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QROPS Malta | UK Pension Transfers to Malta | 2019 Rules

QROPS Malta | UK Pension Transfers to Malta

QROPS Malta has seen many different incarnations over the years; if you want to transfer your pension to Malta into a Recognised Overseas Pension Scheme (ROPS), formerly know as a Malta QROPS, you will need to read this guide to familiarise yourself with the latest rules. The new rules imposed by Philip Hammond in 2017 means that if you move to a QROPS in Malta and you DO NOT live in the European Economic Area (EEA) or if you leave the EEA within five years of transfer, you must pay the UK government a 25% “exit tax”.

A Malta QROPS is a suitable QROPS solution if you are moving to an EEA country and intend to stay in Europe for at least five years following a UK pension transfer. If you return to the UK or move outside Europe within five years, you will be penalised for the pension transfer.

New QROPS Malta Rules Since 2017

  • You must be 55 years of age to access benefits; you can no longer access at age 50
  • You must be resident in the EEA for five years after the date of transfer, otherwise, you will need to pay a 25% exit tax to HMRC
  • Only 25% tax-free cash lump sum allowed, the same as the UK, if you want to take flexible drawdown
  • Flexible drawdown is available, similar to the UK, so you can take your pension in periodic lump sums, as an annual income, as a mix of the two or cash in your pension from age 55; tax will be due where you are resident when drawing benefits if there is a Double Taxation Agreement with Malta; if no DTA, you pay Maltese income tax on the QROPS
  • Tax will depend on where you are living when you decide to draw pension benefits. You will need to look into the Double Taxation Agreements between Malta and the country you reside in to see who gets the taxation rights
  • You then need to look into local personal income marginal tax rates and allowances to see what income tax is payable
  • You need to show proof of tax residence in your country of retirement, if you want your QROPS in Malta to be paid out gross. A DTA also needs to exist. Otherwise, you will be taxed in Malta at Malta personal income tax rates of up to 35%
  • There is no tax on growth or death in Malta
  • You can invest in the currency of your choice, e.g. GBP, USD or EUR
  • You can invest in the investments of your choice: you can self direct, but you cannot self manage. The pension trustees in Malta for your QROPS need to sign off on any changes, so you can’t just log-in and make changes like you can in a UK SIPP
  • If you move back to the UK, often your tax on death will be significantly less due to benefits taken whilst abroad and time spent abroad. Any death taxes in the UK would also be based on the original transfer amount, not any gains.

British expats living abroad can now transfer their pensions to a QROPS Malta to avoid paying UK taxes as long as they remain tax resident outside the UK. A Qualifying Recognized Overseas Pension Scheme in Malta avoids up to 45% tax upon death imposed in the UK after age 75 and also avoids UK income taxes of up to 45% when drawing pension benefits. But, you have to be careful of the Double Taxation Agreements with the country where you  want to draw retirement benefits as you will want to make sure you don’t get hit with a high income tax on remittance into the country you reside in. You also need to check if you will be taxed in Malta or your country of retirement.

Malta currently has 71 Double Taxation Agreements with countries around the world, but you need to study each individual Double Taxation Agreement to understand where the tax liability is. The tax may be imposed in Malta, shared with Malta or be taxed in your country of residence at retirement. Gibraltar QROPS or a UK SIPP may be a better choice in many cases, particularly if you live in a country which does not have a Double Taxation Agreement (DTA) with Malta or you live outside the EEA. If there is no DTA with Malta in your country of residence, you would pay income tax in Malta on any retirement benefits you receive.

Under most circumstances, if a Double Taxation Agreement exists and you are resident in the EEA, a transfer to a QROPS in Malta would mean 0% tax in Malta and 0% tax in the UK as long as you remained in the EEA for five years after the pension transfer.

However, some of the DTA’s mean that the tax could be shared or that the tax could be imposed in Malta, in which case the tax would normally be between 0% and 35%.

However, the withholding tax is 25% if no Double Taxation Agreement exists.

So, a Malta QROPS is certainly not a one size fits all pension transfer jurisdiction for QROPS and a suitability report should be prepared to show the options available. You need to ask your adviser for a TVAS (Transfer Value Analysis) report.

However, in general, a Malta QROPS is suitable for most UK pension transfers to EU destinations due to the strong Double Taxation Agreements and because Malta is in the EU.

QROPS Malta Examples

Am employee working for KPMG gets moved to Germany. After 3 years, he is moved to France and continues to work another 3 years. A Malta QROPS would be taxed on income in France. There is no tax on death. As the client continues to work in the EEA for five years after transfer, there is no “exit tax”.

An employee working for KPMG gets moved to Germany. After 3 years, he is moved to Malaysia by the company. The client would have to pay a 25% exit tax to the UK government if he draws his pension in Malaysia as it is outside the EEA and the five year rule has been broken.

An employee working for KPMG gets moved to Germany. After 6 years, he moves to Malaysia. There is no exit tax as the client has been in Germany for five years already after transfer.

Are QROPS in Malta Safe?

After the bank crisis in Cypus, the first question should be is Malta a secure, safe offshore financial centre? Well, first of all, Malta is more of an onshore financial centre within the EU. Secondly, according to the Central Bank of Malta’s Financial Stability Report, the five core Maltese banks hold assets that are only 223% the country’s GDP, which is half of Europe’s average. The Maltese core banks are nowhere near their Cypriot counterparts: they are smaller, more conservative and generally risk-averse. They also have a lower exposure to Greek debt.

Malta could be the future Dubai of the EU,” Klaus Pedersen, the Internationalization Manager at Malta’s Chamber of Commerce told Al Arabiya English on Wednesday.

At the start of 2013, the Chamber launched a Middle East Business Council to tap into business links between the island and Arab states, with a particular focus on the Gulf countries.

Malta could be an economic tax efficient hub due to its proximity to Europe, the North East and Africa whilst also having over 65 Double Taxation Agreements. The country has a credit rating of BBB+. They are also attracting business in communications and IT.

Why Transfer to a QROPS in Malta?

If you are living or working or intend to retire anywhere in the EU, but are not resident in Malta, you can transfer into a QROPS in Malta to avoid UK taxes. You can then pay your pension income into an offshore account or into a local bank in the EU country you live in.

Furthermore, you can choose the currency your pension is denominated in after a move to a QROPS in Malta. This is great if you live in Spain or the EU. Your pension can be held in Euros, which will minimise currency fluctuations. Alternatively, you can leave in GBP or hold in USD. You also get a much wider choice of funds to invest in. You can hold mutual funds, unit trusts, hedge funds, ETF’s and shares within your portfolio on most of the major exchanges around the world or if you want safety, you can buy government treasuries, UK gilts, corporate bonds or even an international annuity.

You can also move your current pension or pensions ‘in specie’ into a QROPS, which means that you can move your funds currently held in a SIPP into a QROPS in Malta. If you have multiple pensions, you can transfer them all into one QROPS and manage them all in the one place.

history malta qrops

History of QROPS in Malta

Malta has a long and distinguished affiliation with the UK as a trusted and reliable ally in war and peace. The country has two official languages, Maltese and English, with Maltese being considered the national language. Malta gained independence from the United Kingdom in 1964 and became a republic in 1974, whilst retaining membership in the Commonwealth of Nations. That is one of the benefits of a Malta QROPS with all of the administrative staff being able to speak English.

Malta is a member of the United Nations (since 1964) and a member of the European Union (since 2004). Malta is also party to the Schengen Agreement (since 2007) and member of the Eurozone (since 2008). The Schengen Agreement allows freedom of movement of labour and capital which paved the way for modern Qualifying Recognized Overseas Pension Schemes (QROPS). The idea was that if you retired or moved abroad to Europe, it didn’t make sense to leave your pension in the UK. The idea of a QROPS is not to avoid taxes, but to move to a place where it is taxed appropriately.

Malta planned their first QROPS at the end of December in 2009. Even though the Maltese regulators gave QROPS in Malta the green light, it took until March the following year before the first two schemes launched and open their doors to UK pension transfers. But, it wasn’t until the new QROPS rules changes in April 2012 when over 300 Guernsey QROPS and Isle of Man QROPS were removed that Malta business really started to pick up.

QROPS in Malta for British Expats Retiring in Malta

QROPS Malta pensions for British expats living in Malta and other countries have been available on the island since December 2009. The offshore financial centre is steadily becoming more popular with a reputation for providing a competitive tax regime, a stable economy as well as clearly defined financial regulations.

Malta QROPS follow the same rules as any other QROPS offshore pension scheme. The Inland Revenue lays down the rules a QROPS scheme must follow for inclusion as a registered pension scheme on the UK QROPS list. Each individual QROPS scheme is managed by trustees who determine the terms and conditions of their specific QROPS within the framework provided by HMRC. This means that the administration of a QROPS can vary from one scheme to another. Email us for the latest Malta QROPS fees and Malta QROPS list.

For British expats who retire in Malta, they will be exposed to income tax of between 5% and 35% depending on their annual income.

However, they will avoid all UK taxes and most importantly, they will be able to pass 100% of their pension pot onto their spouse, partner, children or any named beneficiaries of their choice upon death.

This could also be set up to provide an income for a spouse or child. This is a popular option for those with spouses who aren’t financially competent or have little knowledge of the financial options available. A trust can be set up to pay contributions in the future. If set up correctly, this could actually provide an income for life which could be passed on continually for generations free from inheritance tax.

The Security of a Malta QROPS

The Malta Financial Services Authority (MFSA) was established by law on 23 July 2002. It is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA has taken over supervisory functions previously carried out by the Central Bank of Malta, the Malta Stock Exchange and the Malta Financial Services Centre to become the single regulator for financial services. The sector incorporates all financial activity including banking, investment and insurance. The MFSA also manages the Registry of Companies and has also taken over responsibility as the Listing Authority.

Over the past decade, Malta has moved from being an offshore to an onshore jurisdiction. It has completed a programme of reforming all its finance sector legislation in line with international best practice and was one of the first six countries in the world to reach an advanced accord on fiscal matters with the Organisation for Economic Co-operation and Development (OECD). As a result of this agreement Malta is NOT considered as a tax haven. It is actively involved with the OECD, the EU and the Commonwealth in modelling global regulatory policy.

Malta’s finance industry has benefited significantly from the country’s national policy of moving to the mainstream. Financial Services is the fastest growing sector of the Maltese economy and one of the most important employers of trained professional staff. This is one of the key reasons that Malta QROPS have become so popular and seem to be well liked by HMRC.

The Insurance Business Act, 1998, and the Insurance Brokers and Other Intermediaries Act, 1998 regulate the insurance sector. The Banking Act, 1994 and the Financial Institutions Act, 1994 regulate the provision of banking and financial services. Under the Prevention of Money Laundering Act, Malta established a financial intelligence analysis unit (FIAU), which reports to the Attorney General. Malta is gradually abolishing bearer accounts.

Why Malta is now one of the top 3 QROPS jurisdictions for UK pension transfers:

Safety and security: Malta is in our opinion the clear choice in terms of robust QROPS legislation.

Full Pension Flexibility: The main reason for a UK pension transfer to Malta is that it allows flexible drawdown similar to the UK, so you can access 100% of your pension from age 55 and the tax on income can often be lower than that in the UK.

Key Reasons for a UK Pension Transfer to a Malta QROPS:

  1. The Maltese Financial Services Authority (MFSA) consulted with HMRC to ensure that the domestic pension rules were compatible with HMRC requirements. Only then were the first Maltese QROPS approved locally.
  2. Each QROPS is approved individually by the MFSA.
  3. A Maltese QROPS qualifies on the basis that its domestic pension taxation is compatible with HMRC (as above) and that it is in the EU. As Malta is based in the EU, there are no additional subjective requirements that are required for the schemes to remain a QROPS.
    HMRC cannot legislate currently or retrospectively against a regulated pension in an EU member state.
  4. The MFSA approve each QROPS individually, the due diligence and capital adequacy requirements ensure that only the most diligent providers can operate a Maltese QROPS. The MFSA ensure continuing compliance through stringent audit requirements, annual reporting and publication of financial statements.
  5. With a wide network of 71 double tax treaties, a Maltese QROPS does not have to rely on statutory instruments to ensure tax efficient withdrawals.

There have been a number of QROPS that have been removed from the HMRC list. A QROPS in Singapore was removed because it was not registered correctly with the local regulator. A Hong Kong QROPS was removed because it was not set up in line with local Hong Kong pension rules and QROPS in Guernsey have had to work through some issues with HMRC based upon different providers interpretations of the 70% income for life rule.

None of these issues could occur in Malta.

What is a QROPS Malta?

A Qualifying Recognized Overseas Pension Scheme (QROPS Malta) allows your UK pension to be transferred offshore to reduce your tax burden. Effectively, you will no longer pay UK tax on your pension after you have been offshore for 5 years and after 10 years of living offshore, the reporting requirements to HMRC cease. These reporting requirements are undertaken on your behalf by the QROPS trustees in any case.

Malta allows flex-drawdown, similar to UK rules, but often the tax can be less.

You can now take 30% as a tax-free cash lump sum and the rest you can take any time your like after age 55 either as periodic lump sum payments or as an income. The choice is yours.

Chargeable Income (EUR)Tax RateTax Deducted (EUR) 
Single Rates
0 - 9,10000
9,101 - 14,50015%1,365
14,501 - 19,50025%2,815
Married Rates
0 - 12,70000
12,701 - 21,20015%1,905
21,201 - 28,70025%4,025
28,701 - 60,00025%3,905
Parent Rates
0 - 10,50000
10,501 - 15,80015%1,575
15,801 - 21,20025%3,155
21,201 - 60,00025%3,050

Benefits of a UK Pension Transfer to Malta

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

• Avoids UK income tax of up to 45%

• It may reduce your income tax bill depending on where you retire, local taxation rules and the DTA’s which are in force with Malta

• Avoids the death tax in the UK after age 75 of up to 45%

• Full flexi-access drawdown at age 55

• 30% tax-free lump sum at age 55

• Allows full pension flexibility similar to the UK

• Keeps your pension outside of UK Inheritance Tax (IHT)

• If you ever return to the UK, your death tax bill could be negligible depending on the amount of time spent abroad

• Currency choice & optimisation. You can choose to have your pension transferred to a QROPS in Malta denominated in USD, EUR or keep it in GBP. If you are in a country in Europe, e.g. Spain, you may wish to have your pension paid out in EUR, so you don’t have to worry about currency fluctuations affecting your annual pension income every year.

Investment Choice. Have the ability to make higher returns or reduce risk with a much wider choice of funds

Family Protection: Upon death, the entire pension pot gets passed on to whomever you nominate. You can also set up trusts based on a letter of wishes choosing how that lump sum is paid out or set up a family trust which pays an annual income rather than a one off payment

Security: Pensions in Malta are regulated by the MFSA and Malta has some of the strongest pension regulations which are also EU approved.

uk pension transfers malta

Tax on Your QROPS in Malta

What tax do I pay on a QROPS in Malta?

Countries Where there is No Tax in Malta on Your QROPS

In these countries, there would be no tax applicable in Malta.

0% tax in Malta:

Albania, Armenia, Australia, Austria, Bahrain, Belgium, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Finland, France, Georgia, Germany, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Israel, Italy, Jersey, Kuwait, Lebanon, Libya, Luxembourg, Malaysia, Montenegro, Morocco, Netherlands, Palestine, Pakistan, Poland, Portugal, Qatar, Romania, San Marino, Saudi Arabia, Serbia, Slovakia, South Korea, Slovenia, South Korea, Spain, Sweden, Switzerland, Syria, Tunisia, Turkey, United Arab Emirates, Uruguay, USA

N.B. Since the last Budget in 2017, any of the countries based outside the EEA would be subject to a 25% “exit tax” payable to the Inland Revenue in the UK.

In other words, a Malta QROPS is not appropriate if you are moving to the USA, Canada, Australia, New Zealand, Asia, Africa, Latin America, Switzerland or any non-European countries. In these cases, a more optimal solution would be to leave your pension where it is or look into an international SIPP.

Countries where there is a shared tax in Malta on your QROPS in 2019:

Tax is shared between your country of residence and Malta for residents in Barbados, Estonia, India, Jordan, Latvia, Lithuania and Singapore.

The tax is also shared on a Malta QROPS for residents in Canada and Norway, however this is capped at a flat rate of 15%.

Countries Waiting for Tax Ratification with Malta

Treaties awaiting ratification: Azerbaijan, Bosnia and Herzegovina, Kuwait, Oman, Russia, Thailand, Ukraine, Uruguay.

As of 7th Feb, 2017, you would pay tax in Malta at source and also possibly in your country of retirement as no Double Taxation Agreement is in force yet.

Countries Where You Would Pay Tax on a QROPS in Malta

Bulgaria, Hong Kong and South Africa have Double Taxation Agreements, but the tax is paid in Malta. All other countries with no DTA with Malta would also pay tax in Malta on any pension income which is received at source in Malta. Tax would be between 0% and 35%. The Withholding tax is 25% if no DTA exists.

Countries where the Tax on a QROPS in Malta is Paid Overseas

Residents of Australia, Ireland and South Korea would pay income tax in those countries on remittance from Malta. Residents in Australia can “park” their pensions in a QROPS in Malta and then filter payments into an Australian SMSF after they reach 55 years of age.

Tax on a QROPS in Malta

Personal Income Tax in Malta

Withholding Tax on Your QROPS if You Live in a Country Which Does Not Have a DTA with Malta

Chargeable Income (EUR)Tax RateTax Deducted (EUR) 
Single Rates
0 - 9,10000
9,101 - 14,50015%1,365
14,501 - 19,50025%2,815
Married Rates
0 - 12,70000
12,701 - 21,20015%1,905
21,201 - 28,70025%4,025
28,701 - 60,00025%3,905
Parent Rates
0 - 10,50000
10,501 - 15,80015%1,575
15,801 - 21,20025%3,155
21,201 - 60,00025%3,050

For Non-Malta Residents, i.e. British expats who live abroad, outside of UK and Malta

If you do not live in Malta, your QROPS will usually be paid gross and no Maltese or UK taxes will be applied as long as you live in a country which has a Double Taxation Agreement (DTA) with Malta and that DTA doesn’t specify you have to pay tax in that country. However, you will have to pay the income tax upon drawdown in the country that you live in.

Important – You now have to supply evidence that you are tax resident in your country of retirement to avoid paying tax on your QROPS in Malta.

If you live in a country which does not have a Double Taxation Agreement with Malta, the Maltese withholding tax will be applied. If you live in a country which does not have a DTA with Malta for example Thailand, a Gibraltar QROPS or New Zealand QROPS may be a better solution.

For Maltese Residents, i.e. British expats who live in Malta

If you are a British expatriate living in Malta or you are a British expat considering moving to Malta which is already an attractive destination for British expats; it is set to become even more attractive as new tax rules have been introduced to further improve an already favourable tax regime.

With no inheritance, wealth, or annual property taxes in place in Malta, British expats often venture there to both work and retire. Now, new changes have further relaxed income tax too.

British expatriates working in Malta will now be taxed at just 15% on all the income they derive from Malta, half as much as the earlier rate of 30%. Any income sourced from outside Malta is completely tax free, as are capital gains from outside Malta.

However, to qualify for this special rate British expats in Malta must meet certain requirements.

The expat must not be a habitual resident or domiciled in Malta. Also, the expat must have professional qualifications or be highly skilled in specific sectors including: Chief Executive Officer, Chief Risk Officer, Chief Financial Officer, Chief Operations Officer, Chief Technology Officer, Chief Investment Officer, Portfolio Manager, Senior Trader/Trader, Senior Analyst (including Structuring Professional), Actuarial Professional, Chief Underwriting Officer, Chief Insurance Technical Officer, Head of Marketing or Head of Investor Relations.

The expat must also claim a salary of £75,000 or more.

For expats who want to retire in Malta there are different requirements and tax rates.
If you are an EU national who is not domiciled in Malta then you have free reign to retire there and enjoy very favourable tax rates. Any capital gains received will be remitted free from tax, meaning that if you retire with the intention of living off capital you can live completely tax free. There also special investment structures that can help you minimise tax.

rops malta

QROPS Malta | Full List of Countries Which Have Double Taxation Agreements with Malta

Which countries have a Double Taxation Agreement with Malta?

If the country you live in has a Double Taxation Agreement (DTA) with Malta, your pension will be paid gross with no UK or Maltese taxes imposed. If the country you reside in does not have a DTA with Malta, a withholding tax of between 15% and 35% may be taken.

Malta DTA’s

CountryDate SignedCountry Where Income is TaxableDTA Article
Albania02/05/2000Pension income taxable in AlbaniaArticle 21
Australia09/05/1984Pension income taxable in Australia / temporary residents taxed in MaltaArticle 18
ArmeniaInitialled / being negotiated
Austria29/05/1978Pension income taxable in AustriaArticle 18
AzerbaijanInitialled / being negotiated
Bahrain06/03/2012Pension income taxable in BahrainArticle 20
Barbados05/12/2001Shared jurisdiction / pension income taxable in Malta
Belgium28/06/1974Pension income taxable in BelgiumArticle 21
Bosnia-HerzegovinaInitialled / being negotiated
Bulgaria23/07/1986Pension income taxable in MaltaArticle 18
Canada25/07/1986Shared jurisdiction*Article 18
China02/02/1993Pension income taxable in ChinaArticle 22
Croatia21/10/1998Pension income taxable in CroatiaArticle 21
Cyprus22/10/1993Pension income taxable in CyprusArticle 22
Czech Republic21/06/1996Pension income taxable in Czech RepublicArticle 21
Denmark30/12/1998Pension income taxable in DenmarkArticle 18
Egypt20/02/1999Pension income taxable in MaltaArticle 18
Estonia03/05/2001Shared jurisdiction / pension income taxable in MaltaArticle 21
Finland30/10/2000Pension income taxable in Finland / Annuity Income taxable in MaltaArticle 18
France29/08/2008Pension income taxable in FranceArticle 22
Georgia23/10/2009Pension income taxable in GeorgiaArticle 21
Germany08/03/2001Pension Income taxable in GermanyArticle 18
Greece13/10/2006Pension income taxable in GreeceArticle 21
Guernsey10/3/2013Pension income taxable in GuernseyArticle 20
Hong Kong8/11/2011Pension income taxable in MaltaArticle 17
Hungary06/08/1991Pension income taxable in HungaryArticle 22
Iceland23/09/2004Pension income taxable in IcelandArticle 21
India08/09/1994Shared jurisdiction / pension income taxable in MaltaArticle 23
Ireland14/11/2008Pension income taxable in IrelandSubject to remittance limitation**
Isle of Man23/10/2010Pension income taxable in the Isle of ManArticle 21
IsraelSigned on 28 July 2011 - Not yet in force
Italy16/07/1981Pension income taxable in ItalySubject to remittance limitation**
Jersey19/07/2010Pension income taxable in JerseyArticle 21
Jordan16/04/2009Shared jurisdiction / pension income taxable in MaltaArticle 21
Korea25/03/1997Pension income taxable in KoreaArticle 21 - Subject to remittance limitation**
Kuwait24/07/2002Pension income taxable in KuwaitArticle 22
Latvia22/05/2000Shared jurisdiction taxable in MaltaArticle 22
Lebanon16/04/2010Pension income taxable in LebanonArticle 21
Libya28/12/2008Pension income taxable in LibyaArticle 23
Lithuania17/05/2001Shared jurisdiction taxable in MaltaArticle 22
Luxembourg29/04/1994Pension income taxable in LuxembourgArticle 21
Malaysia03/10/1995Pension income taxable in MalaysiaArticle 18
MexicoSigned on 17 December 2012 / being negotiated
MoldovaSigned on 10 April 2014 / being negotiated
Montenegro04/11/2008Pension income taxable in MontenegroArticle 21
Morocco26/10/2001Pension income taxable in MoroccoArticle 18
Netherlands18/07/1995Pension income taxable in the NetherlandsArticle 19
Norway02/06/1975Shared Jurisdiction*Article 18
OmanInitialled/being negotiated
Pakistan08/10/1975Pension income taxable in PakistanArticle 21
PalestineSigned - Not yet in force
Poland07/01/1994Pension income taxable in PolandArticle 22
Portugal26/01/2001Pension income taxable in PortugalArticle 21
Qatar26/08/2010Pension income taxable in QatarArticle 18
Romania30/11/1995Pension income taxable in RomaniaArticle 23
RussiaSigned - Not yet in forceBeing renegotiated
San Marino10/09/2009Pension income taxable in San MarinoArticle 21
Saudi ArabiaSigned - Not yet in force
Serbia16/06/2010Pension income taxable in SerbiaArticle 21
Singapore29/02/2008Shared Jurisdiction / Pension income taxable in Malta
Slovakia07/09/1999Pension income taxable in SlovakiaArticle 21
Slovenia08/10/2002Pension income taxable in SloveniaArticle 22
South Africa16/05/1997Shared jurisdiction / pension income taxable in South AfricaArticle 18
Spain08/11/2005Pension income taxable in SpainArticle 21
Sweden09/10/1995Pension income taxable in SwedenArticle 21
Switzerland06/07/2012Pension income taxable in SwitzerlandArticle 21
Syria22/02/1999Pension income taxable in SyriaArticle 21
ThailandInitialled / being negotiated
Tunisia31/05/2000Pension income taxable in TunisiaArticle 21
TurkeySigned - Not yet in force
UAE13/03/2006Pension income taxable in the UAEArticle 21
UkraineInitialled / being negotiated
United Kingdom12/05/1994Pension income taxable in the United KingdomArticle 18 - Subject to remittance limitation**
United States of America10/11/2010Pension income taxable in the USAArticle 17 - Double Taxation Relief Order
Uruguay11/3/2011Pension income taxable in UruguayArticle 20

Should I Transfer My UK Pension to Malta?

If you live in Malta or in a country which has a Double Taxation Agreement with Malta, then a QROPS pension transfer is a great option to avoid paying UK taxes legally. If you live in a country which does not have a Double Taxation Agreement with Malta, you may be better off transferring to a Gibraltar QROPS or New Zealand QROPS.

Do I need to live and retire in Malta to get the QROPS Benefits?

No, if you move your pension into a QROPS in Malta you can live anywhere offshore. As long as you are outside the UK, your QROPS will grow free of UK tax and no tax will be applied on death as long as you remain tax resident outside the UK. You will also get time apportionment relief and will likely pay less tax on death if you ever return to the UK, as you have several opportunities to take higher lump sums or benefits offshore.

Who are the Cheapest Malta QROPS Trustees?

QROPS competition in Malta is now maturing with several candidates who have entered the market, although Boal & Co, Momentum, STM and Sovereign are among the bigger names in the market.

The QROPS market is constantly evolving. In order to get the lowest Malta QROPS fees and figure out which jurisdiction will be most tax efficient and give you the lump sum as well as the pension income you need, you should contact a QROPS specialist.

For pension enquiries, please send an email to

QROPS Malta article was written by QROPS Specialists.

QROPS Malta | UK Pension Transfers to Malta | 2019 Rules by