QROPS Kenya for British Expats to Avoid Paying UK Taxes in Kenya

QROPS Kenya for British Expats in Kenya

British expats living in Kenya or planning to retire in Kenya can now transfer their pension into a QROPS Kenya to avoid UK taxes. British expats living or working in Kenya can take advantage of their offshore status and transfer their UK pension offshore to somewhere secure like Gibraltar or New Zealand and will no longer have to pay UK taxes on their pension if they stay offshore.

Even Kenyans who have worked in the UK and built up a substantial personal private pension or UK company pension can transfer to a QROPS to avoid UK taxes.


Why live or retire in Kenya if you are a British expat?

More than 32,000 Brits still live in Kenya. The British Empire established the East Africa Protectorate in 1895, which from 1920 was known as the Kenya Colony. The independent Republic of Kenya was formed in December 1963. Kenya’s capital, Nairobi is a major commercial hub. The economy of Kenya is the largest by GDP in East and Central Africa. The country traditionally produces world renowned tea and coffee, and more recently became a major exporter of fresh flowers to Europe. The service industry is driven by the telecommunications sector. It has a history of producing some of the world’s finest track athletes. Britain’s colonial ties with Kenya still makes Kenya a place for British expats to do business. Kenya is also home to the world famous Safari Rally, commonly acknowledged as one of the toughest rallies in the world.

What are the Benefits of a QROPS Kenya?

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

• Avoid UK income tax
• Avoid UK dividends tax
• Avoid UK capital gains tax (CGT)
• Avoid 55% tax upon death
• 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 which have their own strong financial regulations which are tax efficient

What is QROPS Kenya?

A Qualifying Recognized Overseas Pension Scheme (QROPS Kenya) 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. For British expats in Kenya, the most popular choice of transfer would be to a Gibraltar QROPS which gets your pension out of the UK tax net and you simply pay a small 2.5% income tax when receiving your pension income, but 100% of your pension pot would be passed on to your loved ones upon death.

If you are living in Kenya 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 legal financial planning tool to avoid UK taxes if you are considering living or retiring abroad.

Gibraltar QROPS for British Expats in Kenya

  • Avoids UK income tax of 0% – 50% and 55% tax upon death in the UK
  • Income tax is a flat rate of 2.5% at source in Gibraltar. Then you can remit to an offshore bank account or into a bank account in Kenya at which point you pay income tax in Kenya. This is suitable if you are not sure where you will retire.
  • 100% of pension pot can be passed on as a lump sum upon death
  • Much wider range of investments available. Can purchase most shares, ETFs, bond funds, hedge funds, etc.

New Zealand QROPS for British Expats in Kenya

  • Avoids UK income tax of 0% – 50% and 55% tax upon death in the UK
  • Avoids NZ taxation for British expats in Kenya
  • 100% of pension pot can be passed on as a lump sum upon death
  • 5 investment strategies based on your risk profile

Our preference would normally be for a QROPS in Gibraltar, but this would depend on your risk profile and what you want to do with your pension.

Tax on a QROPS in Kenya

If you are resident in Kenya for more than 183 days per year, you are taxed on your worldwide income at the following rates:

Kenya personal income tax rates are progressive up to 30%, as follows:

Yearly income (Kshs)   Progressive Tax Rate(%)

0 to 121,968                                      10%
121,969 to 236,880                          15%
236,881 to 351,792                          20%
351,793 to 466,704                          25%
Over 466,704                                    30%

You can get the latest income tax rates in Kena from this link.

Do I need to move my pension to Kenya?

No. There are no QROPS in Kenya. Your pension can be transferred to a secure jurisdiction such as the Gibraltar or New Zealand where it will be out of the UK tax system and your pension will be paid gross and grow tax free.

What happens if I retire outside of Kenya?

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 simply return to UK Self Invested Pension Plan (SIPP) rules, except you would also get time apportionment relief and likely pay little to no tax upon death.

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

QROPS Kenya article written by QROPS Specialists

QROPS Kenya for British Expats to Avoid Paying UK Taxes in Kenya by

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