The recent reform in UK pension law allowing British retirees to withdraw all their savings as a lump sum has shaken the deep-rooted UK pension industry as well as opened up numerous possibilities abroad. The new rule coming into effect on April 6th has the power to see retiring UK nationals transferring their pensions overseas and possibly gaining access to 100% tax-free withdrawal on their full savings amount.
Malta stands much to offer
Being a sun, sand and sea paradise as much as it is a tax haven, Malta might quickly become the place of choice to retire. Being the only QROP compliant jurisdiction offering 100% flexibility on full pension access makes Malta all the more attractive in this regard.
Before the recent reform, QROPS always required to withhold 70% of an individual's savings as an "income for life", thus only allowing the other 30% to be withdrawn as a non-taxable lump sum from the moment of retirement. This might not be the case anymore.
Best case (tax-free) scenario
Therefore consider this for a moment; extensive and incentivising QROPS options, coupled with the possibility to withdraw your full savings amount and what's more, without paying a cent of tax.
The UK government is revising its stance with regards to recognised overseas pension schemes and this tax-free access to pensions outside of the UK. However, it is still the case that the pensions reform has created numerous interesting options for those looking to move and withdraw their money. Malta seems to be currently at the forefront of these appealing propositions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
