Gibraltar ROPS

  • 30% tax-free cash lump sum known as the PCLS is available at age 55; the rest must provide an income for life
  • 0% tax on growth and death in Gibraltar as long as you remain tax resident outside the UK
  • Flat 2.5% income tax at source
  • Low cost QROPS / ROPS available, particularly for smaller pension pots
  • You can choose to leave your pension in GBP or convert to US Dollars or Euros
  • Freedom of choice of investment platforms or wrappers. Choose from thousands of mutual funds, shares, equities, gilts, commodities and precious metal funds
  • The national language is English and has been an offshore financial centre for decades

Gibraltar ROPS / QROPS

What is a Gibraltar ROPS?

A Gibraltar ROPS is a Recognised Overseas Pension Scheme, formerly known as QROPS. The ‘Q’ from qualifying has been dropped from HMRC’s list of overseas pension schemes.

Who is a Gibraltar ROPS suitable for?

A Gibraltar ROPS is suitable for anyone with a private pension in the UK or a private final salary scheme in the UK who wishes to move to retire abroad and wants to get their UK pension out of the UK tax net.

They are particularly useful for those who faces high inheritance taxes and tax on death of their UK pension schemes. Also, for expats who want to transfer their pensions into a different currency such as euros or US dollars.

Who is a Gibraltar ROPS not suitable for?

You cannot transfer UK state pensions into a ROPS.
You cannot transfer public sector pension schemes into a ROPS anymore. The transfers were stopped in September, 2015.
If you have a particularly well funded final salary scheme with high benefits or a small pension plan.

The Benefits of a ROPS in Gibraltar

  • 30% can be taken as a tax-free lump sum. This is known as the PCLS or Pension Commencement Lump Sum
  • 70% must give a pension income for the rest of your life.
  • The pension income is calculated every 3 years and 150% of UK GAD rates is allowed as an annual income
  • You can transfer to the currency of your choice
  • Gibraltar is in the EU. It may make sense to transfer your pension into EUR
  • There is no tax on death
  • It protects you from inheritance tax whilst monies are held within the ROPS
  • Wide range of investments allowed
  • Flat 2.5% income tax on a ROPS in Gibraltar

Differences Between a UK Pension Scheme and a Gibraltar ROPS

  • A UK pension scheme only allows 25% tax-free cash lump sum
  • You have to pay your highest rates of marginal income tax on a UK pension scheme, which could be up to 45%
  • There is a tax on death of any pot left after age 75. This becomes the highest marginal rate of tax of the beneficiary of the pension income
  • A UK pension scheme faces up to 45% income tax and up to 45% tax on death
  • UK pension scheme falls under UK regulations
  • Most UK pension schemes are in GBP only

Please contact us to find out the latest ROPS fees and quotes