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Commission official: ‘Up to Sweden how strict it is on Brexit applications’

An official from the European Commission has defended its decision not to take action on Sweden's strict treatment of late applications for post-Brexit residency, arguing that it is up to member states how to apply the Withdrawal Agreement.

Published: 15 July 2024 10:14 CEST

Commission official: 'Up to Sweden how strict it is on Brexit applications'

An EU flag flies in front of the UK Houses of Parliament. Photo: Justin Tallis/AFP

In an email sent to The Local, the official confirmed the latest data, published at the end of last year, which showed that 22 percent of residence applications from UK nationals under the Withdrawal Agreement had not been successful in Sweden. The official said this was similar to the rejection rate for Swedish citizens’ applications in the UK.

“Through its regular monitoring in Annual reports under Article 159(2) of the Withdrawal Agreement, the European Commission is aware of the fact that Sweden has a high rate of refusal of residence applications under Article 18(1) of the Withdrawal Agreement,” the official said.

But they said that this in itself did not indicate that Sweden was failing to apply the UK Withdrawal Agreement correctly.

“As long as there is no indication that a Member State in question is incorrectly applying the Withdrawal Agreement rules, it is not for the Commission to tell Member States how strict or lenient they should be when processing late applications,” the Commission official said.

Two EU lawyers The Local spoke to earlier this summer said that they believed that the Swedish Migration Agency had not been correctly applying the proportionality test to late applications, and had been too narrow in its interpretation of what constitutes “reasonable grounds” for a late application.

They also said that they believed the Migration Agency had been overly strict on what level of employment or savings UK citizens were required to have to qualify as resident in Sweden under EU law, and to therefore be qualified for post-Brexit residency.

SEE MORE: Why did Sweden reject Brits for post-Brexit residency?

But the Commission official said that when it came to the late applications at least, Sweden was entitled to take the position it had done.

“If the host State authorities reach the conclusion that a late applicant did not have reasonable grounds for missing the application deadline, they do not have to deal with the application on substance,” the official said.

“This means that someone who would have qualified for the residence rights under the Withdrawal Agreement might not be granted those rights if they missed the application deadline and did not have a valid reason for doing so.”

An unusual high rejection rate, the official continued, did not mean that Sweden was breaking the terms of the EU Withdrawal agreement.

“The fact that there are negative decisions being taken by Member States under Article 18 of the Withdrawal Agreement (WA) does not, in itself, indicate that those Member States apply the Withdrawal Agreement incorrectly,” they said.

The Migration Agency had carried out a review of refusals, they said, checking a selection for “legal quality”, something The Local has previously reported on.

The Commission had received the Migration Agency’s review, they said, but had yet to complete its analysis of the findings.

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Swedish Migration Agency: Entrepreneur's 35,000 kronor salary 'too low' for work permit

At 32, Hazem Ashour is a celebrated entrepreneur in Sweden, having been honoured in 2021 by King Carl XVI Gustaf for his contributions to the tech industry.

Ashour, originally from Egypt, co-founded Hemavi, a platform that helps exchange students find housing in Sweden, during his studies at Lund University in 2020.

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How you can get a faster decision from Sweden’s Migration Agency

The company quickly grew, attracting tens of thousands of users and securing over ten million kronor in investments.

Yet, despite his successful track record, Ashour is now embroiled in a fight to remain in the country he has come to call home.

Hemavi: A successful business story

Hemavi was founded on October 15th, 2020, by Ashour and his business partner and has since become a respected player in the international relocation industry.

As Ashour told The Local after regional newspaper Sydsvenskan first reported his story, the company was created with the aim of transforming the experience for international students and young professionals moving across borders.

“We wanted to provide them with safe housing, friends with similar interests, and administrative support in their new country,” Ashour said.

The company’s journey began with a strong start.

In November 2020, just a month after its founding, Hemavi secured its first investment of 615,000 kronor.

By December of the same year, Ashour had signed his first employment agreement with Hemavi and submitted a work permit application to the Swedish Migration Agency, after taking on the role of CEO.

Hemavi’s growth accelerated in June 2021 when the company raised an additional 4,050,000 kronor.

This influx of capital allowed Hemavi to expand its team and begin the development of its core tech platform.

As the company scaled, Ashour’s salary was adjusted to 30,000 kronor, reflecting the increased demands of his role.

In November 2021, Ashour’s entrepreneurial efforts were recognised when he was awarded the HMK Kung Carl XVI Gustafs pris Årets Nybyggare (“settler of the year”), honouring him as one of southern Sweden’s top foreign entrepreneurs.

The year 2023 marked a significant turning point for Hemavi.

The company transitioned from offering free services to generating revenue, earning 890,000 kronor for the first time.

This success was bolstered by a new investment of 3,000,000 kronor in October 2023.

As Hemavi prepared to expand geographically, particularly with its planned launch in Copenhagen, Ashour’s salary was increased to 35,000 kronor in November 2023, then to 42,000 kronor in December 2023.

In 2024, the company continued to expand, successfully launching in Copenhagen and achieving a growth rate of 2.5 times year over year. Hemavi also secured a pilot programme with one of Japan’s largest real estate conglomerates, enabling it to list thousands of properties in Tokyo for expats, Ashour told The Local.

Hazem Ashour

Hazem Ashour, photographed in his office, in August 2024. Courtesy of: Hazem Ashour

At risk of deportation

The initial success convinced Ashour to stay in Sweden and apply for a work permit in late 2020. However, several years later, he finds himself at risk of deportation.

After nearly three years of waiting, the Swedish Migration Agency rejected his application in December 2023, citing that his salary as CEO was too low compared to industry standards.

This decision came at a time when Ashour had been unable to leave Sweden for almost three years due to the pending status of his application.

In November 2023, Ashour was earning 35,000 kronor per month – just below the agency’s benchmark of 40,000 kronor for CEOs. Sweden’s minimum salary threshold for work permits currently stands at 28,480 kronor, but salaries should also be in line with industry standards, meaning the threshold is higher for some professions.

Although he raised his salary to 42,000 kronor before the agency made its final decision, the increase wasn’t considered in its ruling.

Ashour, who says he had deliberately taken a lower salary to reinvest in his company, appealed the decision – with success. His appeal led to the annulment of the initial ruling, and the Swedish Migration Agency is now re-examining his case.

“The court has annulled the Migration Agency’s decision that my salary is insufficient and referred the case back to the Migration Agency for further processing. The court has ruled that I have presented evidence in the form of, among other things, employment contracts, pay slips, and transaction receipts,” Ashour said.

“The documents show that I have received the stated salary of 42,000 kronor since December 2023,” he added.

Despite this, Ashour noted, “the Migration Agency ignored this evidence in their decision and our first and second appeal.”

READ ALSO:

Is Sweden losing the European race to attract highly skilled foreigners?

Ashour’s case also involved a disputed claim by the Migration Agency, which stated that they had sent him a letter on August 31st, 2023, informing him that the lowest market salary for his profession was 39,000 kronor and offering him an opportunity to respond

However, Ashour clarified, “I informed them during my interview in my appeal that this is incorrect, and I have never received such a letter.”

The Migration Court found that case documents showed returned envelopes received by the Migration Agency on September 21st, 2023, contradicting their claim that the letter had been successfully sent.

A ‘super frustrating’ process

Ashour has been unable to travel to meet with international investors or visit his family for nearly four years, leaving him in limbo.

The prolonged process has significantly affected his personal and professional life.

In an email to The Local, Ashour conveyed deep frustration with the lengthy and challenging work permit process he has faced.

“Of course, it’s super frustrating! I don’t think words can properly describe how this whole process feels,” he said, highlighting the emotional toll it has taken on him.

“It took me, an entrepreneur recognised by the king and running a tech company valued at 40 million kroner, over three years, countless unanswered phone calls and emails to the Migration Agency, and an appeal to the migration court just to get my salary approved – something that should have been straightforward from the start.

“I moved to Sweden almost six years ago, completed my studies, and built a company that employs people, pays taxes, and provides a service that people appreciate. Yet, in return, I’m being treated like a criminal. It just doesn’t feel right!” he said, adding that his personal life has largely influenced his decision to stay in Sweden.

“If I didn’t have a girlfriend here, I would have probably moved the company somewhere else by now,” Ashour said.

Despite the recent victory in court, he remains concerned.

“It’s worth mentioning that this is not the end of it. The Migration Court sent the case back to the Migration Agency to review the rest of the components of my employment conditions, such as the insurance, vacation days, and others,” he said.

“Let’s hope it doesn’t take the Migration Agency another three years to do that.”

Proposed changes to Sweden’s immigration policies

As Ashour awaits the outcome of his case, Sweden is also reviewing its broader immigration policies.

READ MORE:

What’s the current status of Sweden’s planned migration laws?

Proposed changes include a wage requirement for work permits that matches 100 percent of the median wage in Sweden.

However, the proposals also suggest that certain occupations might be exempt from these new rules, with any changes expected to take effect in June 2025.