Brexit for Corporates

Consequences of Brexit for Corporates

The consequences of Brexit for corporates based in Luxembourg depends on the outcome of Parliamentary discussion in the United Kingdom (UK) and on the final vote in UK Parliament, i.e. if the deal negotiated between the UK and the European Union (EU) will finally be accepted or not.

In case of a disorderly Brexit, with significant barriers to trade and movement of people between the EU and the UK, Luxembourg-based corporates will likely face direct costs in case of hard Brexit. They are also likely to be indirectly affected, through the various investment and banking services and products they are currently benefitting from, most notably, market access requirements, conformity assessment or customs formalities.

A disorderly Brexit has as immediate effect that the UK steps out of the internal market and the customs union. The UK thereby becomes a so-called “third country” from an EU perspective. Corporates are then faced with import duties only on goods, as well as with customs procedures such as border controls, import licenses and export declarations.

It is however worth to note that the Brexit procedure in itself will not affect the granting of credit for trading activities with the UK. However, depending on the economic consequences of the Brexit – Euro-Sterling Pound exchange rates, collateral valuation and other risk factors – the conditions for lending may change.

Frequently Asked Questions

You and your trade relations

You and your transactions

Brexit Frequently Asked Questions for Corporates

Additional information

Contact

Gilles WALERS, Legal Adviser – walers@abbl.lu – Tel. +352 46 36 60-1

 

Brexit preparedness for professionals

 

Contact

Association des Banques et Banquiers, Luxembourg

Address

12, Rue Erasme L-1468 Luxembourg

Phone Fax
Opening hours

Monday to Friday from 8:00 to 17:30.