Maltese pension schemes eligible for Qrops recognition

Pension schemes established in Malta and regulated by the Malta Financial Services Authority may be considered on a case by case basis for Qualifying Recognised Overseas Pension Schemes under UK Law.

The MFSA said in a statement that this was confirmed by HM Revenue & Customs.

A Qrops is a pension scheme set up and regulated outside the UK, recognized by HMRC as broadly equivalent to a UK Registered Pension Scheme.

It allows people who are no longer resident in the UK to transfer pension benefits accumulated in a UK recognised pension scheme to a recognised pension scheme outside the UK.

This can give many employers and their employees more tax flexibility on these benefits, provided certain requirements are met. The same advantages apply to individuals no longer resident in the UK who receive benefits from their personal pension schemes.

The MFSA is currently processing a number of applications for the registration of retirement schemes under the Special Funds (Regulation) Act. Once authorised under this Act, pension schemes may apply to the HMRC to be a Qrops.

The scheme manager must confirm that the scheme fulfils the requirements for being a “recognised overseas pension scheme”.

Qrops recognition came following discussions between HMRC, the Maltese Inland Revenue and the MFSA over the past months. The MFSA said that this is a significant development for Malta indicating that the strong reputation of the Maltese financial services industry coupled with the fact that Malta is an English speaking country, had already generated a lot of interest in this area.