QROPS Schemes in Cyprus have now closed for business. The below information is out of date
The Mediterranean sunshine isle of Cyprus is a popular retirement destination for British ex pats and international workers who have saved for retirement with a UK pension.
The problem is retiring outside Britain with a UK-based pension piles up tax, investment and currency exchange fluctuation problems.
That’s why many retirement savers prefer to switch their Uk pensions offshore to a qualifying recognised overseas pension scheme (QROPS).
QROPS work two ways in Cyprus – the country has a handful of offshore pensions based on the island that offer a limited choice of retirement options or pension investors can look at a third-party QROPS.
These QROPS offer Cyprus residents all the tax and investment flexibility of any other QROPS scheme but are based in another country – hence the third party tag.
So what are the benefits of a QROPS for someone retiring to Cyprus?
- Control of investments is a major attraction. A QROPS falls outside UK pension rules, and although the schemes are policed by HM Revenue & Customs, many onshore complications do not apply to a QROPS
- Flexible investment options – QROPS let pension investors assess their risks to benefit from a broader range of funds and commodities than a standard Uk pension
- Shelter from currency exchange fluctuation – QROPS pay benefits in several major currencies, including Sterling, US dollars and Euros, which can save money paid as commission on currency exchange to banks
- Tax effective – QROPS have a range of tax advantages, including shelter from capital gains on fund growth and estate planning options that remove inheritance tax
Whether a retirement saver is looking at switching a UK pension pot to a Cyprus QROPS or a QROPS in another jurisdiction, the best way to approach the change is to take expert, regulated advice from a financial firm with a track record of successful QROPS transfers.
To find out more about QROPS in Cyprus or if you live or are moving to Cyprus, contact QROPS.net today.