Now that summer is almost over, it won’t be long before Brexit is underway. Due to take place on October 31st, there’s still a surprising level of uncertainty surrounding what will happen. This is a particular worry for foreign investors in the UK.
So, how might Brexit affect foreign investors? Here, we’ll look at some of the ways they could be affected.
Existing foreign investors may need a visa
Once Brexit does kick in, it may affect the citizenship of existing foreign investors. Therefore, it’s best for investors to apply for a visa or citizenship now in preparation for the new regulations. Seeking advice and help from professionals such as Withers, will ensure you can get a valid passport in time for the new changes.
It’s best for foreign investors to find out everything they can about how Brexit will affect their rights within the UK.
How will Brexit affect new investments?
The main concern over Brexit is whether it will impact new investments. Already, major brands across the globe have pulled out of developments and investment within the UK. A recent survey has revealed that 15% of investors had stopped projects within the UK in the leadup to Brexit. An additional 5% had decided to lower their investment in respect of Brexit.
The capital is still managing to attract a healthy level of investors, with other regions being hit the hardest. For example, investments within London have fallen by 0.2% while in the majority of other regions, it’s fallen by 10%.
It is undoubtedly the uncertainty investors are facing at the moment that is putting them off making new investments. Only time will tell whether Brexit does have a significant impact on foreign investments. With no deal Brexit looking ever more likely, it’s expected that investors won’t bring new capital into the country until they see how it plays out.
The government needs to provide assurance to investors
One of the key things the government needs to do in order to continue attracting foreign investors, is make it clear how it will affect them. There needs to be some assurance of how investments will work during and after Brexit. At the moment that’s difficult for the government to provide as they simply don’t know how Brexit will turn out.
Overall, Brexit has already had some impact on foreign investments. However, at the moment the fall out has been relatively minor. If the UK wants to continue its lucrative relationship with investors, it’s going to need to find a way to assure them Brexit won’t damage the economy. With the likelihood of a no deal Brexit going ahead, there is understandably a lot of fear over whether the economy can handle this scenario.