Brexit: what next, and how does it affect Brits in Malta?

After deciding to leave the EU, Britain may be able to negotiate access to the European Common Market and obtain a similar status to the one enjoyed by Norway. But once Britain invokes Article 50, which establishes the procedures for a member state to withdraw from the EU, it will have a two-year window in which to negotiate a new treaty to replace the terms of membership.

The two parties would have to iron out key issues such trade tariffs, migration, and the regulation of everything from cars to agriculture.

Britain could also negotiate a new treaty with the EU that continues to allow free movement between the UK and the EU, but anti-immigrant sentiment was a key force behind Brexit. 

A British government possibly led by Leave leader Boris Johnson will be under immense pressure to refuse to continue the current arrangement.

What does it mean for Maltese in the UK and Brits in Malta?

It’s very unlikely that EU citizens already living in the UK and Brits already residing in other EU countries will be sent back to their country of origin. 

But it could become substantially more difficult for EU citizens to move to the UK and vice versa.

British expats and EU nationals in the UK could face new administrative arrangements, including residency and work permits and higher property taxes in their country of residence. 

There’s an increasing sense of uncertainty among the 27,000 Maltese-born people who work and study in the UK, with all EU citizens living across the channel fearing they could end up losing the right to work in the UK – in which case they would have to apply for work permits or visas. 

The UK already has a points-based system for non-EU citizens who apply to live and work there and this could be extended to EU citizens.

Maltese students in the UK are also facing uncertainty. Currently, some 125,000 EU citizens pay the same tuition fees as their British classmates, while non-EU students pay up to three times as much. 

Brexit could see tuition fees of EU nationals increase significantly if British universities feel no longer bound by the EU’s non-discriminatory rule. However, everything depends on the agreements that the UK enters into with the EU and with individual member states. 

The confusion among Maltese people in the UK is understandable, as during the campaign the opposing camps said very different things. 

Vote Leave gave unequivocal assurances that any new immigration system would not affect EU citizens already living in the country, assuring that they would “automatically be granted indefinite leave to remain in the UK and will be treated no less favourably than they are at present.”

But equally unequivocal was the Remain camp, which warned that EU citizens would lose their automatic right to move and work in the UK. 

“This means that living and working in the UK would be significantly more difficult after a leave vote for EU citizens, and is likely to involve restrictions and barriers in the form of permits, visas or other costs and bureaucracy,” the Remain camp said. 

British expats 

Many British expats living in Malta own property and their right to hold on to it will very likely remain untouched. The main bone of contention is whether there will be any changes to inheritance and tax laws. Yet, these will depend on any bilateral agreements the UK enters into with Malta or the EU.  

If the pound remains weak many expats may use the opportunity to sell and re-enter the British property market. But British nationals who live here and who rely on UK revenues such as pensions will be affected by currency swings. 

British expats in Malta, who number around 5,000, could continue enjoying “acquired rights” but these might be limited to residency and property rights. 

This could see British expats lose their access to benefits, pensions and healthcare in their country of residence.

New arrivals could also face stricter residency requirements, particularly if Britain imposes similar criteria on incoming EU nationals but once again this depends on the agreement the UK and the EU will strike in what is being viewed as an express divorce. 

Working in the EU could become more difficult for the 1.5 million British expats. In Malta, non-EU citizens need an employment licence in order to be able to work, while EU nationals, European Economic Area and Swiss nationals do not require a licence.

Tourism

With the peak travel season about to begin, millions of British holidaymakers and traditional destination countries, including Malta, are set to discover the immediate effects of Brexit. 

British tourists made up 30% of the 1.8 million visitors who came to Malta last year, contributing just under €0.5 billion to our economy. 

With Britain already excluded from the Schengen agreement, British tourists will still have to show their passport upon arriving in Malta but the slide of the pound to its lowest level for years means the price of a beer in Valletta to a night in a luxury hotel in St Julian’s will rise for British tourists. 

Unless the pound recovers quickly, this could lead to British tourists to head elsewhere or holiday within the UK and Maltese hoteliers and businesses are concerned about the consequences of the Leave vote. 

Malta Hotels and Restaurants Association president Tony Zahra said “a weaker sterling will get less euro for its pounds, so it will be more expensive for the British traveller to holiday outside UK. But it’s more complicated than that, especially in terms of British holidaymakers’ behaviour. Experience has demonstrated that demand for overseas travel by the British traveller is price sensitive.”

Moreover, changes to the freedom of the skies could impinge on tourism and airlines including Air Malta.  Since 1994, any EU airline has been free to fly between any two points in Europe.

If the UK negotiates an arrangement similar to Norway’s, within the European Economic Area (EEA), then little would change but if it doesn’t every route between the UK and the EU might need to be renegotiated on a bilateral basis. 

But given that London is the world hub of aviation, and a key destination for the major airlines, including Air Malta, it looks unlikely that routes to and from the UK will be affected.

However, low-cost airlines could be affected as the freedom for British airlines such as easyJet to fly to and from EU countries could be curtailed by member states, who will prioritise national carriers over British based low-cost airlines.