of the General Agreement on Tariffs and Trade (GATT) which covers the international trade in goods. Clearing the confusion, Carney said to BBC: “Gatt 24 applies if you have an agreement, not if you’ve decided not to have an agreement or have been unable to come to an agreement. Not having an agreement with the EU means that there are tariffs automatically because the Europeans have to apply the same rules to us as they apply to everyone else. If they were to decide not to put in place tariffs they also have to lower their tariffs with the United States, with the rest of the world. And the same would hold for us.”

A no-deal Brexit means that British exports would be hit with import tariffs which are currently around 2-3 percent for non-agricultural goods but are higher for cars and farm products. So, claims by Boris Johnson and other Brexiters saying that Britain could avoid these tariffs under world trade rules, have not only been rejected by the BoE’s Carney, but also trade minister Liam Fox, who also argued that an agreement with the EU would need to be in place.

In the possibility of a no-deal Brexit, Britain will eliminate import tariffs for many products for up to a year, something that would “reduce the inflationary hit to consumers but would expose many British companies to tougher competition.”

In a Reuters article, outlining the effects of a no-deal Brexit, it was pointed out that, based on Bank of England’s estimates, the UK economy could be shocked into a “5 percent contraction within a year, nearly as much as during the global financial crisis.” The same article also noted, that “Britain’s finance ministry says the economy could be 8 percent smaller by 2035 after a no-deal Brexit than if it stayed in the EU. The hit would be bigger if migration slowed sharply.” A no-deal Brexit would deter foreign investors, while Britain’s current account deficit would make Britain depend on, what Carney has called, “the kindness of strangers.”

Finance minister Philip Hammond has warned that a no-deal Brexit would postpone the government’s plans to end austerity, while Brexiters have argued that leaving the EU with no deal would help the public finances as the UK will stop payments into the EU budget.

 

Are you worried by a weak pound?

A no-deal Brexit would probably push the pound down, which will consequently drive inflation down.

If you are a business importing or exporting goods and services to and from the EU, you are possibly worried about an abrupt hard Brexit without a transition deal. Universal Partners FX have all the right international payments and FX hedging solutions for your business, so that you access the international market without any worries. Take advantage of their expertise in foreign exchange and get in touch with Universal Partners FX today.

Holiday home abroad

With Brexit uncertainty and Boris Johnson increasingly looking like the favourite to become the next prime minister, British citizens are concerned about the prospect of buying a property abroad. The EU is now hostile towards the Tory leadership campaign rhetoric which fails to confront the reality of the UK’s position in the negotiations, and opposes any further delay to Brexit. Amidst political and economic instability, the decision to buy your holiday home abroad can create considerable stress, especially when you have not set your finances in order.

There are obviously immense rewards, such as getting resident status or a passport, depending on your nationality or the country you are investing in. There will be carefree days in the sun and cool nights sipping your gin and tonic, as cicadas buzz in the distance. But, first, there will be bills to pay, bank accounts to open and funds to transfer from overseas, so being rational and foreseeing certain obstacles will only help you overcome hurdles easier and efficiently.

 

Knowing the law

Owning your own holiday home abroad can be a dream come true, and one that might possibly come with benefits such as a second citizenship, depending on the investment you make. But knowing early on the restrictions to rules and what comes with owning a specific property could potentially save you a lot of pain. It is always safe to get legal opinion on certain aspects of buying a property, including buying a house without title deeds, which can be a nightmare.

 

Getting a loan and property taxes

Dealing with your finances early on and finding out whether you can get a mortgage in another country is probably a good beginning, if you are trying to get things in order. As a Washington Post article clarifies, “Unless you have enough cash on hand to buy the house, you’ll be requesting a loan from a foreign bank — and it probably won’t be as easy as working with one back home.” For example, foreign banks might lend less of the total value, while there might be the financial burden of additional taxes. According to the Washington Post article, “Regardless of where you buy a home, you’ll likely be on the hook for extra taxes. Spain levies a 10 percent sales tax on real estate….Nonresidents buying in Italy have to pay about a 9 percent tax on the value of the land. On top of that, there can be ongoing property taxes.” Figuring all this out, could save you a lot of time and money.

 

Costs and Renting

From tax bills, utilities and various maintenance costs, you could be paying significant costs that can be offset by the decision to rent your home, which can be potentially profitable. But earning an income, will also be coupled with taxes, and you would need to know in which country you are paying those taxes.

 

Know and secure your rights

Depending on whichever country you are and the laws regarding owning property, many professionals specialising in tax compliance and consulting recommend that your property is listed as part of your estate and that you file a will in both countries of residence. According to certain countries, “if you don’t have a will [your home] could go to the closest relative you have in that country, which may not be where you intended it to go.”

When it comes to buying your future holiday home, you will be considering, for a large part, your financial situation and ways to navigate the complexities of a volatile market and transferring funds abroad. Universal Partners FX can tailor specific solutions to help you transfer large amounts of money internationally. From mitigating the effects of currency volatility, to providing access to the best exchange rates, UPFX can deliver the most optimal prices at the most opportune time.

 

Find out what UPFX can offer you, by talking to one of their experts today.