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OPINION: Brexit causes yet more money worries for Brits in Spain

Sue Wilson of Bremain in Spain examines concerns over the news that British banks are cutting off customers living in the EU thanks to Brexit.

Published: 28 September 2020 11:40 CEST

OPINION: Brexit causes yet more money worries for Brits in Spain

Photo by Nick Pampoukidis on Unsplash

British citizens across Europe have recently received letters from some of the UK’s biggest banks, advising that their UK-based bank accounts will be closed when the Brexit transition period ends. These closures will apply to credit card and/or current account holders who live in the EU but maintain banking facilities in the UK.

Britain’s largest banking group, Lloyds, started notifying of account closures in August, although not in all EU countries. Lloyds said it had written to customers living in “affected EU countries” to advise it could no longer provide them with “some UK-based banking services”, because of Brexit.

Confusion is increased due to the fact that only some banks are taking this stance, and only in selected EU countries. At present, only Lloyds, Coutts and Barclaycard (not Barclays bank) have notified customers of account closures.

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Recent newspaper coverage, especially in the UK media, has done little to curb customers’ concerns about the issue. Headlines warning that tens of thousands of Brits “would be stripped of their bank accounts and credit cards in weeks” have caused sufficient concern that many customers have contacted their financial providers, regardless of whether they’ve received a letter. The responses they received have hardly been enlightening or reassuring.

It’s understandable that answers are vague. While Brexit negotiations are ongoing, and before any deal between the EU and the UK is reached – if one is reached – then the terms for transferring monies to the EU are an unknown quantity. If the current EU-wide banking rules no longer apply to the UK after December 31st, it would be illegal for UK banks to provide services in the EU without a licence.

If no agreement is reached, banks will decide if it is cost-effective to apply for these licences. That decision will be based on the number of customers in a country, and the level of financial activity. You can, perhaps, draw your own conclusions from the fact that Lloyds has written to 13,000 customers in the Netherlands, Slovakia, Germany, Ireland, Italy and Portugal, and not to customers in Spain and France.

The British Embassy responded quickly to British migrants, updating its website with the following statement: “Most people living in Europe should not see any changes to their banking when the transition period ends (31st December 2020). Whether UK banks can service customers living in an EEA (European Economic Area) country is a matter of local law and regulation. Also banks are set up differently, and may have taken different actions to continue to serve their customers. Your bank or finance provider should contact you if they need to make any changes to your product or the way they provide it. If you have any concerns about whether you might be affected, contact your provider or seek independent financial advice.”

Brits living in Spain maintain British bank accounts for many reasons. Whether it is to facilitate UK travel, for business/income purposes, to mitigate exchange rate costs, or mere habit, any changes would be disruptive.

Last week, banking giant, JP Morgan, announced that it will move its £183billion business from London to Frankfurt due to Brexit. This hardly inspires confidence in the UK’s ability to protect the financial services industry.

This was then followed by the news that the UK’s richest person – Brexit supporter, Sir Jim Ratcliffe – is emigrating to Monaco with his estimated £17.5billion fortune. In the grand scheme of the high-flying financial world, it is unlikely that the banking arrangements of a few thousand Brits in Europe are high on the agenda in Westminster or Canary Wharf.

Photo: AFP

Personally speaking, I bank with Natwest and I have yet to receive a letter. My UK bank account is convenient when I’m travelling but it’s not vital. Using a Spanish credit card in the UK wouldn’t be the end of the world. My British state pension is already paid directly into my Spanish bank account, at a favourable interest rate (relatively speaking).

As a Spanish bank account holder with a regular monthly income, this also enables me to save on Spanish bank charges. Regardless of the negotiations, or the banks’ decisions, receiving my pension directly into my Spanish bank account is unlikely to change.

In the grand scheme of things re Brexit, losing banking privileges isn’t as bad as the loss of other benefits and rights, financial or otherwise. Those in a position to mitigate such losses, will do so. British entrepreneurs are digging deeper into their pockets to retain the benefits of EU citizenship.

So, stop worrying about your UK rental income and exchange rates and head off to Malta, Cyprus or Greece and buy yourself a treat! For a one-off payment of £1million, the Maltese government will welcome you with open arms and all your troubles will be over.

Nothing at all to worry about – it’s only money, right?

By Sue Wilson – Chair of Bremain in Spain

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Good tourist, bad tourist: How to travel responsibly in Spain

Barcelona resident David Mar doesn’t travel, but he thinks about tourism every day.

Tourists crowd the buses — essential for movement in a hilly neighbourhood like his. They leave trash for residents to discover in the morning. They shout and sing at night and wander drunkenly through the residential streets, ambling into backyards and pulling down laundry on clotheslines.

“It’s a disturbance that goes from when you wake up in the morning until you go to bed at night,” he told The Local Spain. “You don’t feel welcome in your own neighbourhood.”

Mar lives in Turó de la Rovira, on a 262-metre hill that towers over the city.

A viewpoint atop the hill called Los Bunkers de Carmel has gone viral on TikTok for its sweeping city views, bringing hordes of tourists to come drink wine, watch the sunset, and sometimes party into the early morning.

But for the residents of the surrounding Carmel neighbourhood — among Barcelona’s poorest — the consequences of this tourist explosion have been severe.

Mar was involved in a physical altercation with a group of four Australians, after he confronted them for tipping over parked motorcycles.

And last June a 76 year-old man was assaulted by a group of seven English-speaking youths after he tried to stop them from jumping a fence that had been put up around the Bunkers.

Such events are commonplace in Carmel, Mar says, with the post-pandemic massification of tourism provoking an unstoppable flow of Instagram-like-hungry travellers, fuelled by an increasingly lucrative industry whose interests often conflict with those of local residents.

“It collides directly with the most basic rights of those who live here,” Mar says. “Our right to housing, our right to transportation, our right to rest peacefully.”

With some 1.3 billion international arrivals globally in 2023, more people are travelling for pleasure than ever before in human history.

But as excessive crowds stress infrastructure and locals find themselves pushed out of their own communities, prevailing attitudes towards travel must be reconsidered if global tourism is to continue growing sustainably.

“Tourism isn’t a right, it’s a decision that you make,” Mar says. “And if you do it, you must be aware of the consequences it can generate.”

A couple uses a selfie stick to take a picture next to a banner warning tourists on drought alert in Catalonia, near Sagrada Familia basilica in Barcelona. (Photo by PAU BARRENA / AFP)

Empathy abroad

Bartolomé Deyá Tortella, a researcher and the Dean of Tourism Faculty at the University of the Balearic Islands, says few tourists consider such consequences.

Instead, they embrace their inner hedonist and focus their vacation time on maximum pleasure for minimum price. This mindset might cause a tourist to forget their values and do things they’d never do at home.

“We all become capitalists when we practice tourism,” Deyá told The Local. “You think, ‘I paid for this, I’m on vacation, I’m having my moment of pleasure, I worked the whole year for it.”

Such thinking could explain why someone might respect quiet hours in their own neighbourhoods, but shout drunkenly in the streets late at night while on vacation.

Or why on a trip to Mallorca, where Deyá lives and works, a tourist might feel compelled to take a 10-minute shower — despite the water-stressed Mediterranean island’s near-drought conditions — while residents routinely shower in a minute or less.

Failure to consider saving water or respecting quiet hours comes down to lack of empathy, Deyá says, and our tendency to other the people whose communities we enter while traveling.

“Act as if you were in your own home,” he says. “If when you’re in your own city you don’t shout in the street because you know your neighbours are sleeping, why do it when you’re traveling?”

Social sustainability

Much has been said about environmental sustainability, but it’s easy to forget the social impacts of travel; how our interactions with local people and economies can change that society.

“When every one of us travels, it implies that the places where we came from are transformed, the places we pass through are transformed, and obviously, so are the places we arrive to,” Manuel de la Calle Vaquero, Vicedean of the Faculty of Commerce and Tourism at Complutense University of Madrid, told The Local Spain.

With this in mind, the most sustainable way to travel is by using one’s presence to positively impact the local community.

Or in other words, to leave a place better than you found it.

“When you jump on a plane, it’s important to make sure that trip counts for something positive,” says Justin Francis, founder of Responsible Travel, a holiday company that collaborates with local partners to plan socially and environmentally sustainable vacations.

“I advise people to fly less, keep short trips flight-free – and, when you do fly, stay in a place longer and travel in a way that does as much good as possible,” Francis says.

Anti-gentrification banners addressing were already hanging from balconies in Barcelona back in 2017. (Photo by Josep LAGO / AFP)

Neighbourhood colonisers

One of the most significant ways in which tourism can alter the social landscape is through accommodation.

Not long ago, tourists and residents in Spain did not typically mix, with tourists sticking near their hotels, rarely straying into residential zones, Deyá says.

But today’s tourist has matured, and now expects novelty; an “authentic” experience that they can convince themselves distinguishes them from the thousands of other tourists expecting the same.

Nowadays they live among residents, in apartments instead of hotels, utilizing short-term rental platforms like Airbnb, which has led to the dissolution of boundaries between a city’s tourist and local zones.

Vaquero describes this new kind of tourist as the “anti-tourism” tourist, in the sense that they’re not interested in the sort of tourism promoted by governments and travel agencies, but instead consider themselves the explorers of new “authentic” destinations outside the typical tourist sphere.

“The one who wants to leave the traditional tourist circuit and supposedly goes looking for ‘authentic’ neighbourhoods — that tourist is obviously the coloniser,” Vaquero says.

The boom in short-term vacation rentals has led to what’s been dubbed the “Airbnb effect” in neighbourhoods worldwide, in which residents are slowly replaced by a constant flux of tourists. For landlords, vacation rentals can be far more lucrative than renting to residents, thus incentivizing them to evict long-term tenants in order to list their properties on Airbnb.

This is exactly what happened to Emanuele Dal Carlo. His landlord didn’t want to renew the lease on his small Venice apartment because they could make more renting it out on Airbnb. Like so many other Venetians, Dal Carlo had to move to the mainland.

To better understand the cultural erosion he saw happening to his city as a result of Airbnb, Dal Carlo enlisted the help of researchers to conduct a study, through which he discovered only 2,000 of the 3,300 Airbnbs in the city were registered with the government, and many were rented by foreign hosts with zero connection to Venice.

This means that much of the money tourists spend on accommodation never lands on the ground, thus eliminating any potential benefit to the local economy.

“What’s wrong is that the money available from tourism is not fairly distributed between workers and residents,” Dal Carlo says.

Dal Carlo now runs Fairbnb, an ethical Airbnb alternative which promotes “community-powered tourism.” Hosts are certified local, and the platform fees are put directly towards a social project in the local community, like food redistribution or sustainable energy initiatives.

As a tourist, the best way to avoid feeding the problem is by avoiding short term rentals when possible, Dal Carlo says, and instead booking accommodations with local businesses, like small independent hotels or traditional bed and breakfasts.

And if you absolutely must use Airbnb, Dal Carlo suggests booking with local hosts.

“If you’re traveling to Venice and your host is from Finland, ask yourself some questions,” he says.

An elderly local man on crutches waits to cross as a group of tourists using Segways squeeze by and into the narrow streets of Barcelona’s Gothic Quarter. (Photo by PAU BARRENA / AFP)

Whose fault?

In Spain, anti-tourism protests have crescendoed in recent weeks. The travel industry, it seems, has grown beyond its means, and locals are taking note.

To some degree, the problem can be traced to poor planning on the part of local governments and the unchecked expansion of algorithmic platforms like Airbnb.

Deyá points out that many government entities in Spain have welcomed tourist money, pursuing marketing campaigns without investing in adequate preparation.

“Tourism is the typical sector where many governments say, ‘ok, let’s leave it, because this works. Don’t touch it,’” Deyá says. “But there’s been no planning, there’s been no strategy.”

Back in Barcelona, the city’s public transport authority was involved in the promotion of the Carmel bunkers through its Bus Turistic webpage, encouraging tourists to come see the “spectacular views over Barcelona.”

The promotion was taken down on April 16th after continued anti-tourism protests from the Turó de la Rovira neighbourhood council, of which Mar is a member.

But as is the case with so many industries in a crowded world full of contradictions, the individual cannot be absolved of all responsibility, as one’s choice to participate in harmful systems enables their continuation.

No law or tourist tax will compel tourists to act with empathy, and the absence of such regulations should not be used to justify one’s bad behaviour abroad.

“The problem is that we’re hypocrites, and we think that it’s someone else who has to solve the problem,” Deyá says.

Mar, who’s never been much of a traveller himself, is no longer interested in traveling internationally after seeing what tourism has done to his city.

“So much of my city has become inhospitable for residents,” he says. “Because we’re truly suffering from it here in Barcelona, the concept of tourism disgusts me more and more.”

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