Why Gibraltar?


Gibraltar was approved as a jurisdiction for Qualifying Recognised Overseas Pension Schemes (QROPS) by the UK tax authority (HMRC) in 2012. With its low rates of taxation and established financial services industry, Gibraltar has since become one of the leading jurisdictions for international pensions provision.

Gibraltar offers a pragmatic operating framework that is underpinned by the regulation of the Gibraltar Financial Services Commission. New pension rules were introduced in 2017 to ensure that Gibraltar maintains the highest standards of pension regulation, as well as retaining its status as a ‘recognised’ jurisdiction for QROPS pension schemes.

Sovereign has a long association with Gibraltar and was one of the first companies to receive a professional trustee’s licence. Sovereign Pension Services (Gibraltar) Limited is a founder member of the Gibraltar Association of Pension Fund Administrators (GAPFA), an association of pension providers, pension trustees and other entities with an interest in pension arrangements in Gibraltar.

The Gibraltar Private Sector Pensions Act 2019 was introduced to ensure that every member of the Gibraltar community, including those working in the private sector, is financially protected in their later years. Like the ‘auto enrolment’ pensions regime in the UK, the Act makes it compulsory for all employers in Gibraltar to provide access for all eligible employees to a pension scheme in addition to the existing State Pension.

Should an employee choose to join the pension scheme, the Act also makes it compulsory for both the employer and employee to contribute a minimum amount each week or month (depending on how the employee is paid) to the employee’s pension fund. Gibraltar employees eligible for ‘auto enrolment’ must be over the age of 15, have worked for an employer for one year or more and have gross earnings from that employment of £10,000 or more per year.

To assist Gibraltar employers of any size to meet their new ‘auto enrolment’ pension obligations, Sovereign Pension Services (Gibraltar) Limited can design and set up Occupational (often known as ‘workplace’) Pension Schemes that will satisfy all the Gibraltar ‘auto enrolment’ criteria. We also have the capacity and expertise to administer these pension plans on behalf of Gibraltar employers, such that clients can be assured of the maximum business benefit and the minimum business disruption.

The Gibraltar Financial Services Commission (GFSC) is responsible for establishing and maintaining a ‘Register of Employers Maintaining Pension Plans’. The administrator of a Gibraltar firm’s pension plan is required to inform the GFSC of the choices made by all eligible employees of that firm.

Gibraltar QROPS – Key Information


Gibraltar QROPS – Key Information


Investment Options Open architecture
Benefit commencement 55 years of age
Maximum Lump Sum 30%
Gibraltar tax rate applicable to pension* 2.5%
Death Benefits Lump sum or survivor’s pension

The taxation of death benefits will depend on a beneficiary’s country of residence and the amount of time that the deceased had been non-UK resident at the date of death.

* The pension may also be taxed in the member’s country of residence.

Have a question about Gibraltar Pensions?

Explore Pension Administration Locations


Get in Touch

Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.