QROPS in the UAE- Best Options for British Pensioners
Mario Vitanelli always makes a point to be well-informed. He is a political enthusiast who writes on topics in the realm of international finance, working with QROPS Group. His other interests include cooking, photography and cheering on his favorite football teams.
The UAE (Dubai in particular) is becoming a very popular destination for British retirees due to the high standard of living, spectacular weather, amazing architecture and proximity to the UK. If you have a UK pension and are thinking about spending your retirement years in the UAE, or anywhere outside the UK for that matter, consider moving your pension funds to a QROPS in a neutral jurisdiction such as Malta. Malta has emerged as the number one jurisdiction of choice for advisors and pensions. And with good reason.
Adherence to the HMRC’s Regulations
One of the main reasons why Malta is so popular with British pensioners is the lesson they learned from the once popular Guernsey. QROPS in Guernsey were wiped out overnight when HM Revenue & Customs passed Statutory Instrument 1221, ruling that preferential tax rates to non-residents could not be offered and any QROPS in violation were to be disavowed (they were left with 3 of their 313 QROPS providers).
Since then Malta has become quite popular and well-liked by HMRC. The Maltese Financial Services Authority (MFSA) undertook extensive consultations with HMRC to ensure that the domestic pension rules are compatible with HMRC requirements. The MFSA also approves each individual QROPS and ensures continued compliance through strict audit requirements, annual reporting, and publication of financial statements.
Double Taxation Agreements
An advantage Malta has over it rivals is their network of Double Taxation Agreements with nearly 70 other nations. DTAs are designed to relieve taxpayers from double taxation in the jurisdiction where the income was generated and their current physically residence. British pensioners can retire in the UAE and because of the DTA in place pensions will be paid out gross with no Maltese or high UK taxes imposed.
Whether you transfer your UK pension to Malta or go elsewhere, seek out a financial advisor with connections to the UK and an expert understanding of HMRCs rules. Not doing so may prove risky. If given incorrect advice, you could end up with a substantial tax to pay and may be liable for additional penalties.