QROPS Pointers For Your Pension
Qualifying Recognized Overseas Pension Scheme (QROPS) is a method by which expats can move their pension pots to one of the countries on this list, usually for the purpose of retirement.
It represents the most widely used and recognized group of countries that share agreements with the United Kingdom. For a country’s scheme to be on the qualifying list means several advantages for the owner of the pension, one of the most important of which is lower tax.
Why Switzerland Is So Attractive
Employees the world over with pensions, and expats from Britain look at Switzerland as their top choice to move their pension to because of the dozens of QROPS in Switzerland – Globaleye Switzerland to choose from.
In addition, they don’t have to be in the country to be able to avail the schemes, which saves them from the burdensome living cost and residency requirements.
Of course, for the many benefits that come with these schemes to kick in, you will have to choose a place other than the United Kingdom to live and move your pension to.
Features and Rules For QROPS
- Cannot take out the funds before the reaching the age of 55, with medical reasons qualifying as an exception
- Can choose to take out the money in a number of currencies, meaning not having to deal with the change in exchange rates, and without hassle of the best time to exchange the money
- You get exposure to larger market and trades
A deal between the British And Swiss government allows withholding tax to be paid on accounts in Switzerland.
This rule does not apply to QROPS funds, meaning this money does not attract the capital gains or income tax.
It means as far as reporting your funds is concerned, you are no more liable than someone who has the same pot held in the UK.
Secondly, your liability to taxes is only initiated when you start reaping the benefits, not when you begin investment.
Alongside the many advantages for ordinary British people and their pension pots in Switzerland, the legal framework is also capable of greatly benefiting those who have substantial pensions.
People with big pensions, many of whom decide to go with Switzerland as their retirement destination, also have a lot to gain from the tax advantages provided by the country.
If the intention is to retire in Switzerland though, people should choose their city of residence carefully. This is because alongside federal taxes, the many cantons and municipalities also have the ability to levy them.
This means in many cases, the choice of locating can make a big difference to how much it costs to live there.