QROPS – qualifying recognised overseas pension schemes

QROPS allow you to move your pension to a recognised scheme in another country. This may provide greater benefits than your current scheme. As well as the potential to reduce your tax liabilities, you may be able to leave your entire pension fund to loved ones and increase your spouse’s pension income to above the level offered by Spain defined benefit schemes.

You can consolidate multiple pension funds into one pot with a QROPS and grow your savings tax-free above the Spain lifetime allowance limit. However, transferring your pension to a QROPS may not be the right thing to do. It may make more financial sense to leave your pension where it is. Or transfer your pension to another scheme such as a SIPP. It all depends on your individual circumstances.

We recommend you get advice from a qualified pension specialist before you decide to move your pension. Our advisers are certified by the Chartered Insurance Institute (CII).

Key benefits and tax advantages of QROPS

QROPS offer the following potential benefits depending on your personal and financial circumstances and your country of residence:

• Tax-free lump sum of up to 30% of pension fund
• Lower tax rate on pension income
• Pass on more of your pension fund to beneficiaries
• Increase your spouse’s pension income above the level offered by Spain defined benefit schemes
• Tax-free growth above the Spain lifetime allowance limit
• Protection from exchange rate fluctuations
• Greater investment choice
• Consolidate multiple pensions into one fund
• Access your pension from age 55

How our international pension specialists can help

We can evaluate your situation and explain your options clearly to you, so that you can make an informed decision. Having specialised for over 30 years in providing advice to people who live or work abroad, we are well placed to guide you through the complexities of pension transfer.