6 April 2015 brought the implementation of a series of UK pension reforms, which also had an impact on Qualifying Recognised Overseas Pension Schemes (QROPS).  One of the jurisdictions affected was Malta.  Below we will outline the QROPS Malta changes.

• QROPS Malta changes will no longer allow benefits to be paid from age 50.  The minimum retirement age of 55 will apply, as with all other QROPS jurisdictions.
• Malta amended its rules to enable QROPS based in Malta to offer the same benefit structures as are permitted from UK pension schemes.  The QROPS Malta changes will allow members to receive the same freedom and flexibility as most UK Defined Contribution Schemes and SIPPs.  This will only take effect after existing Maltese Schemes are licensed and regulated under this new legislation.  This will not be until later in 2015.
• Pension Commencement Lump Sum (PCLS) may consider reducing the tax free lump sum payments from their current level of 30% to 25%, when the new flexible withdrawal rules in Malta are confirmed.
• Withholding tax of up to 35% will continue to apply to withdrawals where no effective Double Taxation Agreement exists.
• No tax on funds after death will continue to apply.

The QROPS Malta changes further strengthen the position that Malta remains an ideal jurisdiction to transfer UK pension funds.

QROPS Malta Changes Advice

Advice remains key, as is the ability to switch jurisdiction, or from QROPS to SIPP and vice versa.  If you would like information about QROPS Malta changes, 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.