If you have a UK pension and are resident or have the intention to become a resident outside the UK, you are eligible for a QROPS transfer. Given the many potential benefits you should consider a QROPS pension transfer and talk to us.
Beside the general benefits there are a few country specific benefits for Spain.
In the UK you are encouraged to buy an annuity since otherwise your pension fund will be eroded because of taxation. Whenever you have transferred your pension into a QROPS this is not the case.
The Inheritance Tax on pension schemes was waved since tax year 2011-2012, however a 55% charge will be levied on the fund when passed on and taken as a lump sum. This is not the case with a QROPS. Since the QROPS is basically a pension trust there is no Spanish Inheritance Tax to pay on the fund when passed on.
There are several ways in structuring your income from a QROPS. Whenever for example structured as a temporary annuity you can benefit from lower income taxation.
Since UK law states that no less than 70% of your pension fund needs to serve to provide income in retirement, you can take up to 30% lump sum from a QROPS without breaching UK pension legislation.
You can have assets in different currencies inside your QROPS and take income in your local currency.
There are many QROPS available with all kind of charging structures, some of which are very competitive.
Since UK pension schemes are in many cases over-regulated with poor investment flexibility you can benefit from a much wider range of investment products inside a QROPS.
Most defined benefit schemes in the UK are in deficit which means your income in retirement is at risk. You can obtain a cash equivalent transfer value and secure your retirement income inside a QROPS.
For further information on QROPS transfers while you are in Spain and to be introduced to an accredited QROPS adviser in Spain, simply use the contact form to the right and we will introduce you to a QROPS advisor in Spain, all with the strictest confidence and without any obligation or cost to you.
