Home Economy US Residents Flocking to QROPS in Malta

US Residents Flocking to QROPS in Malta

Malta QROPSOverseas pension providers based in Malta have witnessed a huge surge in take-up on Qualifying Recognised Overseas Pension Schemes (QROPS) over the last 12 months. Some have reported an increase in business of up to 190%, although for most the increase averages out at a far more modest 130%.

This spike in popularity is down to the huge publicity that the Double Taxation Agreement between Malta and the US has been receiving. This DTA allows anyone with a green card, permanent residence of an affiliation with the US to transfer their UK-based pension into a QROPS based in Malta, and suffer no abject consequences in relation to the IRS.

Previously, it was thought to be practically impossible to bring a UK pension into the US – either via entire transfer, or drawdown once retired – without the majority being swallowed up by the IRS. The US federal body have the view that the UK is excessively generous with their pension offerings, and as such they do not recognise these schemes as being compatible with their own.

There were many difficulties for those opting to retire in the States. Nobody was really sure how much they would have to pay to the IRS in tax once they started to draw their pension, and for many, it meant the dream of retiring in Florida had to be sacrificed. Uncertainty in retirement is not appropriate for most approaching this stage of their lives.

Come Together

Recognising the issue, a group of providers came together to work out a solution, and created a compliant QROPS based out of Malta which ticks every box the IRS has. With it Double Taxation Treaty in place, Malta had the advantage, but when put together with its economic stability, the standard of financial regulation being extremely high and its EU membership, there was really nowhere else to look.

As a result, many providers have moved into Malta to meet the demand the country is suddenly trying to meet. To take retirement in the US and not have to pay tax on any income, conversions or maturity is something that most thought impossible up until a few years back. Now the pension schemes to help British expats get their savings out of the deficit-laden and frankly unstable British pension market are most certainly here for good.


There are many benefits to transferring a UK pension into a Maltese scheme as a US resident, these include:

  • Investment growth not subject to US Federal Tax
  • 30% lump sum available tax-free upon retirement
  • Offsetting foreign tax credits to match against any pension income normally subjected to tax
  • No UK inheritance tax upon death
  • Currency fluctuations avoided by pension being held and distributed in dollars
  • Wide range of investment choices

These schemes are being taken up by a large proportion of UK pension holders, from those who plan to retire in the US and already live anywhere outside the UK, US nationals who hold pensions in the UK from their time there, and green holders with citizenship from anywhere in the world with a UK pension.

Taking Control

With so much uncertainty surrounding exactly what the future of the UK pension market is, now is seen as the time to start thinking about the possible connotations of leaving savings in the UK. It’s widely seen as a huge risk as two things are now certain: retirement age will be pushed back, and benefits will be eaten away and decreased by the $1 billion deficit.

Transferring into a QROPS should only be done with a professional Financial Advisor who has exemplary experience of the US market and a solid background knowledge of the individual’s circumstances.

Saeed Maleki
Saeed Maleki
As the former co-founder of "Yazd Zamaneh" publication (زمانه یزد), Maleki is one of the most experienced reporter working for Pars Herald. Saeed started Zamaneh in cooperation with two local publications on 2007. Two years later he closed his news corporation due to post-election protests in which he was accused of agitating people to demonstrate against Iranian government. On the same year he joined Pars Herald Group as the Economy writer. He is currently studying in Yazd's Payam Nour University perusing his bachelor degree. City: Yazd Phone Number: +989127906398 Email: Saeed {at} ParsHerald.com Name in Persian: سعید ملکی

Stay Connected


Must Read

Huachuma – A Guide to the Plant Medicine San Pedro

Huachuma also known traditionally as The San Pedro Cactus, can be found throughout the Andes Mountains as they stretch across the South American countries...

Huachuma – A Guide to the Plant Medicine San Pedro

Huachuma also known traditionally as The San Pedro Cactus, can be found throughout the Andes Mountains as they stretch across the South American countries...

How Safe Is A Visit To The Caribbean?

Expats, tourists and business people visiting the Caribbean may well worry about their safety after a seemingly endless series of warnings and alerts over...

Periodic Table Is Elementary For Scientists

Scientists are in their element as they celebrate the 150thanniversary of the periodic table. The table has tortured physics and chemistry students trying to learn...

Related News

Rate Your Income In The World Pecking Order

So where does the proposed state pension of £140 per week put you in the world’s pecking order of salaries? The flat-rate payment of £7,280...

QROPS Are Not A Get-Rich-Quick Pension Solution

A Qualifying Recognised Overseas Pension Schemes (QROPS) sounds like the ideal solution to drawing down a pension in cash and escaping without paying any...

CIA Releases Area 51 Papers – But No Mention Of Aliens

The US government has finally admitted the existence of the infamous Area 51 in the Nevada desert that has spawned stories of captured alien...

QROPS For Non Residents Indians With UK Pensions

QROPS, short for Qualifying Recognised Overseas Pension Schemes are specialist, tax-effective offshore pensions for Non-Resident Indians with British pensions. Non Resident Indians (NRIs) are a...

India And US Squabble Over Diplomatic Privileges

Expats have been kicked out of leisure facilities at the US Embassy in New Delhi, India, as the governments row over diplomatic status in...


Please enter your comment!
Please enter your name here