QROPS Afghanistan Pension Transfer
British expats living abroad can now transfer their pension into a QROPS Afghanistan to maximize pension tax relief. British expats in Afghanistan can take advantage of their offshore status and transfer their UK pension offshore to somewhere secure like Gibraltar or New Zealand and will no longer have to pay UK taxes on their pension if they stay offshore.
Even Afghanistanis working in the UK can transfer their pensions offshore to avoid 55% tax upon death that the UK imposes whilst drawing benefits and UK income taxes. Afghan interpreters who move outside the UK can move to a QROPS for example.
Bollywood is big in Afghanistan, as is soccer, cricket, basketball, volleyball, taekwondo, boxing, and bodybuilding. Buzkashi is a traditional sport, mainly among the northern Afghans. It is similar to polo, played by horsemen in two teams, except each team is trying to grab and hold a goat carcass.
The south and eastern parts of Afghanistan are the most dangerous due to their distances from Kabul and their flourishing drug trade. It is suggested up to 3 million people in Afghanistan are involved in the illegal drug business, many of the attacks on government employees and institutions are carried out not only by the Taliban militants but also by powerful criminal gangs.
Benefits of a QROPS Afghanistan
Pension Tax relief for UK citizens living in Afghanistan. QROPS Afghanistan
• Avoid UK income tax
• Avoid UK dividends tax
• Avoid UK capital gains tax
• Avoid UK inheritance tax
• Have the ability to make higher returns with freedom of investment
• Protection: if anything happens to you, your nearest and dearest gets the entire pension pot
• Security: if the pension company goes bust, you are guaranteed at least 90% of your pension back.
What is QROPS Afghanistan?
A Qualifying Recognized Overseas Pension Scheme (QROPS Afghanistan) allows your UK pension to be transferred offshore to reduce your tax burden. Effectively, you will no longer pay UK tax on your pension whilst you are offshore and after 10 years of living offshore, the reporting requirements to HMRC cease.
Why move to a QROPS Afghanistan? Afghanistan, officially the Islamic Republic of Afghanistan, is a landlocked country in South and Central Asia with a population of about 28 million, making it the 42nd most populous and 41st largest nation in the world. It is bordered by Pakistan in the south and east, Iran in the west, Turkmenistan, Uzbekistan and Tajikistan in the north, and China in the far northeast. The territory now forming Afghanistan has been an ancient focal point of the Silk Road and human migration.
The UK is working closely with the Government of Afghanistan to support its efforts to build an effective, democratic and capable nation. Priority areas of work includes: Bilateral assistance, reconstruction, narcotics suppression and improving human rights.
A number of the armed forces, private contractors, teachers, engineers, oil workers and UN workers from the UK are based in Afghanistan.
If you are living in Afghanistan at the moment, you can take advantage of your offshore address in order to move your UK pension into a QROPS Afghanistan to avoid further UK taxes down the line and get pension tax relief. A QROPS Afghanistan is the perfect vehicle to avoid UK taxes if you are considering living or retiring abroad.
What is the economy like in Afghanistan?
Its natural resources include gold, silver, copper, zinc, and iron ore in the southeast; precious and semi-precious stones (such as lapis, emerald, and azure) in the northeast; and potentially significant petroleum and natural gas reserves in the north. It also has quantities of uranium, coal, chromite, talc, barites, sulfur, lead, marble, and salt. It was revealed in 2010 that the country has about $1–3 trillion in untapped mineral deposits.
Afghanistan is an impoverished and least developed country, one of the world’s poorest. In 2010, the nation’s nominal GDP stood at $16.63 billion and the GDP per capita was about $1,000. Its unemployment rate is 35% and roughly 36% of its citizens live below the poverty line. About 42 percent of the population live on less than $1 a day, according to USAID. However, due to the infusion of multi-billion dollars in international assistance and investments, as well as remittances from expats, the economy has steadily improving, growing at approximately 12 percent per year during the past six years. It is also due to improvements in agricultural production, which is the backbone of the nation’s economy because over 75% of its citizens are involved in this field.
QROPS Afghanistan. Where Do I move My UK Pension to for Tax Efficiency?
Do I need to move my pension to Afghanistan?
No. There are no QROPS trustees in Afghanistan. If you are a British expat or have ever worked in the UK, your pension can be transferred to a jurisdiction such as Gibraltar or New Zealand where it can grow without having to pay any UK taxes. Your pension can then be paid into your local bank account or an offshore bank and receive full pension tax relief. A QROPS in Gibraltar avoids all UK taxation and has a simple flat rate tax of 2.5%.
Do I need to live and retire in Afghanistan?
No. But, you need to have an offshore address in order to move your pension abroad. You can then live or retire anywhere outside the UK. If you ever move back to the UK, your pension will revert to typical UK SIPP rules.
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QROPS Afghanistan Pension transfer for British expats abroad article written by QROPS Specialists.QROPS Afghanistan Pension Transfer for British Expats by Richard Malpass