Malta QROPS Jurisdiction Information

Malta QROPS Jurisdiction InformationQualifying Recognised Overseas Pension Schemes in Malta are popular with British expats and international workers because they seem to offer all the benefits of offshore pension planning without risk that comes with some financial centres.

Malta provides some encouragement and security to investors over many other financial centres for a number of reasons:

  • The Mediterranean island has a long reputation for political and economic stability
  • Malta is a former member of the Commonwealth, and as such, has a financial and legal system run on British lines
  • Malta is a full member of the European Union – adding an extra layer of trust and financial security for long-distance investors
  • The island has a transparent tax policy with double taxation and information exchange treaties with many leading nations
  • English is the official first language of Malta
  • QROPS are regulated by the Malta Financial Services Authority to strict local rules laid down by the Special Funds (Regulation) Act
  • Maltese QROPS were designed in co-operation with HM Revenue & Customs and run inside the British tax man’s guidelines
  • Malta QROPS are ideal solution for QROPS USA residents and citizens

Risky investment safeguards

One key difference between Malta QROPS and those provided elsewhere is the trustees’ responsibility to safeguard investor funds.

Maltese QROPS trustees may only delegate fund management to a regulated advisor – and they must make sure that the fund manager observes the island’s pensions regulator rules. This means that unless an authorised fund manager is appointed, any investment instructions tend to go through the trustees.

This extra layer of financial security stops unregulated managers putting a retirement saver’s cash into dodgy investments.

Third party QROPS

Malta can also offer ‘third party’ QROPS.

This is important for retirement savers who want to take their British pension offshore but do not plan to settle in Malta. Some financial centres, like Jersey and Guernsey, can only provide QROPS to residents.

A third-party QROPS allows investors to live anywhere they wish – except the UK – while their pension stays in Malta.

This is a valuable benefit if the retirement saver’s home is somewhere with lower rates of income tax than Malta. Providing proof of tax paid is given to the Maltese tax authority, and pension income is paid gross and in a range of major currencies to avoid exchange rate fluctuations biting in to the capital.

Find out more

If you are considering a QROPS and want to know if Malta is your right financial jurisdiction, contact us today.

Key Points

  • Malta has a long reputation for political and economic stability, is a full member of the EU, and enjoys double taxation treaties with many leading nations.
  • Malta QROPS, therefore, offers all the benefits of offshore pension planning without the risk associated with some other financial centres.
  • Its QROPS are regulated by the Malta Financial Services Authority and offer 0% inheritance tax, up to 30% as a tax-free lump sum, and a wide range of investment opportunities.
  • The island also offers ‘third party’ QROPS, allowing investors to live anywhere they wish.