UK Pension Transfers to QROPS in Malta

QROPS in Malta have become increasingly popular as Malta is a British speaking country with a long history of being a recognised and regulated financial centre, but it is also in the heart of Europe.

This ticks all the right boxes if you are considering retiring in Europe and wish to transfer your UK pension out of the UK in order to avoid paying UK taxes.

Malta has Double Taxation Agreements (DTA’s) with over 60 countries including most European countries. Most of these treaties in force mean that if you are retiring in Europe, your pension will be taxed in the country you reside, rather than being taxed in the UK.


QROPS Malta Example

Steve has worked in the private sector for 20 years and has built up a defined contribution or money purchase pension pot of around 200,000 GBP.

In the UK, he would pay income tax of around 20% on his pension income and would also pay a tax on death after 75 of up to 45%.

Steve has always detested English weather and decides to retire to Spain. Under article 21 of the Double Taxation Agreement between Britain and Spain signed in November 2005, a transfer of a UK pension to Malta means it is only taxed in Spain, not in the UK or Malta.

The QROPS in Malta grows tax-free and faces no tax on death.

He can withdraw 30% as tax-free lump sum at any time after 55 years of age.

His pension is paid into his Spanish bank account whenever he likes. He can withdraw as much of his pension as he likes whenever he likes.

Steve just pays Spanish income tax at retirement age at 55 years old on his pension scheme, avoiding tax on death.

Steve then can pass on 100% of his pension pot onto his wife, new partner or children on death, avoiding UK taxation.

QROPS Malta Benefits

  • 30% Pension Commencement Lump Sum (PCLS) allowed, i.e. you can withdraw 30% tax-free lump sum whenever you like after 55 years of age.
  • 100% access to pension whenever you like, similar to UK rules.
  • Income tax at retirement depends on the Double Taxation Treaties between Malta and your country of residence at retirement age, but maybe lower than in the UK
  • 0% tax on death. There is no tax on death. In the UK, this can be as high as 45%.
  • You can convert your pension to EUR or any other currency you want to hold. This will make your pension income more stable.
  • You can hold any investments of your choice that are listed on any of the major stock exchanges around the world. Choose from a huge universe of mutual funds, ETF’s, shares, bonds, gilts, etc.

QROPS Malta Procedure

We begin with a full pension transfer analysis to see if it is better to leave your pension in the UK or to see if QROPS or another type of UK or overseas pension scheme is the best fit

We ask you to complete an international tax compliance questionnaire. Regulations governing international tax transparency and intergovernmental agreements require us to obtain information from clients to determine your tax status.

We fill out the QROPS Malta application form on behalf of clients. This is normally about 40 pages and we fill everything in on behalf of clients with the information we receive from the international tax questionnaire

Once we receive the application form from a client along with proof of identity and address, we pass all the forms to the QROPS trustees in Malta.

They then contact your UK pension company to start the transfer process. After your company has received the transfer papers and application forms, they take up to 3 months to transfer your pension.

Once your pension has been received, the trustees will invest your monies as to your specifications agreed with your financial advisor.

QROPS Malta Retirement Benefits

The QROPS in Malta will pay your retirement benefits at any time you choose after you reach 55 years of age.

This can be paid out to any bank account of your choice, in any country of your choice.

Your income will usually be taxed in the country you retire in on income only; although, the particulars will depend on the DTA’s.

There is no tax on death. Your pension pot will be paid out as a tax-free lump sum to your family or beneficiaries of your choice.

How to Choose Which QROPS in Malta

Here is a list of some popular Malta QROPS trustee pension schemes in Malta

QROPS Malta List

Harbour Malta QROPS Trustees
Momentum Malta QROPS Trustees
Sovereign Malta QROPS Trustees
STM Malta QROPS Trustees

As independent, non-tied advisers, we can source the cheapest Malta QROPS on your behalf and fill out all the Malta QROPS paperwork for you.

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