QROPS Oman. Pension Tax Relief for British Expats in Oman
If you live in or wish to retire to Oman and you are a British Expat, you now have the option of a QROPS Oman, which can be used to reduce the amount of taxes you have to pay. Since you live or work in Oman, you can use your current address to transfer your pension to a secure location. Gibraltar and New Zealand are a few of the places to which you can transfer your pension and escape paying the UK pension tax.
UK Expats and Oman Pension Transfers
Although formerly under heavy influence from the United Kingdom, Oman was never formally part of the British Empire or a British protectorate. British influence in the country was strong after the ousting of the Portuguese, who laid claim to Oman in 1507. During this period of Portuguese colonial occupation, Omani forces still controlled most of the interior of the country, whilst the Portuguese only held on to coastal forts. Oman has been ruled by the Al Bu Sa’idi dynasty since 1744 and has long-standing military and political ties with the United States and United Kingdom, although it maintains an independent foreign policy.
Why live and work in Oman as a British expat?
Over 8,000 Brits work and live in Oman. There is no personal income tax in Oman. Many teachers, engineers, security, medical, oil and gas workers come to work in Oman. As an added bonus, the weather is sublime, there is no crime, and the lifestyle is easy. The currency is the Omani Rial which is pegged to the US Dollar [$10 = 3.85 Rial Sep 23, 2011], so a QROPS transfer allows your pension to be denominated in US Dollars (or GBP or EUR). Oman is famous for its khanjar knives, which are curved daggers worn during holidays as part of ceremonial dress. During the Medieval era, khanjars became highly popular as they symbolized Muslim sailors, and later various types of khanjars were made, representing various sailing nations in the Muslim world. Today, traditional clothing is worn by most Omani men. This typically consists of an ankle-length, collarless robe called a dishdasha that buttons at the neck with a tassel hanging down.
The main daily meal is usually eaten at midday, while the evening meal is lighter. Maqbous is a rice dish, tinged yellow with saffron and cooked over spicy red or white meat. Arsia is a festival meal, served during celebrations, which consists of mashed rice flavoured with spices. Another popular festival meal is shuwa, which is meat cooked very slowly (sometimes for up to two days) in an underground clay oven.
What are the Benefits of a UK Pension Transfer to a QROPS Oman?
What is QROPS Oman?
A Qualifying Recognized Overseas Pension Scheme (QROPS Oman) 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.
If you are living in Oman at the moment, you can take advantage of your offshore address in order to move your UK pension into a QROPS Oman to avoid further UK taxes down the line. A QROPS Oman is the perfect vehicle to avoid UK taxes if you are considering living or retiring abroad.
Let’s Take a Closer Look at Oman’s Economy
Oman’s proved reserves of petroleum total about 5.5 billion barrels, 24th largest in the world. Oil is extracted and processed by Petroleum Development Oman (PDO), with proven oil reserves holding approximately steady, although oil production has been declining. Oman’s mineral resources include chromite, dolomite, zinc, limestone, gypsum, silicon, copper, gold, cobalt and iron.
Oman is known for its popular tourist attractions. Wadis, deserts, beaches, and mountains are areas which make Oman unique among its neighboring Cooperation Council for the Arab States of the Gulf (GCC) nations (wadis in particular). With a coastline of 1700 km, Oman offers clean beaches popular with visitors.
GDP is estimates to grow by 4.4% in 2011.
What are the taxes in Oman for British expat workers?
You don’t pay personal income or sales tax except when you buy pork, tobacco and liquor, in which case the price you pay includes the 100% import tariff. The main taxes that you will come across in your hotel or restaurant bill are a 5% municipality tax, a 6% tourism levy, and occasionally, a service charge of 5% or more, pushing up the bill by a whopping 17%! The rest are hidden taxes in the form of ‘fees’, such as your car registration renewal.
Although foreigners have recently been given the legal right to purchase property on certain developments in Oman, none of these developments are near completion and most expats will rent instead.
QROPS Providers in Oman
Should I Move My QROPS to Oman?
Actually, there are not any QROPS providers in Oman. As mentioned before, Gibraltar and New Zealand are both options for relocating your pension and foregoing the UK taxation for as long as your remain abroad. You are able to receive your payments into your local account or an offshore bank.
What is required to Move My Pension?
While you do not have to live or retire to Oman, you must have an offshore address to transfer your pension outside the UK. If you decide to return to the UK, your pension will once again be governed by the typical UK SIPP rules, additionally, you would get time apportionment relief.
For enquiries, please send email to firstname.lastname@example.org
QROPS Oman article written by QROPS Specialists.QROPS Oman Pension Transfer for British Expats to Avoid Paying Taxes by Richard Malpass