Help! There Are No QROPS Providers Where I Live

Don’t worry if you are an expat wanting to transfer your UK pensions to a Qualifying Recognised Overseas Pension Scheme (QROPS) but the country where you live has no provider.

To be fair, the problem applies to around one in four countries as QROPS pension providers are based in 42 different places out of around 200 countries worldwide.

So you are not alone.

Any international IFA worth their salt can easily solve the problem.

Several QROPS centres offer ‘third party’ pensions to expats.

These QROPS let expats live anywhere in the world except for the UK while keeping their pension based in one ‘home’ financial centre.

Typically, these QROPS are based in somewhere like Malta, Gibraltar and the Isle of Man.

How third party QROPS work

The benefit to an expat is they can live somewhere without a provider or move between countries without having to uproot their retirement savings.

This can save a lot of money as transferring a pension every time an expat moves to another country can be hassle and expensive.

These third party pensions are popular with contractors moving around the world on short assignments – such as oil and gas workers who spend their resting time in places with a cheap cost of living, such as Thailand and The Philippines.

Third party QROPS are a good place to consolidate UK standard pensions – including SIPPs, personal pensions and workplace schemes.

Transferring to a QROPS allows retirement savers to benefit from lower charges, more flexible investments and tax advantages.

QROPS tax advantages for expats

All UK tax-relieved contributions can move into a QROPS – including employer pension contributions and any relief topped up by HM Revenue and Customs (HMRC).

If an employer is offering a golden goodbye payment to encourage a retirement saver to leave a workplace scheme, the payment can go into a QROPS as well.

Once in a QROPS, funds grow without capital gains tax in the same way as UK pensions.

Tax on benefits depends on where a retirement saver lives.

QROPS offer 30% tax-free lump sums and pay in a range of major currencies. Benefits are paid gross and local income tax is applied – not tax at UK rate.


Please enter your comment!
Please enter your name here

Latest article

Struggling Forex Broker Bought Flats With Company Funds

A forex broker whose company was approaching financial meltdown switched £1.05 million from a business account to buy two apartments in Dubai in a...

Stock Markets Slump To Worst Quarter In 37 Years

Stock markets slumped to record losses in the first three mnths of the year due to fears over how coronavirus impacts the world economy...

Operation Airlift Underway For Brits Stranded Abroad

The British government is working with partner airlines to bring thousands of stranded travellers back to the UK. Foreign Secretary Dominic Raab has set aside...

Expat Landlords Get Buy To Let Mortgage Aid

The financial pain of coronavirus uncertainty for buy to let landlords has been eased by the housing minister. Secretary for Housing Robert Jenrick is extending...

Financial Package On The Way For Self-Employed

Financial support is coming for freelance and self-employed expats who pay their taxes in the UK, Prime Minister Boris Johnson has promised. In his last...