Qrops Pensions Dubai
The United Arab Emirates, in particular Dubai, is a very popular destination for British ex-pats. The lively international community combined with hot weather and a favourable tax regime means that you can live out your retirement in complete luxury.
Dubai was originally built on wealth generated by the oil industry, it’s now also a centre for financial services, tourism and great shopping opportunities. Imagine being able to live a five star lifestyle daily.
However if you are retiring to Dubai, what do you plan to do with your pension? If you leave it behind in the UK the British taxman will still be entitled to take his share. When you consider that you’ll be living in a place which is virtually tax free, needlessly handing over your hard earned cash may be a little difficult to stomach.
Advantages Of Living In Dubai And Having A QROPS
One of the main advantages of living in Dubai is having almost no tax to pay, this is where getting a QROPS can really come into its own.
Unlike Spain and France there are no complications or problems with trust structures for QROPS. Therefore the United Arab Emirates seems to be the perfect place to have one.
Alternatively if you do fancy holding your pension elsewhere you will be pleased to know that QROPS can be based anywhere in the world that HRMC approves. This means that you could get a QROPS from a provider placed in a low tax regime, for instance Guernsey, and receive the income in Dubai without having to pay any tax at all. If this sounds a little like having your cake and being able to eat it, then you’re probably right.
Find The Right QROPS For You
If you’ve moved to the United Arab Emirates you may find numerous financial advisers have made contact with you to try and entice you with investment products. The trouble with QROPS is that the HRMC rules surrounding them are very complicated, therefore using a financial adviser in the UAE who has no connection with the United Kingdom, may be risky. Overseas investments products are usually difficult enough but pensions are in a league of their own when it comes to complexity.
If an unregulated adviser happens to get it wrong you could end up with a hefty tax bill to pay and may also be liable for additional penalties. On the other hand a QROPS adviser with a good understanding of HRMC’s rules can certainly help to guide you through the necessary regulations to a lucrative QROPS for a Dubai resident.
For more information, visit the HMRC website here.