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QROPS Iraq Pension Transfer for British Expats to Avoid Paying Taxes


QROPS Iraq. Reducing Your Tax Bill for British Expats in Iraq

Iraqis who have built up a substantial pension in the UK as well as British expats in Iraq can now transfer their pension offshore to somewhere like Gibraltar or New Zealand to avoid paying UK taxes. Your UK pension can be transferred to a QROPS in Gibraltar or a QROPS in New Zealand to avoid the 55% tax upon death in the UK and UK income taxes of up to 50%.

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QROPS Iraq Pension Transfer for British Expats

How Many British Expats are in Iraq?

Over 9,000 Brits live in Iraq. Engineers, oil workers, diplomats, military personnel, ex-armed forces, security professionals, teachers and NGO’s all make up some of the British working in Iraq. Iraq’s modern borders were marked out in 1920 by the League of Nations when the Ottoman Empire was divided by the Treaty of Sèvres. Iraq was placed under the authority of the United Kingdom as the British Mandate of Mesopotamia.

A monarchy was established in 1921 and the Kingdom of Iraq gained independence from Britain in 1932. In 1958, the monarchy was overthrown and the Republic of Iraq was created. Iraq was controlled by the Arab Socialist Ba’ath Party from 1968 until 2003. After an invasion led by American and British forces, the Ba’ath Party was removed from power and Iraq came under a military occupation by a multinational coalition. Sovereignty was transferred to the Iraqi Interim Government in June 2004.

A new constitution was then approved by referendum and a new Government of Iraq was elected. Foreign troops remained in Iraq after the establishment of a new government due to an insurgency that developed shortly after the invasion. There were 46,000 British troops during the invasion. There are now no British troops in Iraq after they left in May, 2011.

For those Brits living in Iraq or any Iraqis who have worked in the UK and built up a substantial pension, you can now take advantage of your offshore status to move your pension to a QROPS Iraq in order to avoid UK taxes on your pension as well as giving you investment freedom to maximize your pension pot.

What is a QROPS Iraq?

A Qualifying Recognized Overseas Pension Scheme (QROPS Iraq) allows your UK pension to be transferred offshore to mitigate taxes. 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. You can draw an increased lump sum of 30% if you have been living offshore for 5 years.

Benefits of a QROPS for British Expats in Iraq

What are the benefits of a UK Pension Transfer for British expats in Iraq?

• 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 have their own strong pension regulations.

What is the Tax on a QROPS in Iraq?

Personal Income Taxes in Iraq

According to CPA Order No. 49 there is an income tax of 15% on corporations and individuals including non-residents. However foreign employees, contractors and sub-contractors are not liable to pay any tax on income from foreign sources, or income paid by or on behalf of Multi National Forces -Iraq (MNF-I) or foreign governments. MNF-I, foreign governments, international organizations, and NGOs registered pursuant to CPA Order 45 are also exempt from income tax. The CPA Order 49 has also suspended the 25% levy on company profits.

According to CPA Order No. 84 there is a 15% tax on expatriated dividends, a flat sales tax of 10% on hotels and restaurants, a 10% tax on real property and a limited fee chargeable on vehicle sales.

Therefore, A QROPS Iraq lets you avoid both UK taxes on your pension. The tax in Iraq would depend on the jurisdiction that you picked.

Are There any QROPS Trustees in Iraq?

Do I Need to Transfer My UK Pension to Iraq?

There are no QROPS trustees in Iraq, so you would need to move your pension to a 3rd jurisdiction such as NZ or Gibraltar where it will avoid the UK taxes upon death and income taxes in the UK.

What Happens to My QROPS if I Leave Iraq?

As long as you remain outside the UK, your pension will continue to grow tax-free.

However, you may have to pay tax in the country you reside when you take benefits from that pension. If you ever leave to the UK, there are a number of ways to reduce your UK tax bill before you go back.

The tax you pay on your UK pension whilst in Iraq depends on the jurisdiction where your QROPS is parked.

QROPS New Zealand for British Expats in Iraq

  • Avoids All Taxation
  • 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 Iraq

  • Avoids UK and Iraqi taxation
  • Flat 2.5% income tax rate at source 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.

If you are living in Iraq at the moment, you can take advantage of your offshore address in order to move your UK pension into a QROPS to avoid further UK taxes down the line. A

QROPS is an appropriate investment trust to avoid UK taxes if you are considering living or retiring abroad.

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

QROPS Iraq article written by QROPS Specialists.

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

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