Since the changes to the QROPS legislation in April 2012, Malta is now considered the leading QROPS jurisdiction.
As a member of the EU, Malta’s pensions are recognised as being suitable QROPS by the UK’s HMRC.
The main features of Malta QROPS are:
Pension income payments are paid gross at source for member residents in a country or jurisdiction with a Double Taxation Agreement (DTA) with Malta*
- Income payments available at 120% of UK GAD rates
- 30% pension commencement lump sum payment available
- Further lump sum payments available through the Maltese system of programmed withdrawals
- An overseas pension can pay benefits in EUROs (or potentially any currency)
- A member does not have to purchase an annuity
- Upon death, as a member of an overseas scheme, the fund available to beneficiaries may be better than what is available from UK pensions
*It is essential that an individual seeks advice before transferring to a Malta QROPS. If an individual is not living in a country or territory that does not have a DTA they face a potential withholding tax of up to 35% on all pension income.