Friday, 22 October 2010

Isle of Man QROPS (update)

  • Change in taxation rules

  • No Double Taxation Agreement (DTA)

  • Look at NZ, Guernsey and Malta

This article is written to an audience, primarily, of British and Irish expats in Spain. I would also like to welcome my new regular reader in Malta.

The Island Government in IOM (Tynwald) has changed the laws so that the Isle of Man can compete in the QROPS market. Income can now be paid gross, without the deduction of tax.

I still don’t recommend IOM. As I wrote during QROPS Week ( see September) the following is still true;

Isle of Man
The Isle of Man is a stable place for financial planning because it is a low tax environment, has expertise in tax planning and is mainly served by UK trained advisers, lawyers and accountants.

For Spanish residents and people planning to live in Spain, the Isle of Man is not a good place for your QROPS. The Isle of Man does not have a Double Taxation Treaty with Spain.

If you are reading this from a country that has a DTA with IOM then I would recommend it, but only after you have considered NZFT (below). Please email me if you need clarification.

New Zealand Foreign Trust (NZFT)
Please refer to my article on this new innovative arrangement

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You can write to me with your personal experiences, ask me a question or to be put in touch with my recommended adviser by sending me an email