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QROPS Grenada Pension Transfer for British Expats to Avoid Paying Taxes


QROPS Grenada Pension Transfers for Grenadians and British Expats to Avoid UK Taxes

Grenadians or British expats who want to retire in Grenada or abroad can now avoid UK taxes with a transfer to a QROPS Grenada. Grenadians who have worked in the UK and built up a substantial pension pot can now transfer their pension offshore to a QROPS to avoid 55% tax upon death and UK income taxes of between 0% and 50%. British expats who want to retire in Grenada or abroad can also avoid these taxes whilst increasing the investment options that are available as well as the ability to have their pension paid out into US Dollars or another currency should they choose.

For British expats in Grenada, you may wish to transfer your pension into USD which the local currency the East Caribbean Dollar is pegged to. The ECD has been pegged to the United States Dollar since July 7, 1976 and the exchange rate is US$1 = EC$2.70. So, expats in Grenada may prefer to transfer their UK pension to USD or keep it in GBP.

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QROPS Grenada Pension Transfer for UK Expats

Why retire in Grenada as a British expat?

Grenada is a Commonwealth country which is made up of a big island and six smaller islands at the southern end of the Grenadines in the South East Caribbean Sea. Grenada is located northwest of Trinidad and Tobago, northeast of Venezuela, and southwest of Saint Vincent and the Grenadines.

With the Commonwealth connection, Grenada has a rich history with the United Kingdom and today enjoys a strong relationship with sports and music providing strong links. Many Grenadians have also worked in the UK.

Grenada is one of the world’s largest exporters of nutmeg and mace as well as other spices such as cinnamon, cloves, ginger, allspices which has earned it the reputation as being known as the “Island of Spice”. Grenada is 133 square miles in area with a population of over 110,000 of which over 3,000 are British expats. Many live in the capital, St. George’s.

Grenada has a tropical climate, which is cooled by winds in dry season whilst being quite hot in rainy season. Being situated in the Southern edge of the Caribbean hurricane zone, it suffers from the hurricanes less than the majority of Caribbean islands. Warm climate, blue seas, friendly locals and a wide array of exotic local food and beverage makes Grenada an attractive place for British retirees. A lot of Grenadians who have worked in the UK all their lives also have decided to move back to Grenada to retire.

For British expats and Grenada returnees, both can choose to transfer their UK pension to a QROPS Grenada to mitigate taxes. A move to a QROPS in NZ and Gibraltar is a good tax strategy for reducing your tax burden when living or retiring in Grenada.

What is a QROPS Grenada?

A Qualifying Recognized Overseas Pension Scheme (QROPS Grenada) 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.

Benefits of Moving Your Pension to a QROPS Grenada

What are the benefits of a QROPS Grenada Pension Transfer for British expats in Grenada?

• 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 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 or New Zealand which has a strong local financial regulatory system.

What is the Tax on a QROPS Grenada?

What is the Personal Income Tax in Grenada?

Residents in Grenada are taxed on their worldwide income, however, you there is a 0% personal income tax below $60,000. Then a 30% tax is applied to any income over ECD $60,000 or US $22,222.22. Seeing as this implies a pension pot of around $450,000 before you need to pay any tax in Grenada.

A transfer to a QROPS in Gibraltar or New Zealand will avoid the UK tax net, in particularly the hefty tax upon death, but you would have to pay income tax on remittance to Grenada. Your QROPS can be paid out to an offshore bank account or into your local bank account in Grenada.

If you have a company in Grenada, it would be liable to pay a corporate tax at a rate of 30%; employees, professionals and sole proprietorships are liable to the same tax rate on income that exceeds 60,000 ECD. Withholding tax is charged at a rate of 15%.

QROPS New Zealand for British Expats in Grenada

  • Avoids Taxation in NZ and UK
  • Income tax in Grenada on remittance of pension income. Currency choice of GBP, EUR or USD
  • 30% lump sum at 55 available
  • 100% of any increase in pension pot after transfer available as a further lump sum
  • 5 investment strategies available dependent on your risk profile

QROPS Gibraltar for a British Expats in Grenada

  • Avoids UK taxation
  • Flat 2.5% income tax rate at source in Gibraltar
  • Income tax in Grenada on remittance of pension income. You may be able to get a unilateral tax credit for tax paid in Gibraltar.
  • Currency choice of GBP, EUR or USD
  • 30% lump sum at 55 available
  • Much wider investment range allowed including shares, mutual funds, ETF’s, bond fund, hedge funds, high interest bank notes, etc.

QROPS Trustees in Grenada

Do I need to move my UK pension to Grenada?

No. There are no QROPS trustees in Grenada, so a tax efficient solution would be to move your pension to Gibraltar or New Zealand to avoid UK taxes. Of course, each situation is unique and you would have to speak to QROPS Specialists in order to get a suitability report prepared. As long as you live outside the UK, you can move your pension to a secure 3rd jurisdiction such as Gibraltar or a QROPS in New Zealand to get your pension outside the UK tax net.

What if I return to the UK?

What happens to a QROPS Grenada if I move back to the UK? If you return to the UK, your pension reverts to normal UK Self Invested Personal Pension (SIPP) rules and you will pay the relevant UK taxes. Otherwise, if you live anywhere else abroad you can avoid UK income tax, dividends tax, capital gains tax and inheritance tax on your pension. Furthermore, your family or beneficiaries will be protected. Upon death, they will receive the entire pension pot.

For enquiries, please send email to info@qropsspecialists.com

QROPS Grenada article written by QROPS Specialists.

QROPS Grenada Pension Transfer for British Expats to Avoid Paying Taxes by

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