As a British expat living in mainland Europe, I’ve experienced first-hand how even subtle shifts in the UK-EU relationship can impact everything, from travel to business, investments, taxes, and long-term financial planning. While the media often focuses on political negotiations, the real-world implications for everyday expats are significant.
The latest UK-EU deals are no exception, so I’m here to break down what’s changing, why it matters, and what steps British expats should take in response.
The EU’s Entry/Exit System (EES) is set to go live in October 2025, aimed at streamlining travel for third-country nationals, including UK citizens. This system will replace manual passport stamping with biometric tracking and digital registration, aiming to make border checks faster and more efficient. While UK citizens currently face longer waits at Schengen-area borders, the EES could speed things up once fully implemented.
There’s also momentum behind allowing UK travellers to use the EU’s biometric e-gates, a convenience already offered to some non-EU nationals. However, the rollout will vary across member states, and not all airports or hubs may offer this service initially. For frequent travellers, these changes could save valuable time once fully rolled out.
It’s important to monitor the rollout of the EES and check the eligibility requirements for your frequent travel routes. Keeping your travel documents updated will ensure you’re ready for the new system, and you should also stay informed about any early registration opportunities. If you hold multiple residencies or travel frequently, it’s worth considering how these changes might impact your visa or long-stay applications.
A technical but meaningful change in the UK-EU trade deal is the reduction of barriers for certain goods, particularly animal, plant, and other regulated products. Routine checks and paperwork have been relaxed, benefiting businesses involved in cross-border logistics, particularly small and medium-sized enterprises.
For British expats running businesses or investing in UK-EU trade, this change could reduce delays, lower costs, and improve the overall efficiency of the supply chain. While the changes are sector-specific, they signal a broader effort to simplify trade operations between the two regions.
If you run a business, particularly in cross-border e-commerce or retail, it's essential to check whether your sector benefits from these updates. Additionally, investors should keep an eye out for potential performance improvements in companies that rely on UK-EU distribution or agricultural trade.
Though not directly tied to everyday expat life, the extension of EU fishing access to UK waters until 2038 is a key component of the broader deal. This is particularly relevant for those involved in the seafood, food, or logistics sectors. By providing greater market continuity, it reduces economic volatility for UK seafood exporters and strengthens market access to the EU.
If you hold investments or pension funds tied to agriculture, fishing, or food exports, it's important to monitor how the market responds to these changes. For those involved in sustainable or ESG investing, the fishing access agreement may affect environmental reporting and influence supply chain practices.
One of the most significant changes affecting personal finances is the shift in how Inheritance Tax (IHT) is assessed. Starting in April 2025, the UK will determine IHT liability based on residence rather than domicile. This means that if you’ve been a UK resident for at least 10 of the last 20 years, your worldwide assets could be subject to IHT, even if you’ve established residence abroad or consider yourself non-domiciled.
Additionally, the cap on Agricultural Property Relief (APR) and Business Property Relief (BPR) has been set at £1 million. Anything above this limit will be taxed at 20%, which could significantly affect estates with agricultural land or business assets in the UK.
Review your UK residency status to determine if you're within the 10/20-year window. For cross-border assets, consider restructuring ownership or using compliant tax wrappers. It's also essential to update your wills and estate planning documents to reflect the new thresholds and relief caps. Finally, consult a financial planner to understand how UK IHT interacts with the local succession laws in your country of residence.
While the UK-EU relationship seems to be moving into a more stable phase, these agreements introduce both predictability and complexity. For British expats, this means more certainty on some fronts, but also new layers of complexity that require proactive planning.
• Clarify your UK residency status to understand how the new IHT rules affect you
• Revisit travel strategies as systems like EES roll out
• Explore business or investment opportunities in sectors benefiting from reduced red tape
• Update estate plans and tax structures to stay compliant and efficient across jurisdictions
• Seek professional advice; negotiating cross-border regulation without expert guidance is risky and costly
At Skybound Wealth, we specialise in helping British expats build tax-efficient, internationally compliant financial plans. Whether you’re impacted by these policy changes or just want to stay ahead, we’re here to support you with tailored strategies and global expertise.
Reach out today to schedule a review and ensure your financial future is aligned with the evolving UK-EU landscape.
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