# UK pension - forward planning for move to spain



## Rufus9999 (May 22, 2021)

Hi all, hope you can offer me some advice for my future retirement plans - I have obtained a very favourable CETV from my old frozen db pension (final salary) and also have a small dc pension. I wish to combine these and put them in a drawdown pension to use as and when during retirement.
I am currently a uk resident but plan to emigrate to spain when I am 55 (and start to claim my pension), I am currently 52 so trying to get things in place before emigrating. 
Can I combine both pension funds (DB & DC) into a QROPS now, while still resident in uk or do I have to wait until I have emigrated to spain and become a spanish resident, bearing in mind I wish to avoid the overseas transfer tax from uk and wish to pay as little tax on the pension funds once living in spain.?
Presume if its not possible until I emigrate I would have to combine the funds in a SIPP to move to qrops at a later date.

best regards

R 

As a side note, I have irish parentage and have the right to become an irish citizen (EU citizen) - if being an EU citizen, would make matter easier (It would make spanish residence less complicated due to EU freedom of movement) but unsure of the tax implications of this.


----------



## Max Rigger (Aug 2, 2020)

Get the Irish passport, it will make things so much easier for you. I'm in the same position as you although younger, I'll finish at around 55 (15 years) and got my Irish passport two years ago. I'll be after buying a fixer upper Finca later this year if all goes to plan.


----------



## Barriej (Jul 23, 2012)

Irish passport would be the way to go. My wife was going to do this before we revised our plans and moved pre brexit.
The current wait times are around 30 months (both her parents were born in N.I and 3 of the 4 grand were born in S.I)
She still has an application pending and its been stuck in limbo for the past year.

As you are in no current hurry, definitely go that route.


----------



## Hanwell (May 23, 2021)

Hi R,

I would be more than happy to help you look at consolidating both of the pensions Into a SIPP at a fraction of the cost of other international financial advisories.

Once you are fully emigrated to Spain you could look at transferring the pensions with a local advisor there?

Look forward to hearing from you!


----------



## Glynb (Oct 6, 2016)

Rufus9999 said:


> Hi all, hope you can offer me some advice for my future retirement plans - I have obtained a very favourable CETV from my old frozen db pension (final salary) and also have a small dc pension. I wish to combine these and put them in a drawdown pension to use as and when during retirement.
> I am currently a uk resident but plan to emigrate to spain when I am 55 (and start to claim my pension), I am currently 52 so trying to get things in place before emigrating.
> Can I combine both pension funds (DB & DC) into a QROPS now, while still resident in uk or do I have to wait until I have emigrated to spain and become a spanish resident, bearing in mind I wish to avoid the overseas transfer tax from uk and wish to pay as little tax on the pension funds once living in spain.?
> Presume if its not possible until I emigrate I would have to combine the funds in a SIPP to move to qrops at a later date.
> ...


Can't advise on pensions, you need a professional. You should definitely get that Irish passport. The Spanish Residency requirements in terms of required level of savings and income criteria will be higher for Brits than for EU citizens in future post Brexit. If you're very wealthy, that might not be an issue, but it can never be a bad thing to have two nationalities (especially where one provides EU membership!). Also you can then get residency for a British spouse as your dependent by virtue of your Irish passport, if necessary.


----------



## Rufus9999 (May 22, 2021)

Thanks all, I will get the irish passport sorted - massive waiting lists at present due to covid and offices being closed etc but they are still providing the service for those with irish parents but not irish grandparents. 

My wife unfortunately will want to emigrate to spain with me, sods law, so I would hope she would be included as resident with me under my irish passport.

Rufus


----------



## Rufus9999 (May 22, 2021)

PS it wont cause me problems having a uk and irish passport will it, dual nationality?

What about the pension , should I move it to sipp first and then onto a qrops after emigrating?


----------



## SophieDIFA (May 23, 2021)

Hi Rufus,

Dual nationality wont be an issue - you'll just use your Irish passport when applying for residency.

The short answer to your pension planning questions is yes, you can consolidate your pensions into a SIPP and then move to a QROPS once you emigrate, however, each transfer will incur fees so you need to go through an advice process to determine the best course of action without the need for additional fees.

At the moment, a transfer to the QROPS does not attract any UK taxation*, as long as the QROPS and the member are both based in the EEA.

*unless your consolidated funds are above the Lifetime Allowance (£1.073m)

Now that the UK have left the EEA, it is unclear as to whether an overseas tax charge of 25% will be introduced (as has been the case for transfers outside of the EEA from March 2017). So as you plan to move to Spain in 3 years, the rules can change within this time.

There are subtle differences between a SIPP & QROPS, and depending on your objectives, it may not be necessary to transfer to a QROPS.

Feel free to reach out directly with further questions


----------

