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02 Feb, 2012 - Malta in pole position for QROPS
Malta in pole position for QROPS
Following the recent proposed changes for the QROPS legislation, the UK pension transfer business is still very much ‘business as usual’. However, some jurisdiction have grown to become more favourable than others.
Experts in the industry believe that there will be a clearer outcome post ‘Q-day’ on April 6th 2012. Despite speculation that several jurisdictions will not meet the proposed qualifying criteria and may lose their QROPS status at midnight on 5 April, 2012, HMRC has assured that all members in these schemes are protected. Moreover, the new legislation has no adverse tax consequences for clients who are transferring their UK pensions to a QROPS.
On the other hand, countries such as Malta, seem to be increasingly picking up QROPS business thanks to their European Union membership status. Malta’s position remains rather unchanged, which will automatically place it at an advantage ahead of other jurisdictions. In addition, as its low-tax environment and remittance tax basis is accepted within the EU, it also gains an economic, political and legislative advantage. Notably, Malta is also not prescribed to meet the 70% rule, because it qualifies as a QROPS jurisdiction by virtue of its full EU membership.
Furthermore, Malta is poised to take advantage of the cross-border EU pension transfer market, such as EURBS, which the deVere Group pioneered in late 2011.
If you wish to learn more about pension transfers through QROPS or EURBS, speak to a deVere Financial Adviser today.
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