UK Pension Transfer to Austria
QROPS Austria – UK pension transfers to Austria are unusual as most QROPS in Austria are . Most expats who move to Austria decide instead to move their pensions to Hong Kong as there are more tax, currency and investment advantages. Under current law, in 2016, a Hong Kong pension is taxed in Hong Kong and not Austria.
So, British expats working in Austria and anyone who has built up a UK private pension scheme or final salary pensions scheme can move their UK pension to a QROPS in Hong Kong and avoid all taxes on their pension as long as they remain tax resident in Hong Kong. Even if you retire else offshore, you may still be able to avoid tax on your pension if you reside in one of the 27 countries in the world which give the taxation rights to Hong Kong (see below).
QROPS List Austria
- Allianz Elementar Lebensversicherungs-Aktiengesellschaft | QROPS Austria
- APK Pensionskasse AG | QROPS Austria
- BONUS Pensionskassen Aktiengesellschaft | QROPS Austria
- Bundespensionskasse AG | QROPS Austria
- Sozialversicherungspensionskasse AG | QROPS Austria
- Valida Industrie Pensionskasse AG | QROPS Austria
- Valida Pension AG | QROPS Austria
- VBV-Pensionskasse Aktiengesellschaft | QROPS Austria
We suggest moving a UK pension to a QROPS in Hong Kong. A QROPS in Hong Kong avoids Austrian income taxes. A QROPS in Austria attracts Austrian income tax (see below).
Income Tax in Austria on a ROPS
A Hong Kong QROPS avoids any tax in Austria thanks to Article 18 of the Austria-HK tax agreement which gives the taxation rights to Hong Kong.
A Malta QROPS or NZ QROPS is taxed in Austria on income, but avoids tax on death. A Gibraltar QROPS faces 2.5% income tax in Gibraltar, plus Austrian income tax.
Austrian income tax is between 0% and 50%.
Income taxes in Austria on individuals are set progressively up to 50% on a four-bracket progressive schedule:
Austria Income Tax Rates 2016/17
Taxable Income in Austria (TI):
Income Income tax in €
€ 0 to € 11,000 € 0
over € 11,000 to € 25,000 (TI – 11,000) / 14,000 x 5,110
over € 25,000 to € 60,000 (TI – 25,000) / 35,000 x 15,125 + 5,110
over € 60,000 (TI – 60,000) x 0.50 + 20,235
Income Tax in Austria on an Hong Kong QROPS for a Resident in Austria
The Austria-Hong Kong Double Taxation Agreement gives the taxation rights to Austria, which means that tax is zero. There is no income tax, no capital gains tax, no dividends tax and no death tax on a Hong Kong QROPS for residents in Austria.
QROPS Hong Kong Benefits for Residents in Austria
- No income tax in Hong Kong
- No capital gains tax in Hong Kong
- No dividends tax in Hong Kong
- No death tax in Hong Kong
- No UK tax on death as long as QROPS member does become tax resident in the UK
- No UK income tax as long as QROPS member remains tax resident outside the UK
- No tax in Austria as the taxation rights are given to Hong Kong under the Austria-HK DTA
- So, no tax on your QROPS pension in the UK, HK or Austria as long as you remain tax resident in Austria
- Even if you leave Austria to retire elsewhere, you have a choice of 27 countries where you would be no income tax or tax on death on your pension pot
- Choose GBP, EUR or USD as the base currency for your QROPS pension scheme
- Freedom of choice of investments from selected platforms
- Pension can be paid directly to your local bank in Austria or into an offshore bank of your choice at retirement
- Retirement benefits can be taken from age 55; no maximum retirement age, so you could use a HK ROPS simply for inheritance tax planning
- Neither a spouse nor any tax authority can seize assets of the QROPS pension trust. Your pension pot is not available to any creditor, even in event of bankruptcy
- 25% tax-free lump sum available at 55; 70% of the pension amount transferred must provide an annual income for life
- After the transfer to a QROPS in Hong Kong, you can continue to make additional pension contributions (top ups) to your QROPS from anywhere worldwide
- Maximum amount allowed to be transferred to a QROPS in HK from a UK Pension scheme is 1,000,000 GBP for 2016/17
- Hong Kong has Double Taxation Agreements (DTAs) enforced with 32 countries. 27 of these countries assign Hong Kong the right to tax Hong Kong-sourced pension income; this means if you move to retire to another country, it may be tax advantageous and you pay no tax on income; at worst it is tax neutral and you just pay income tax in your country of residence at retirement
- Hong Kong is an OECD country which is white listed and has tight regulations administered by the MPFA in HK.
The 27 countries listed below have agreed that they will not tax Hong Kong pension income paid to their residents:
Austria, Belgium, Brunei, Canada, Czech, France, Guernsey, Hungary, Indonesia, Ireland, Jersey, Korea, Kuwait, Lichtenstein, Luxembourg, Malaysia, Malta, Mexico, Netherlands, Peoples Republic of China, Qatar, Republic of South Africa, Switzerland, Thailand, UAE and Vietnam.
Who is Eligible for a QROPS in Hong Kong?
British expats in Austria
Austrians holding a UK pension scheme (UK personal pension, SIPP, SSAS, final salary scheme, DB, DC scheme)
Anyone holding a UK pension scheme, although UK state pensions cannot be transferred nor final salary pension schemes “in payment”