Monday, 29 October 2012

Malta QROPS


QROPS Week – Day 1

Qualifying Recognised Overseas Pension Schemes (QROPS) have to be approved by the UK Tax Authorities (HMRC) in order to receive transfers from UK Pension Schemes or Plans

Malta, as a jurisdiction is very credible being in the EU and Commonwealth with strong links to the UK. As part of the Eurozone, many expats in Europe welcome the investment in euros which removes the unwelcome exchange rate fluctuations

Key Factors

·       Pension Commencement Lump Sum (PCLS) of 30% is allowed

·       70% of the fund is used to provide retirement income in line with UK requirements

·       Income is more flexible AFTER 5 years of UK non-residency and is paid gross

·       Benefits can be taken at age 50


Fund Investment

·       Investment through a bond is allowed (e.g Prudential, Aviva etc)

·       The range of investments is wide but excludes residential property

Regulation

·       All QROPS schemes are fully regulated by Malta Financial Services Authority

·       Malta is acceptable to UK HMRC due to the existence of a Double Taxation Treaty

·       Malta has very many Double Taxation arrangements, including importantly for expats, most of Europe, USA, Canada and South Africa

·       Maltese Residents and Non-Residents are treated equally for tax purposes, so the scheme passes the ‘fairness’ test

Competition

·       There is a limited choice of MALTA QROPS providers which helps to make fees competitive

Advice

·       ‘Financial Pages in Spain’ will only recommend fully regulated advisers whose services and qualifications have been checked. Selecting the correct QROPS jurisdiction is a key element in the role of an adviser

·       ‘Know your client’ and ‘Treating Customers Fairly’ are key to good advice. Please email me to be referred to an appropriate adviser, a few details will help


David Goodall
Financial Pages in Spain