CONTINGENCY MEASURES FOR THE EVENT OF THE UNITED KINGDOM LEAVING THE EUROPEAN UNION WITHOUT A DEAL – PORTUGAL –

FACTS

  • Portugal have been adopting several measures to mitigate the negative effects of a no-deal Brexit scenario.
  • On 28 March 2019, Portugal approved contingency measures to apply in the event of a withdrawal without a deal, covering a number of measures to safeguard the interests of citizens and companies – Law no. 27-A/2019.
  • More recently, Portugal approved a further package of contingency measures to be applied on financial services and social security matters, in the event of the United Kingdom leaves the European Union without a deal – Decree-Law no 147/2019, of 30 September.

 

LAW NO. 27-A/2019

Rights of residence:

British nationals and their family members residing in Portugal:

  • Will be considered residents, being subject to the rights and obligations provided in Law no. 37/2006, of 9 August 2006.
  • Must submit the request for the issuance of a residence title until 31 December 2020.

Electoral and political rights:

Current terms of British nationals that were elected for bodies of local authorities:

  • Safeguarded until the term of office.

Higher education:

British nationals and their family members enrolled in Portuguese universities, as well as those that enroll until 31 December 2020, will not be considered as international students until the end of the relevant study cycle.

Driving licences:

British nationals and their family members must exchange their driving licences until 31 December 2020.

Social security:

Right to the benefits provided in Regulation (EC) 883/2004 invoked by a person having fulfilled the insurance period in the United Kingdom:

  • insurance periods fulfilled in a mandatory social security scheme in the UK are accounted for until the date of withdrawal;
  • the relevant periods and benefits are calculated pursuant to the applicable EU law rules.

Professional activities:

British nationals authorized to practice, for a certain period, a professional activity:

  • Maintain such right.

British nationals that practice in Portugal a professional activity in accordance with the applicable law:

  • Maintain the right to the recognition of professional qualifications.

Health:

British nationals residing in Portugal:

  • Will continue to be beneficiaries of the Portuguese National Health Service.

British nationals staying temporarily in Portugal:

  • Until 31 December 2020, retain the right to receive healthcare services within the framework of the Portuguese National Health Service.

 

DECREE LAW NO. 147/2019

The notification process for UK credit institutions, investment firms or management entities:

UK credit institutions, investment firms or management entities authorised to provide investment services and/or investment activities, as well as ancillary services, or management services in relation to investment funds, will be able to continue to do so until 31 December, 2020, provided that:

  • Prior to the Brexit date, Portuguese Securities Market Commission (CMVM), in case of investment firms and management entities, and Banco de Portugal, in case of credit institutions, receives a notification from the UK competent authority, regarding the provision of such services in Portugal; and
  • no later than 3 months after the Brexit date, CMVM receives from the UK relevant institution an application, containing certain information set out in the Annex I or Annex II of Decree-Law no 147/2019, also indicating if it (i) wishes to terminate any existing agreements or (ii) apply for an authorisation to operate in Portugal.

If the UK relevant institution choses to request for an authorisation to operate in Portugal, such request must be submitted no later than 6 months after the Brexit date.

Until the submission of the application for an authorisation, the actions carried out by the UK relevant institution under agreements concluded with non-professional investors must be limited to those required to terminate such agreements.

The notification process for UK investment Funds:

UK investment funds authorised to market their units in Portugal will be able to continue to do so until 31 December, 2020, provided that:

  • CMVM receives, prior to the Brexit date, a notification from the UK competent authority regarding the marketing of the Fund in Portugal and,
  • Within 3 months after UK leaves the EU, CMVM receives from UK investment funds a form attached to Decree-Law no 147/2019 (Annex III).

Contributing Advisors