QROPS Azerbaijan. Avoiding UK Taxes for British Expats
British expats living in Azerbaijan or wishing to retire in Azerbaijan can now transfer their pension into a QROPS Azerbaijan to maximize pension tax relief. British expatriates living in Azerbaijan can take advantage of their offshore status and transfer their UK pension offshore to somewhere secure like Malta or New Zealand and will no longer have to pay UK taxes on their pension if they stay offshore.
Why live or retire in Azerbaijan as a British expat?
There are 2,400 British expats living in Azerbaijan. Azerbaijan, a nation with a majority Turkic and Shia population, is a secular and a unitary republic with an ancient and historic cultural heritage. Azerbaijan is one of the six independent Turkic states as well as the active members of the Turkic Council and the TÜRKSOY community.
From the total population of 9,165,000 people as of July 2011, nearly 52% was urban population, the remaining 48% was the rural population. By far the largest ethnic group in Azerbaijan (over 90%), the Azeris generally tend to dominate most aspects of the country. Unlike most of their ethnic brethren in Iran, the majority of Azeris are secularized from decades of official Soviet atheism. Azeris are Eurasian and bi-cultural, as northern Azeris have absorbed Russo-Soviet and Eastern European influences, whereas the Azeris of the south have remained within the Turko-Iranian and Persianate tradition. Horseback riding, wrestling, javelin throwing and ox-wrestling are popular in Azerbaijan.
QROPS Azerbaijan. Benefits of a QROPS Transfer for British Expats in Azerbaijan
What are the benefits of a QROPS Azerbaijan Pension Transfer for British expats?
• Currency choice. You can choose to have your pension transferred to a QROPS 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 Malta or New Zealand, former British colonies but have their own strong financial regulations which are tax efficient
What is a QROPS Azerbaijan?
A Qualifying Recognized Overseas Pension Scheme (QROPS Azerbaijan) 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 as long as you have been offshore for 5 years.
What is the economy like in Azerbaijan?
Azerbaijan is an economy that has completed its post-Soviet transition into a major oil based economy (with the completion of the Baku-Tbilisi-Ceyhan Pipeline), from one where the state played the major role. Azeri GDP grew 41.7% in the first quarter of 2007, possibly the highest of any nation worldwide. Such rates cannot be sustained, but despite reaching 26.4% in 2005 (second highest GDP growth in the world in 2005 only to Equatorial Guinea), and 2006 over 34.6% (world highest), in 2008 dropped to 10.8%, and dropped further to 9.3% in 2009. The real GDP growth rate for 2011 is expected at 3.7%
Large oil reserves are a major contributor to the economy. The national currency, the Azerbaijani manat, was stable in 2000, depreciating 3.8% against the dollar. The budget deficit equaled 1.3% of GDP in 2000. Azerbaijan is considered one of the most important areas in the world for oil exploration and development. Proven oil reserves in the Caspian Basin, which Azerbaijan shares with Russia, Kazakhstan, Iran, and Turkmenistan, are comparable in size to the North Sea, although exploration is still in the early stages. In 2010, Azerbaijan entered into top eight biggest oil suppliers to EU countries with € 9.46 billion.
In 2007, mining and hydrocarbon industries accounted for well over 95 per cent of the Azerbaijani economy. Diversification of the economy into manufacturing industries remain a long-term issue. Business reforms in Azerbaijan mean taxpayers can now file and pay their taxes online. Azerbaijan’s extensive reforms moved it far up the ranks, from 97 to 33 in the overall ease of doing business.
QROPS Azerbaijan. Where Can I Move My Pension to as a British Expat?
Do I need to move my pension to Azerbaijan?
No. Your pension can be transferred to a secure jurisdiction such as Malta where it will be out of the UK tax system and your pension will grow tax free.
Do I need to live and retire in Azerbaijan?
No, you can live anywhere offshore. As long as you are outside the UK, your QROPS will grow free of UK tax. If you ever return to live permanently in the UK, your pension will return to UK Self Invested Personal Pension (SIPP) rules.
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Pension tax relief for British expats, QROPS Azerbaijan article written by QROPS Specialists.QROPS Azerbaijan Pension Transfer for British Expats by Richard Malpass