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QROPS Italy | Transferring a UK Pension to Italy


QROPS Italy | UK Pension Transfers to Italy

Currently, there are no QROPS in Italy on the UK government’s recognised overseas pension schemes notification list (3rd July, 2020).

However, you can transfer a UK pension to a regulated pension scheme in Malta as a resident in Italy.

Transferring a UK Pension to Italy

There are no QROPS in Italy on the UK government’s recognised overseas pension schemes notification list ( 3rd July, 2020).

For residents in Europe, we recommend transferring a UK pension scheme to a QROPS in Malta. This is a regulated pension scheme and retirement benefits can be received anywhere throughout the European Economic Area (EEA) with no tax deducted at source.

Moving to Italy | UK Pension Transfers to a European Pension Scheme

If you are moving to Italy, it is advisable to transfer your pension from GBP to EUR.

Your pension monies will be paid out in EUR to a local bank in Italy.

Why Transfer to a QROPS in Italy?

Reasons you may want to move your pension fund (also known as a ‘pension pot’) overseas to a QROPS:

  • your UK pension scheme is being closed or wound up
  • you want to transfer to a better pension scheme
  • you have pensions from more than one employer and want to bring your pension together under one platform which is more easily managed
  • you’re moving to Italy and want to move your UK pension to a pension scheme in Europe
  • you are already resident in Italy and want to move your UK pension to a pension scheme in Europe
  • you want to move your pension out of the UK and into a regulated pension scheme in Malta
  • you want to move your pension out of a UK retirement portfolio in GBP to a European retirement portfolio in EUR

Tax on a Malta QROPS for Residents in Italy

  • No tax on death at source
  • No tax on growth
  • There is a double taxation agreement between Italy and Malta
  • Local taxes in Italy apply when receiving retirement benefits

Tax on Transfer

There is no tax on transfer under current rules.

However, there is an Overseas Tax Charge (OTC) which can apply if you leave the European Economic Area (EEA) within five years of transferring your pension scheme.

The European Economic Area (EEA) is made up of any EU member state including Italy, as well as Liechtenstein, Norway and Iceland.

So, only move your pension scheme to a QROPS in Malta if you intend to stay in Europe for a period of five years or more, otherwise there is a 25% Overseas Tax Charge or “exit tax” which will be applied.

How to Transfer My UK Pension to a QROPS

Please contact a regulated adviser who will provide you with the necessary forms to give to your UK pension scheme administrator to begin the process. Your adviser will guide you through the process and make recommendations based on your circumstances.

What happens to my QROPS in Malta if I return to the UK?

If you ever return to become resident in the UK, you have the ability to transfer your pension back to a UK Self Invested Pension Plan (SIPP) or you can leave your pension in a QROPS in Malta, but it would incur UK income tax.

Please contact us for more information.