The No Deal Checklist

As you are probably well aware, I am part of the group British in Italy which was set up to campaign to protect the rights of British citizens in Italy post Brexit. I am very proud to say that one of the members of this group has put together a very comprehensive list (non-exhaustive) of things that you may need to do to prepare for a No Deal Brexit scenario, which after today's meeting in Brussels, seems to be becoming an ever-closer reality. 

Whilst, I myself, live in the hope that some kind of 'fudge' deal will be agreed in the closing minutes of March 29th 2019 we are closing in on a near terminal situation where a No Deal scenario may all be but an inevitability. 

 

With this in mind I thought it would be a good idea to re-circulate this list to you. You may have already seen it if you are on the British in Italy mailing list or seen our website, but in the case that you are not party to either, here is your 'almost definitive' list of things to do to prepare for a NO Deal Brexit scenario courtesy of British in Italy. 

1. MAKE SURE YOU ARE LEGALLY RESIDENT IN ITALY UNDER CURRENT RULES.

That means you should:

• Apply for residenza and a Carta d’Identità under the current rules (register at the Anagrafe office of your local comune – you will need evidence of a specified minimum level of financial income/support (you need to ask your comune what is acceptable evidence; some accept a letter from your Italian bank manager stating that you have the specified amount or more), and if  you are not working, private health insurance or an S1 (which you obtain from the UK if a pensioner). This will evidence your legal residence in Italy and give you proof that you were legally resident on 29 March 2019. This may be like gold dust in the case of a no deal exit, and if there is a Withdrawal Agreement it will help you benefit from a streamlined process to receive a new card if necessary under post-Brexit rule.  

• Years of living in Italy do not necessarily count – only legal residence. So if you have been living ‘under the radar’ so-to-speak, try to rectify the situation in advance of 29th March 2019.  

• Apply for a soggiorno permanente (‘permanent residence’) under existing EU provisions if you have been legally resident for at least 5 years. It is the best evidence that most of us can have of our long-standing residence in Italy.  

• Make sure that you’ve submitted tax returns in Italy. As a resident, (whether in the first 5 years or afterwards with soggiorno permanente, you are required to submit tax returns and pay tax in Italy on your global assets, income and gains even if all of them originate from the UK).  

• Make sure that you either have private health insurance (obligatory for the first 5 years of residence unless you have an S1 from the UK or are working ), or that you’re registered in the Italian health system (e.g. you already have a soggiorno permanente under existing EU provisions).

2. CREATE, AND KEEP UP TO DATE, A DOSSIER, AS IF YOU ARE APPLYING FOR RESIDENZA OR SOGGIORNO PERMANENTE OR CITTADINANZA ITALIANA, IN PARTICULAR:

• Collate copies of as many of your tax returns as you can get – tax returns (Modello Unico), the F24’s (proof of payment) and proof of receipt. The more recent ones you can download and print out from within your account at Fisconline, the Agenzia dell’ Entrate website for tax returns, payments etc. You may need them to prove the length of your legal residence, and they will be needed in any event if you are applying for citizenship.  

• Put together a file of utility bills for at least 10 years if you can. This will prove your continued residence.  

• If your name is not on the bills (bollette di gas, acqua, elettricità etc)) for your household, or on any utility bills, get it added now.  

• For women in particular: make sure that the name on bills, bank statements, pension statements, payslips etc matches the name on your passport if possible.  

• Put together a file of bank statements, wage slips and/or pension statements for the last 5 years if you’ve lived here that long. Longer is even better – 10 years is best. You may need these to prove the stability and sufficiency of your resources.

3. CHECK YOUR PASSPORT

• Make sure your passport will be valid for several months after 29 March 2019. If not, consider renewing it early.

4. MAKE SURE YOU ARE IN ITALY ON MARCH 29TH AND MARCH 30TH 2019

• This is probably not the best time to make a family visit to the UK! Transport could be chaotic, with no agreements on air or other travel between the UK and EU.  

• If you can’t be in Italy, try to be somewhere in the Schengen zone.  

• Be aware that at least initially, if not longer, there may be difficulties crossing any Schengen or other border with a British passport! There is a possibility that you could be refused entry back into Italy unless you have a visa.

5. TOP UP YOUR MEDICATION

• If you currently rely on an S1 form for access to the Italian health service and/or you need regular medication, think about making sure you have a good supply of it on 29 March 2019. 

• If the worst happens and the reciprocal health care system stops on that date it might take several weeks to get an alternative system up and running and there may be short term chaos. Making sure that you have the permitted 3 months of long-term medication would mean that you’d avoid having to pay full whack for your meds or being without a family doctor while the situation was resolved.

6. CHECK YOUR DRIVING LICENCE

• If you’re still using a UK driving licence, apply for an Italian licence now. It’s relatively straightforward and for most people, it can be exchanged (with some fees and a medical) without having to take a full Italian driving test (theory and practical). It’s possible that UK licences will not be valid in the EU in the case of a no deal Brexit.  

• Consider applying for an International Driving Permit if you regularly drive in the UK.

7. THINK ABOUT MOVING MONEY

• If you have bank accounts, savings or investments in the UK, consider moving them to Italy or into Italian compliant vehicles, or some other EU jurisdiction now. Sterling may drop suddenly in the case of a no deal exit; there may also be temporary problems moving money in and out of the EU.

8. TRY TO HAVE A FINANCIAL BACKSTOP

• If at all possible, try and make sure you have access to enough cash to see you through two or three months, especially if your income comes from the UK and is transferred monthly.

9. CONSIDER YOUR PERSONAL PENSION

• If you have a personal pension (not state or public service occupational) and have not yet retired, think seriously about cashing it in if you’re old enough (take financial advice on the tax implications of cashing it in before doing so), or transferring it. A detailed pension analysis would be required to look at the suitability of doing so but it might just be possible to remove your pension from future UK political and tax problems as a result of No Deal Brexit scenario. There may be issues with passporting rights after Brexit that could cause problems with insurers making payments to those living outside the UK.

10. LOOK AT WAYS YOU CAN MAXIMISE YOUR INCOME AND MINIMISE YOUR EXPENSES

• This applies particularly if the bulk of your income is in sterling, which may take a serious hit after a no deal exit. Can you survive if sterling hits parity? Goes below parity? What’s your bottom line? What can you do to turn your income into euro income?  

• Create a personal financial contingency plan. Look at ways you can cut your spending temporarily, and at ways you could create additional income.  

• Get any potentially expensive dental or optical work done now.

11. IF YOU HAVE A BUSINESS THAT RELIES ON ATTRACTING PEOPLE FROM THE UK...

• Can you change your client demographic? Whatever the deal or no deal, British people may limit their travel to the EU next year and you may need to find new clients if you’re to survive financially. Make sure you have a website in the language of the nationality of people you may wish to attract, if you haven’t already, and that you begin to advertise NOW to attract other customers.  

• But … 

• If there is a no-deal Brexit, it is uncertain as to whether you will be able to continue to run a business at all.  

• Even if there is a deal, you may not be able to provide services to customers in other Member States: that is still to be decided.

12. PUT SOME WORK INTO LEARNING ITALIAN

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• Whether there is a deal or not, we may be required to re-apply for residenza and/or soggiorno permanente.  

• We do not know whether a minimum level of Italian language ability will be required (to date it has not been – although it is for extra-comunitari), but it is a good opportunity to work on the language skills – e.g. local Italian classes are offered by some ‘comune’ free of charge, or take a 1 month or 3 month course at a University.

13. THINK ABOUT, OR RE-THINK ABOUT, APPLYING FOR ITALIAN CITIZENSHIP

• For many people, their British identity and nationality is important to them and the idea of taking out Italian citizenship has been regarded as ‘only as a last resort’. For some of us a no deal Brexit might be that ‘last resort’. Italian citizenship won’t guarantee all the rights you currently hold as an EU citizen (mutual recognition of professional qualifications, for example) but it will guarantee you the right to reside and to work – and as an EU citizen you’d continue to benefit from full free movement rights.  

• It you are thinking of applying for Italian citizenship, try to ensure your application is lodged before 29 March 2019. The Italian authorities have recently changed the processing time up to 4 years (previously 2) for new applications and there is no guarantee that applications in progress will continue to be processed after 29 March 2019.  In addition, language tests may now be required (see point 13) and proof of tax declaration (see point 1).  But if you’ve already made the application, there is more chance than if you wait till after 29 March when all the rules may change.  

• Be aware that taking out Italian citizenship may affect the taxation of certain pensions and you should take good financial advice before applying.

14. MARRY AN ITALIAN

• This isn't the easy step it once was with the new Decreto on immigration but it might be a solution for you, especially where children are involved. 

14A. GET YOUR PROFESSIONAL QUALIFICATIONS RECOGNISED NOW

• The European Commission has said that, whatever the outcome of the negotiations, Brexit does not affect decisions made pre-Brexit by EU27 countries recognising UK qualifications under the general EU directive on the recognition of professional qualifications (Directive 2005/36/EC). For details of which qualifications are covered see
• https://ec.europa.eu/growth/single-market/services/free-movement-professionals/qualificationsrecognition_en
• So if you have a UK qualification covered by that Directive and you need to be able to use it, apply to get it recognised before March 30th 2019.

15. ABOVE ALL...DON'T PANIC. 

• This is about hoping (and working) for the best, while preparing for the worst. Whatever happens you won’t be alone.

And there you have it. There isn't a better list anywhere about what to do in a NO Deal Scenario.  I would like to say that I think that some kind of deal/arrangement will be agreed in the end because there is too much at stake on both sides of the Brexit divide, BUT I have to admit that I was wrong about Brexit happening in the first place and also about the election of Donald Trump as US president. I was convinced neither would happen. This time I am taking precautions and implementing most of the items on this list. I hope you do too.