# Pension Transfer



## andycastle (Mar 30, 2015)

Does anyone know how the recent pension changes (UK) effect transfering pensions into Qrops?
ie what are the options are best from a currency conversion/tax point of view


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## marr (Apr 8, 2015)

A resident of Portugal would probably opt for a Maltese QROPS from a tax perspective, since all income is paid with no deduction of tax, and any growth within the pension is tax-free. It can also hold and pay out money in any currency.

Malta has already amended its legislation to mirror the pension freedoms available in the UK, and it is expected to come into force later this year.

I deal with pension transfers on a regular basis, and I can confirm that this is currently a hot topic for people considering QROPS.


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## PPashley (Sep 9, 2013)

Sure the pension would be tax free from a QROPS scheme based in Malta (or other jurisdiction - Gibraltar etc.)

But would the QROPS income then need to be declared as income for a Portuguese resident and then taxed there as worldwide income etc?


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## marr (Apr 8, 2015)

I'm not a Portuguese tax expert, but I would say that the answer is almost certainly yes - it should be declared.

Some expats in Portugal might benefit though from the Non-Habitual Resident (NHR) regime which renders any foreign pension income as non-taxable.


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## dstump (Apr 26, 2010)

Just a note that you do need to take professional advice, any income from investments managed out of one of the 80 or so 'blacklisted' countries by the PT tax man will incur 35% tax, even if its origin is a QROPS, FYI Gibraltar and IoM are both on the 'blacklist. 

As Marr correctly pointed out Malta is definitely a favourable place to house a QROPS, it is not on the 'blacklist', another country you might want to consider is New Zealand.


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## dstump (Apr 26, 2010)

Just picked this up from a recent article in the Daily Telegraph:

_"The new pension freedoms will allow you to move abroad, take your hard-earned savings with you - and potentially escape some of the taxes that would otherwise apply here in Britain.

If you move to sunny Portugal for example, it could be possible to take your UK pension and pay absolutely no tax on it for the first 10 years. This applies even if you withdraw large sums, a move which in the UK could attract crippling tax charges, as such withdrawals are treated and taxed as ordinary income.

*Portugal: No tax on your pension*

It is possible to move to Portugal and pay absolutely no tax whatsoever on your pension, whether you decide to take it as one lump sum or as a regular income.

This is because the United Kingdom has a double tax treaty with Portugal and in 2009, Portugal introduced the nonhabitual residents regime.

This allows new arrivals who become tax resident to take all foreign sources of income such as pensions tax free for the first 10 years.

Jason Porter of Blevins Franks, a company that specialises in financial advice for British expats in Europe, says this is available to anyone who has not been a resident for tax purposes for the previous five years.

To qualify, you need to register as a non-habitual resident with the Portuguese tax authorities, and after 10 years you will be taxed at Portugal's marginal rates."_


The ultimate pension freedom: Retire in Portugal and reduce your tax - Telegraph


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## PPashley (Sep 9, 2013)

Interesting article. Thanks for posting.


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## Barneygixer1052 (Jul 25, 2017)

Hi, do you have any experience of a company called "Alexander Peter Wealth Management"?


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