Brexit risks

The Brexit is a very sensitive issue that will not only affect the Britons living in the United Kingdom but also those who live in Spain and who are considered as non-residents, with notable tax increases, but there are many other risks Brexit, as we are going to review in this article.

What are the risks of Brexit?

One of the main risks is related to British exports to the European Union. These would be subject to the European general tariff that applies to imports from third countries. On average, they tend not to be very high, around 5%, ranging from 7% for consumer products to approximately 3.5% for raw materials, capital goods and intermediate products.

The issue of tariffs is not only related to an increase in price but it would significantly delay the different phases of the production process.

In addition, British extra-EU trade would also be resented given that the United Kingdom would lose the preferential treatment it obtained from the European Union in its main bilateral trade agreements.

With the fall of exports and the transfer of companies to other countries of the European Union, there would be a great loss of local services assigned to British exports as well as a large number of jobs.

On the other hand, given that access to the single market is lost, British exports of services to the European Union (around 40% of the total) would be seriously hindered.

To this, we would have to add many other risks such as the increase of taxes of British non-residents in Spain who have businesses or properties. Therefore, in cases such as these where the information and the consequences of Brexit are so wide, it is advisable to have the advice of a professional in this aspect and have maximum tranquility.

Recommended Posts

Leave a Comment