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French QROPS and Italian QROPS Removed But QROPS HK and Malta OK


French QROPS and Italian QROPS Removed by HMRC

French QROPS and Italian QROPS have been removed from HMRC’s ROPS list. French and Italian expats who have worked in the UK can no longer move their UK pensions to their home countries when they return home. British expats retiring in France or Italy also cannot move their QROPS to these countries. However, all is not lost. If you want to move your pension out of the UK tax net, you can still transfer a UK pension to Hong Kong, Malta (EU country) or New Zealand. A QROPS in these jurisdictions faces zero tax on death as long as you remain tax resident outside the UK.

All French QROPS and all Italian QROPS, now simply known as Recognised Overseas Pension Schemes or ROPS by HMRC. Neither QROPS in France nor QROPS in Italy met the new ROPS requirements. Often, they fail the member pension age test. One month ago, 11 French and 19 Italian pension schemes were on the list of recognised overseas pension schemes published monthly by HMRC. But no schemes were listed for either of these countries when an updated list was released this week. Large insurance companies such as Swiss Life, Axa and Aviva in France all failed the ROPS requirements test. Unless France and Italy change their pension rules or write new insurance contracts which only allow entry for members aged 55 and above, these closures will be permanent.

QROPS Solution for Residents in France and Italy

There is a solution for resident in France and Italy. You can still move your UK pension to a ROPS in Hong Kong, New Zealand or Malta. Hong Kong and NZ ROPS are zero tax rated. There is no income tax, tax on growth or death tax in Hong Kong or New Zealand. For residents in France, a Hong Kong actually also attracts zero income tax even in France as the Double Taxation Agreement gives the taxation rights to Hong Kong.

french-qrops

Hong Kong QROPS for French and Italians

  • Avoids tax on death and growth in HK for Italians. They just pay Italian income tax on remittance of retirement funds
  • Avoids tax on death, growth and income for French residents as the taxation rights are given to Hong Kong
  • 25% tax-free cash lump sum allowed at age 55; this lump sum may be taxed in France
  • The rest must provide an annual income for life
  • No need to buy an annuity
  • Invest in shares, mutual funds, etc. on any major stock exchange worldwide
  • Choose GBP, USD, EUR, etc.
  • Strong pension regulations in Hong Kong

Click here to read more about ROPS in Hong Kong
Click here to read more about pension transfers to France
Click here to read more about pension transfers to Italy

Malta QROPS for French and Italians

  • Avoids tax on death and growth in HK for Italians. They just pay Italian income tax on remittance of retirement funds
  • Avoids tax on death and growth for French residents. They just pay IFrench income tax on remittance of retirement funds
  • 25% tax-free cash lump sum allowed at age 55; this lump sum may be taxed in France
  • Full flexible drawdown allowed in Malta similar to the UK, but income may be taxed
  • No need to buy an annuity
  • Invest in shares, mutual funds, etc. on any major stock exchange worldwide
  • Choose GBP, USD, EUR, etc.
  • Strong pension regulations in Malta

Please contact us for the latest QROPS fees and best advice.

French QROPS and Italian QROPS Removed But QROPS HK and Malta OK by

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