If a Double Taxation Agreement (DTA) exists in your country of residence it may then allow you to draw retirement income in as tax efficient a way as possible. This is especially beneficial for countries which have a 0% tax rate.
 
A Malta QROPS Double Taxation Agreement exists between two countries that aim to eliminate the double taxation of income or gains arising in one territory and paid to residents of another territory.  They work by dividing the tax rights each country claims by its domestic laws over the same income and gains. For example if country of residence has a Malta QROPS Double Taxation Agreement it may be that pension income is taxable only in that country and Malta will therefore be able to pay pension income gross without withholding tax rates of between 0% and 35%.

Malta QROPS Double Taxation Agreement has signed treaties with over 65 countries and jurisdictions, in order to encourage the growth of international trade including that of financial services.

Due to the high tax rate on pension income in Malta (up to 35%) it is generally accepted that it is not an efficient jurisdiction unless there is a Double Taxation Agreement DTA in place.  Many of the popular retirement destinations have a Malta QROPS Double Taxation Agreement, including France, Spain, Portugal, Australia and the United States.

Malta QROPS Double Taxation Agreement List

Below is a link to the Malta Financial Services Authority (MFSA) website which shows a list of Malta QROPS Double Taxation Agreements.  Check to see if your country of residence has a DTA which may mean that a Malta QROPS will be most efficient for you.

http://www.mfsa.com.mt/pages/viewcontent.aspx?id=196

Not all DTA’s are written in same, and in some cases the conditions of the DTA may say that tax is shared or that tax arises in Malta rather than the country of residence. Therefore careful consideration should be given to see what basis they operate under.

Malta QROPS Advice

If you would like information about Malta QROPS Double Taxation Agreement, call us on +34 698 243 745 or Contact Us today.

GC QROPS has been successfully assisting UK expats in Spain with UK pension transfers for 9 years since 2006.

We are completely independent, and can advise on a wide variety of QROPS pension schemes – we are not tied to any single provider, which means that we will recommend the scheme which meets your exact requirements and needs.