QROPS Brazil. Pension Tax Relief
British expats moving to Brazil or wish to retire in Brazil can now transfer their pension into a QROPS Brazil to maximize pension tax relief. British expats living in Brazil 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.
Brazilians who have worked in the UK can also transfer their pensions offshore to avoid UK taxation on their pension.
Moving to Brazil. Why retire in Brazil?
More than 14,000 British expats live in Brazil with over 600 pensioners. Brazil is the largest country in South America and their official language is Portugese. The Brazilian economy is the world’s 8th largest economy by nominal GDP and the 8th largest by purchasing power parity. Brazil is one of the world’s fastest growing major economies. Economic reforms have given the country new international recognition. Brazil is a founding member of the United Nations, the G20, CPLP, Latin Union, the Organization of Ibero-American States, Mercosul and the Union of South American Nations, and is one of the BRIC countries. Brazil is also home to a diversity of wildlife, natural environments, and extensive natural resources in a variety of protected habitats.
QROPS Brazil. Benefits for British Expatriates in Brazil
What are the benefits of a QROPS Brazil Pension Transfer
• 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
• Currency: Choose GBP, EUR or USD for your pension pot
• Security: Secure jurisdiction such as Gibraltar offers a high degree of pension protection and avoids UK taxes. Only pay a flat rate 2.5% income tax.
What is QROPS Brazil?
A Qualifying Recognized Overseas Pension Scheme (QROPS Brazil) 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.
What is the economy like in Brazil?
The economy of Brazil is the world’s seventh largest by nominal GDP and eighth largest by purchasing power parity. Brazil has moderately free markets and an inward-oriented economy. Its economy is the largest in Latin American nations and the second largest in the western hemisphere.
Brazil is one of the fastest-growing major economies in the world with an average annual GDP growth rate of over 5 percent. In Brazilian reais, its GDP was estimated at R$ 3.143 trillion in 2009. The Brazilian economy has been predicted to become one of the five largest economies in the world in the decades to come. According to Forbes 2011, Brazil has the 8th largest number of billionaires in the world, a number much larger than what is found in other Latin American countries, and ahead of even Japan. Unfortunately, poverty is also rife.
Brazil has the second biggest industrial sector in the Americas. Accounting for 28.5 percent of GDP, Brazil’s diverse industries range from automobiles, steel and petrochemicals to computers, aircraft, and consumer durables. Brazil has a diverse and relatively sophisticated services industry as well. During the early 1990s, the banking sector accounted for as much as 16 percent of the GDP. Brazil is also rich in minerals.
If you are living in Brazil at the moment, you can take advantage of your offshore address in order to move your UK pension into a QROPS Brazil to avoid further UK taxes down the line. A QROPS transfer to Gibraltar is worth serious consideration to avoid UK taxes if you are considering living or retiring in Brazil or any where else abroad.
What are the Taxes on My QROPS in Brazil?
Do I need to move my pension to Brazil?
No. Your pension can be transferred to Gibraltar where it will be out of the UK tax system. You will avoid the 55% tax upon death that the UK imposes when you are drawing your pension income and you also avoid UK income taxes of between 20% and 50%.
Your pension will be taxed a flat rate of 2.5% on income at source in Gibraltar. There is also a tax if your pension income is remitted to Brazil. British expatriates resident in Brazil (and all Brazilians as well) are subject to personal income tax known as Imposto de Renda das Pessoas Físicas (IRPF). This tax is a Union tax and payment is collected by the Federal Government. In April, taxpayers must also report their annual income in annual tax returns.
What is the Personal Income Tax in Brazil?
Income Taxes in Brazil for 2012
Do I need to live and retire in Brazil?
As long as you live outside the UK, your QROPS will avoid UK taxation. Once you are offshore, your pension grows tax free. If you return to the UK, your pension reverts to a typical UK Self Invested Personal Pension.
For enquiries, please send email to firstname.lastname@example.org
QROPS Brazil article written by QROPS Specialists.QROPS Brazil Pension Transfer for British Expats to Avoid Paying Taxes by Richard Malpass