No-deal BREXIT. Immigration and social security perspective for UK citizens in Romania

Article written by Monica Marin, Tax Assistant MAnager at Mazars Romania.

The BREXIT may affect the right of free movement from and to the UK, having a major impact on the immigration process.

Immigration

For the time being, UK citizens residing in Romania need to apply for a Registration Certificate. The process should be smooth, as it is envisaged that issuance is performed on the same day.

This simplified and speedy procedure aims to safeguard the rights of the British citizens living in Romania at the moment of BREXIT, even though a no-deal scenario occurs[1] .

It is intended that British citizens (with Romanian residence obtained prior to the date of UK`s withdrawal from the EU) to have a transitional period until 31 December 2019 for keeping their residence and working rights in Romania on the basis of the Registration Certificate[2] .

For British citizens who arrive in Romania after BREXIT, the immigration process applicable to the non-EU citizens will apply and a Residence Permit should be obtained. The immigration process is more complex and can last for 4-5 months, considering the documents to be obtained before issuing the residence permit (i.e. recognition of study, work permit, visa).

 

For information purposes on the transitional measures and new procedures/documentation, Romanian Immigration Authorities intend to organize national campaigns through central and local media aimed at British citizens in Romania.

Social Security Contributions

If the UK will leave the EU on a no-deal basis, individuals assigned from the UK to Romania and vice versa will be subject to social security contributions in both countries.

 

Based on recent guidance published[3] , the UK Government is working to protect the UK nationals in case of a no-deal scenario by reaching reciprocal arrangements with EU countries (including Romania) in order to maintain existing social security provisions for a transitional period until 31 December 2020.

Individuals in scope of these arrangements will only pay social security contributions in one country at a time. The employers should contact the authorities of the EU country where the individual is assigned in order to obtain guidance on whether the impacted employees should pay social security contributions into that country’s social security system.

 

In this instance, if a transitional period until 31 December 2020 will apply, UK citizens assigned to Romania will continue to pay social security contributions only in the UK until 31 December 2020 and are exempt in Romania.

After this date, if no reciprocal agreement will be concluded, the individuals will pay social security contributions in both countries.

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