The Qualifying Recognized Overseas Pension Scheme (QROPS) came into effect on 'A' Day, April 6, 2006 due to changes in EU regulations allowing freedom to work anywhere within Europe, leading to freedom of the movement of pensions.
The basic idea behind a QROPS is that because you are no longer resident in the UK, you no longer should have to pay tax on your hard earned pension. QROPS are designed soley in mind for those who no longer wish to retire in the UK.
However, QROPS are not your only option and you need to speak with an independent financial advisor to see if your pension is better off where it is or whether you should move into a QROPS or a SIPP (Self Invested Pension Plan).
Which QROPS plan should I choose? Which is the best QROPS plan?
Unfortunately, all QROPS plans are not created equal and you really need to seek advice from QROPS specialists. The rules, regulations and administration of the schemes will differ from country to company. Only experienced advisors will be able to guide you toward a scheme which will suit your needs. Make sure that the qrop scheme which is suggested is recognized by the inland revenue, Her Majesty's Revenue & Customs (HMRC). Your qrop specialists will be able to advise you in this area.
Do I need to move my QROPS to the country where I will be living?