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Moving a UK Pension Scheme to Europe

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Transferring a UK Pension Scheme to Europe

Transferring a UK pension scheme to the European Economic Area is possible through a Qualifying Recognised Overseas Pension Scheme (QROPS).

Please see the links below to find out how to transfer a pension scheme from a regulated UK pension scheme to a regulated pension scheme in Malta in euros.

Malta is the only QROPS in Europe that has Double Taxation Agreements with all the countries in the European Economic Area. It also has Double Taxation Agreements with many other countries around the world.

You should only move your pension to a QROPS if you move overseas for a period of five years or more.

If you are working in the EU for less than five years and move back to the UK, your pension would face an Overseas Tax Charge (OTC) of 25%.

Moving a Pension Plan to Europe

Why move a pension to a QROPS in Malta?

  • Malta has Double Taxation Agreements with over 74 countries around the world including most countries in Europe
  • If you are resident in any country in the European Economic Area, there is no tax at source in Malta
  • You can move anywhere in the world and keep your pension situated in a QROPS in Malta. Tax rates will depend on the Double Taxation Agreements in place
  • Malta is regulated by the Maltese Financial Services Authority (MFSA)

Countries with Double Taxation Agreements with Malta

The following countries have a Double Taxation Agreement with Malta.

There is no tax at source on a QROPS in Malta if you draw retirement benefits in these countries. Local taxes will apply.

Albania, Armenia, Australia, Austria, Bahrain, Belgium, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Finland, France, Georgia, Germany, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Israel, Italy, Jersey, Kuwait, Lebanon, Libya, Luxembourg, Malaysia, Montenegro, Morocco, Netherlands, Palestine, Pakistan, Poland, Portugal, Qatar, Romania, San Marino, Saudi Arabia, Serbia, Slovakia, South Korea, Slovenia, South Korea, Spain, Sweden, Switzerland, Syria, Tunisia, Turkey, United Arab Emirates, Uruguay, USA

Countries Waiting for Tax Ratification with Malta

Treaties awaiting ratification: Azerbaijan, Bosnia and Herzegovina, Kuwait, Oman, Russia, Thailand, Ukraine, Uruguay.

Countries Where a QROPS is Taxed at Source in Malta

Bulgaria and Hong Kong.

Income Tax on QROPS in Malta When No DTA Exists

The withholding tax in Malta is 25% if no Double Taxation Agreement exists.

Income tax in Malta would be taken at source at between 0% and 35%.

Malta QROPS Rules

  • You must be 55 years of age to receive retirement benefits
  • You must be resident in the EEA for five years after the date of transfer, otherwise, there is a 25% Overseas Tax Charge (OTC)
  • Flexible drawdown is available, similar to the UK, so you can take your pension in periodic lump sums or as an annual income.
  • Tax will depend on where you are resident when you decide to draw pension benefits. You will need to look at the Double Taxation Agreements between Malta and the country you reside in
  • You need to show proof of residence in your country of retirement if you want your QROPS in Malta to be paid out gross.
  • There is no tax on growth or death on a QROPS in Malta as long as you do not become UK resident
  • Retirement portolios are professionally managed

Transferring a UK Pension to a QROPS in Malta for Residents in the EEA

Please follow the links below for more information:

Please contact us for more info.