If you are one of the many individuals who transferred your UK pension to a QROPS in Malta before April 2017, you should consider the potential tax implications when you start to draw your pension.
In Malta, you can withdraw up to 30% of the fund as a tax free lump sum.
However, the remaining fund is subject to Malta personal income tax at rates of up to 35%, unless a working double tax treaty is in place with the member’s country of residence.
These treaties should be scrutinised as they do not always include the treatment of pension income.
Alternatively, you should consider transferring your pension to the IVCM New Zealand Expat Superannuation Fund to benefit from tax free growth and no tax on withdrawals.
This is a PIE Superannuation and all funds have elected to be foreign investment zero-rate PIE, meaning those who transfer their UK pension money to the fund are only subject to pay tax on any growth within the fund.
The amount of tax paid on growth is paid at your Prescribed Investor Rate, and for those who are not resident in New Zealand, can elect for a 0% rate and therefore they will not pay any tax on the growth.
There is no tax on payments from the Fund from age 55.
If you wish to have flexible access to your retirement fund with no tax on your payments, the IVCM New Zealand Superannuation Fund is the one for you.
You can compare the tax payable in different jurisdictions by using the Tax Calculator on our website.