QROPS Armenia. Pension Transfers for British Expats in Armenia
British expats living in Aremnia or wishing to retire in Armenia can now transfer their pension into a QROPS Armenia to maximize pension tax relief. British expats living in Armenia can take advantage of their offshore status and transfer their UK pension offshore to somewhere secure like Gibraltar and will no longer have to pay UK taxes on their pension if they stay offshore. Instead, it will grow tax free, but face a simple flat rate tax of 2.5% in Gibraltar. They avoid UK IHT. At the moment, Armenia does not have a Double Taxation Agreement with Malta, but they are in discussions. We offer a service with a view to a free transfer to a QROPS in Malta should the DTA be signed at a later date.
Why live or retire in Armenia as a British expat?
Less than a 100 Brits live in Armenia. It is located between Turkey, Georgia, Azerbaijan and Iran. A former republic of the Soviet Union, Armenia is a unitary, multiparty, democratic nation-state with an ancient and historic cultural heritage.
The Kingdom of Armenia became the first state to adopt Christianity as its religion in the early years of the 4th century (the traditional date is 301). The modern Republic of Armenia recognizes the Armenian Apostolic Church as the national church of Armenia, although the republic has separation of church and state. The Government of Armenia holds European integration as a key priority in its foreign policy as it is considered a European country by the European Union.
Armenians have their own distinctive alphabet and language. The alphabet was invented in AD 405 by Saint Mesrob Mashtots and consists of 38 letters, 2 of which were added during the Cilician period. 96% of the people in the country speak Armenian, while 75.8% of the population additionally speaks Russian although English is becoming increasingly popular.
Armenian music is a mix of indigenous folk music, perhaps best-represented by Djivan Gasparyan’s well-known duduk music, as well as light pop, and extensive Christian music. The markets offer woodcarving, antiques, fine lace, and the hand-knotted wool carpets and kilims that are a Caucasus specialty. Armenian gold smithery enjoys a long tradition. Popular sports include wrestling, weightlifting, judo, soccer, chess, and boxing.
QROPS Armenia. Pension Tax Relief
What are the benefits of a QROPS Armenia Pension Transfer for British expats in Armenia?
• Avoid UK income tax
• Avoid UK dividends tax
• Avoid UK capital gains tax (CGT)
• Avoid UK inheritance tax (IHT)
• Currency choice. You can choose to have your pension transferred to a QROPS Armenia denominated in USD, EUR or keep it in GBP
• Have the ability to make higher returns with freedom of investment
• Family Protection: Upon death, the entire pension pot gets passed on to your nearest and dearest
• Security: The pension is held in a secure jurisdiction such as Gibraltar, an EU sovereign state but which has its own strong financial regulations which are tax efficient.
What is a QROPS Armenia?
A Qualifying Recognized Overseas Pension Scheme (QROPS Armenia) 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 5 years of living offshore, the reporting requirements to HMRC cease.
If you are living in Armenia at the moment, you can take advantage of your offshore address in order to move your UK pension into a QROPS Armenia to avoid further UK taxes down the line. A QROPS Armenia pension transfer is an option worth looking into to avoid UK taxes if you are considering living or retiring abroad.
What is the Armenian economy like?
Armenia, whose economy shrank by 15% in 2009 as an expatriate-financed construction boom fizzled along with the world economy. With a mediocre growth forecast for the next few years, this landlocked former Soviet republic, dependent upon Russia and Iran for virtually all of its energy supplies, is struggling to keep up with the rest of the world. Per-capita GDP of $3,000 is less than a third of neighboring Turkey, and inflation is running at 7%. On top of that, Russia cut back on supplies of diamonds, hurting Armenia’s once-thriving diamond-processing industry.
The economy relies heavily on investment and support from Armenians abroad. Before independence, Armenia’s economy was largely industry-based – chemicals, electronics, machinery, processed food, synthetic rubber, and textile – and highly dependent on outside resources. The republic had developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics in exchange for raw materials and energy.
Armenian mines produce copper, zinc, gold, and lead. The vast majority of energy is produced with fuel imported from Russia, including gas and nuclear fuel (for its one nuclear power plant); the main domestic energy source is hydroelectric. Small deposits of coal, gas, and petroleum exist but have not yet been developed.
The Armenian economy is forecast to grow at 4.6% in 2011. The economy comprises agriculture: 22.5%, industry: 43.5% and services: 34.1%.
QROPS Armenia. UK Pension Transfer to Aremia
Do I need to move my pension to Armenia?
No. Your pension can be transferred to a secure jurisdiction such as Gibraltar where it will be out of the UK tax system and your pension will be paid with a flat rate tax of 2.5%, but will grow tax free and avoid UK IHT.
Do I need to live and retire in Armenia?
No, you can live anywhere offshore. As long as you are outside the UK, your QROPS will grow free of UK tax. A 2.5% flat rate income tax will be imposed on any pension income you receive at source. If you ever return to live permanently in the UK, your pension will return to UK Self Invested Personal Pension (SIPP) rules, but you will also get time apportionment relief.
For enquiries, please send email to firstname.lastname@example.org
Pension tax relief for British expats, QROPS Armenia article written by QROPS Specialists.QROPS Armenia by Richard Malpass