By tracking everyone who enters and leaves the Schengen area, the system will flag anyone who overstays the 90-day limit, misuses visa-free travel or uses fake identities. Tax authorities will also be able to determine if anyone has been living ‘under the radar’.
All 29 Schengen zone countries are implementing the Entry/Exit System. This includes Iceland, Liechtenstein, Norway and Switzerland, along with all EU members except Cyprus and Ireland.
Thegradual implementation allows countries time to adjust and implement the system, with full operation by April 10, 2026. Many countries started with a couple of major airports and will slowly roll it out to other airports.
If EES applies to you, the first time you pass through a border crossing point with the checks in place, your face and fingerprints will be registered. Passports may still be manually stamped until EES is fully operational.
Your biometric data will be recorded along with your full name, date of birth, etc and the date and place of each entry and exit. Records are kept on file for three years (one year for family members of EU citizens). If no exit has been recorded, the record is kept for five years from the date your authorised stay expired.
Who does EES apply to?
The EES applies to all non-EU nationals visiting the Schengen area for a ‘short stay’, classified as 90 days within any 180-day period. Longer stays are not permitted without the necessary permit or visa.
Who is exempt?
The Entry/Exit System does not apply to nationals of Schengen countries, or Cyprus, Andorra, Monaco and San Marino nationals.
If you hold a legal residence permit or long-stay visa issued by an EU country, the EES does not apply to you. British expatriates living in Portugal with the correct documentation are not subject to the EES controls.
Property ownership alone does not provide an exemption. UK resident nationals owning a holiday home here are fully subject to EES registration and the 90-day limit.
The EES also does not apply to people who are exempt from border checks or who have been granted certain privileges with respect to border checks.
What happens if you overstay?
Non-EU nationals without a legal residence permit are limited to 90 days within any 180-day period, calculated as a single period for all EES countries.
The consequences of overstaying the 90 days depend on that country’s legislation and can include deportation, fines and detention, and/or being prevented from re-entering the EU in future.
What about those without valid residence cards or tax residency?
Expatriates must navigate two types of residence. Failing to comply with either can lead to serious consequences, from deportation to tax investigations, backdated liabilities and penalties.
- Lawful residence – Your legal right, as a national of one country to live and work in another. Ensure your residence permit is up to date.
- Tax residence – The country which has taxing rights over your worldwide income and gains. If you meet the local criteria for tax residency, you are required to register with the tax authorities and submit appropriate returns.
Previously, it may have been easier to live ‘under the radar’ and avoid declaring tax residency, but the landscape has changed significantly. Many countries including Portugal apply the 183-day rule to determine tax residency. If you spend more than six months a year here, or meet other residency criteria, you are obliged to declare your worldwide income and gains.
With the introduction of the Entry/Exit System, authorities now have access to detailed records of non-EU nationals entering and leaving the country. These automatic records make it easier to identify individuals who overstay or fail to meet tax obligations.
What should you do now?
If you’re a British expatriate with valid residence documentation, the new EES rules won’t affect your day-to-day travel.
Anyone without a current residence permit, and/or has not correctly declared themselves for tax, should seek professional advice to regularise their status and avoid escalating consequences. If you own a holiday home or frequently visit Portugal, keep careful track your time in the Schengen zone.
For those considering a move to Portugal, the idea of becoming tax resident can feel daunting – but it doesn’t have to be. With the proper planning, tax residency can improve your financial position. Expert guidance will help you reduce tax on pensions, investments and savings.
Keep up to date on the financial issues that may affect you on the Blevins Franks news page at www.blevinsfranks.com.
This article is based on our understanding of the EU and UK border control rules, and is for general information purposes only. If you need clarity on your position, seek advice from official EU or UK sources. Summarised tax information is based upon our understanding of current laws and practices which may change. Individuals should seek personalised advice.
