If you are planning to retire in the EU there are a number of benefits for transferring your pension funds to our Gibraltar QROPS, listed below:
• Very low tax at source – 2.5%.
• If you live in the EEA, then you will not be subject to the Overseas Transfer Charge of 25%.
• An individual who is tax resident in the EEA for 5 full tax years following the date of transfer, will be exempt from receiving the Overseas Transfer Charge of 25% on their pension transfer from the UK.
• On death there are no Gibraltar taxes applied on the pension fund when it is paid to the nominated beneficiary. In the UK an uncrystallised pension fund will be tested against the Lifetime Allowance. If you die after the age of 75 any benefits paid to your nominated beneficiary will be taxed at the beneficiary’s marginal rate of tax.
• Investment flexibility – UK SIPPs must adhere to the UK’s capital adequacy rules and therefore many SIPP providers only allow standard investments. High Net Worth individuals, who are also sophisticated investors, may prefer to use the investment flexibility of a Gibraltar QROPS.
• In 2017 the Gibraltar Government introduced enhanced pension legislation which allows the Gibraltar financial regulator, the Gibraltar Financial Services Commission, to regulate pension schemes. All pension scheme operators must be licensed to set up and operate a pension scheme.
For more information regarding our Gibraltar Expat Retirement Annuity, please visit our website here.