QROPS for UK Expats

What Is a QROPS and Who Is It For?

If you’ve built up a pension in the UK and now live overseas, you have more choices than most people realise. One of them is a QROPS, a Qualifying Recognised Overseas Pension Scheme: an overseas pension scheme that meets HMRC’s requirements to receive transfers from UK pensions.

For some expats, a QROPS can simplify retirement planning, particularly if they plan to stay abroad long term and want their pension held in a currency or country that matches their life. For others, it adds cost and tax risk without a clear benefit. A transfer can also be hard to reverse, so the decision should rest on your own circumstances, not a general rule.

This guide explains how QROPS transfers work, what the 25% overseas transfer charge means, who they may suit and what to watch for. It is part of our guide to UK pensions for expats. Last reviewed.

How a QROPS Transfer Works

1. Review your current pensions. List what you hold, what each scheme is worth, and what benefits you could lose by leaving, especially in final salary schemes.
2. Get advice. Advice is strongly recommended before moving a UK pension abroad. Our guide to expat pension advice explains how a review works.
3. Check the receiving scheme. Confirm that it qualifies as a QROPS and that the provider is properly authorised where it operates. Appearing on HMRC’s published list of recognised overseas pension schemes is not an endorsement. It only shows the scheme manager has told HMRC the scheme meets the conditions, so you still need to do your own checks.
4. Check the tax position. Work out whether the 25% charge applies, based on where you live and where the scheme is based.
5. Your UK provider processes the transfer. They’ll ask for specific information and may run their own checks. Our expat pension transfer guide walks through the process.
6. Keep both schemes informed. If you move country later, tell both schemes, because the charge can apply at that point.

The 25% Overseas Transfer Charge

When you transfer a UK pension to a QROPS, HMRC can charge 25% of the transferred value. Whether it applies depends on your circumstances at the time of the transfer, and the liability can fall on you personally.

The charge does not apply if one of these exclusions is met:

• You live in the same country as the QROPS. For example, you are resident in the country where the scheme is established.
• The QROPS is an occupational pension scheme and you work for the sponsoring employer.
• The QROPS is set up by an international organisation and you work for that organisation.
• The QROPS is an overseas public service pension scheme and you work for a participating employer.

Things that catch people out

• The EEA exclusion has ended. Many guides still mention a rule for transfers within the EEA or Gibraltar. It only covered transfers requested before 30 October 2024 and completed before 30 April 2025, so you cannot rely on it now.
• You must give information first. You must give your UK scheme administrator the required details before the transfer. Without them, the exclusions do not apply.
• There is a cap even with an exclusion. If you meet an exclusion but the transfer is above your overseas transfer allowance (currently £1,073,100), the excess is charged at 25%. The allowance is reduced by earlier transfers and by lifetime allowance you had used before 6 April 2024, when the lifetime allowance was abolished.
• Moving country can trigger the charge later. If you stop meeting an exclusion, for example by moving to another country, a charge can arise. You must tell both schemes, and the receiving scheme must report to HMRC within 90 days.

This is general information, not tax advice.

When a QROPS May Suit You, and When It May Not

A QROPS is not better or worse than leaving your pension in the UK. In most cases the UK pension can stay where it is and be paid to you abroad, so the question is whether moving it improves your position enough to justify the cost and risk.

It may suit you if:

• You plan to stay abroad long term, and holding your pension in the country or currency you live in matters to you.
• You live in the country where the QROPS is established, so the 25% charge does not apply.
• You work for an international organisation or an employer with its own occupational scheme, and an exclusion applies.
• You hold several UK pensions and want them in one place with one set of charges.
• Your investment needs differ from what your UK providers offer, and you have a clear reason for the change.

It may not suit you if:

• You expect to return to the UK. A transfer can be hard to reverse, and moving country can trigger the charge.
• You have a defined benefit (final salary) pension. You would give up a guaranteed income (see final salary pension transfers for expats), and regulated advice is required before transferring safeguarded benefits worth £30,000 or more.
• The 25% charge applies and you have no clear benefit to offset it.
• Your pension is small, so ongoing charges could outweigh any gain.
• You move between countries often, because each move can change whether an exclusion applies.
• Someone has contacted you unprompted about a transfer. Treat that as a warning sign, not an opportunity.

Neither list is complete. Your age, health, other pensions, tax position in your country of residence and plans for retirement all matter. That is why a transfer should start with advice about you, not a general rule.

Risks, Costs and Scams to Watch For

Costs to expect

A QROPS can carry several layers of cost, and you should see all of them in writing before you transfer:

• advice fees for the initial review and any ongoing service
• the QROPS provider’s set-up and annual charges
• investment and platform charges inside the scheme
• currency conversion costs if the money is exchanged
• the 25% overseas transfer charge, if no exclusion applies

Risks beyond cost

• Tax where you live. The country you live in may tax a QROPS differently from a UK pension. Check this before you transfer, not after.
• Different protections. An overseas scheme may not come with the same compensation or complaints routes as a UK pension. Ask what applies before you commit.
• Giving up guarantees. Leaving a final salary scheme means giving up a guaranteed income for life.
• Hard to undo. Once the money has moved, reversing a transfer is rarely simple.

Pension scam warning signs

• unexpected contact about your pension, including cold calls, emails, texts or social media approaches
• a “free pension review” (professional pension advice isn’t free)
• guaranteed returns, or promises of better returns
• pressure to act quickly or sign documents on the spot
• unusual investments you can’t easily verify, often overseas, such as property, forestry or energy bonds
• complicated structures where it’s unclear where your money goes
• offers to release cash before the normal minimum pension age (currently 55, rising to 57 on 6 April 2028)

Checks before you act

1. Check the adviser or firm on the FCA Financial Services Register.
2. Don’t take advice from whoever contacted you first.
3. Slow down. A genuine offer will still be there next week.
4. Report suspected scams to the FCA (0800 111 6768).

Moving Country After a Transfer

A transfer that was free of the 25% charge when you made it can become chargeable later. If you stop meeting the exclusion that applied, for example by moving away from the country where your QROPS is established, the charge can arise at that point. HMRC’s guidance gives the example of a member who moved from New Zealand to Australia. The rules apply during a “relevant period” of five years from the transfer, plus any time to the next 6 April if the transfer wasn’t made on 6 April.

What you must do

• Tell both schemes. You must tell your UK scheme administrator and the receiving QROPS manager when you become or stop being resident in a country.
• The QROPS manager then checks whether the charge now applies.
• If it does, they report it to HMRC within 90 days of learning of the change.
• Payment is due 90 days after HMRC issues the accounting reference details.

Transfers made under the old EEA rule

If your transfer was sheltered under the former EEA/Gibraltar exclusion, it stays sheltered if you move to another EEA or Gibraltar country within the relevant period.

Why this matters

If you move often, or may move again, a QROPS can carry a hidden tax cost. Plan your next move before you transfer, not after.

Where You Live Matters

Your country of residence affects a QROPS transfer in two ways: whether the 25% charge applies, and how your pension income is taxed afterwards. Both vary by country, so there is no single answer for “expats”. This applies whether you live in Asia, the Middle East, Europe, Australasia or the Americas.

The charge depends on where you live and where the scheme is

The main exclusion applies when you live in the same country as the QROPS. Many QROPS are based in a small number of jurisdictions, such as Malta, Gibraltar, the Isle of Man and Guernsey. If you live elsewhere, for example in Hong Kong, Malaysia, Singapore, Thailand or the UAE, that exclusion would not apply to a transfer into one of those schemes, so the charge would need to be weighed against any benefit. A few countries have local schemes that qualify as QROPS. Whether one exists for you has to be checked against HMRC’s list.

Tax on your pension income

How a UK or overseas pension is taxed depends on your country of residence and, in many cases, on a double tax treaty with the UK. Treaties differ, and rules change. Some countries tax pension income in full, some partly, and some not at all, so the same transfer can leave one person better off and another worse off.

Where to read more

• Pension options for expats in · · · · [UAE]

If you are not sure how your country treats UK or overseas pensions, speak to us before any transfer.

Alternatives: Leaving It in the UK, or an Expat SIPP

A QROPS is one of three broad routes. The other two keep your pension in the UK.

Leave it where it is

For many expats, this is the simplest option. Most UK pensions can still be paid to you while you live abroad, and no transfer means no 25% overseas transfer charge. The trade-off is that the investment choices may be narrower than you’d like.

Move it to an expat SIPP

A Self-Invested Personal Pension (SIPP) is a UK pension that gives you more control over how the money is invested. Some providers offer investments and currency options suited to people living overseas. Because the pension stays in the UK, UK pension tax rules continue to apply, and the overseas transfer charge doesn’t arise. Costs vary by provider, so compare them carefully. Read more in our expat SIPP guide.

How the three compare

No option is best for everyone. Which one fits depends on your plans, where you may live and the size and type of your pension. Protecting your family is a separate question: see our expat insurance guide.

Frequently Asked Questions

1. What does QROPS stand for?
Qualifying Recognised Overseas Pension Scheme. It’s an overseas pension scheme that meets HMRC’s requirements to receive transfers from UK pensions.

2. Is the 25% overseas transfer charge always payable?
No. It doesn’t apply if an exclusion is met, such as living in the same country as the QROPS, or a transfer to an occupational scheme run by your employer. Transfers above your overseas transfer allowance can still be charged even when an exclusion applies.

3. Does the EEA exclusion still apply?
No. It only covered transfers requested before 30 October 2024 and completed before 30 April 2025.

4. Can I transfer my UK State Pension to a QROPS?
No. The State Pension is paid by the government, not held in a pot you can move. If you’ve paid enough National Insurance contributions, you can claim it while living abroad and have it paid into an overseas or UK bank account.

5. Can I transfer a final salary pension to a QROPS?
Sometimes, but you’d give up a guaranteed income. Regulated advice is required before transferring safeguarded benefits worth £30,000 or more.

6. What happens if I move country after a transfer?
A charge can arise if you stop meeting the exclusion that applied. You must tell both schemes, and the QROPS manager must report to HMRC within 90 days.

7. Does being on HMRC’s list mean a QROPS is safe?
No. HMRC doesn’t endorse or guarantee listed schemes. The list shows that a scheme manager has told HMRC the scheme meets the conditions, and a scheme that doesn’t actually qualify can trigger tax charges on transfers into it. Check shortly before any transfer, and carry out your own checks.

8. How do I check my adviser is genuine?
Check them on the FCA Financial Services Register. Be wary of anyone who contacted you first, and never take advice from the company that approached you.

9. Can I just leave my pension in the UK?
Yes. Most UK pensions can be paid to you abroad, and leaving it avoids the overseas transfer charge. Whether that’s best depends on your plans and the type of pension.

10. Do I need advice before transferring?
It’s strongly recommended. A transfer can be hard to reverse and the tax outcome depends on where you live.

Considering a Transfer?

Speak to us first. We’ll look at your pensions, where you live and where you may move, before anything is transferred. Book a call

Risk warning: The value of investments can fall as well as rise. Tax rules can change and depend on your circumstances.