The Azure Retirement Benefit Scheme (QROPS)
For pensions valued above £100,000. The Azure Retirement Benefit Scheme is licensed and regulated as a Personal Retirement Scheme by the Malta Financial Services Authority (MFSA). It meets the requirements set out by HMRC to operate as a QROPS.
This scheme is a trust-based QROPS.
Malta QROPS | Key Information
| Investment Options | Open architecture |
| Benefit commencement | 55 years of age |
| Maximum lump sum | 25% |
| Malta tax rate applicable to pension* | Upto 35% |
| Death Benefits |
The taxation of the death benefits depends on the beneficiary’s country of residence and the amount of time the deceased had been non-UK resident at the date of death.
*Maltese tax will not apply where the pension taxing rights are granted to the member’s country of residence under the terms of a double taxation agreement.
About QROPS
On moving abroad many British expatriates will have left their UK pension arrangements in place. These pensions remain subject to UK pensions law. As a result, the pension income may be subject to UK income tax (20% deducted at source). Additionally, the UK investment restrictions relating to pensions would apply indefinitely and the member payment charges (up to 55%) may apply on death.
Under UK legislation introduced in 2004, effective from April 2006, expatriates or UK residents who have a demonstrable intention to move overseas may transfer the value of their UK pension rights to a non–UK pension scheme and thus potentially avoid most of the normal restrictions imposed on the pension fund if it remained in the UK. The transfer must be made to a Qualifying Recognised Overseas Pension Scheme (QROPS) that is recognised by HM Revenue & Customs (HMRC).
Malta Pensions Contacts
Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
