QROPS USA: Can you benefit?

If you hold a British pension and are either planning to move or have moved to America, there are significant benefits of transferring your pension fund into a Qualifying Recognised Overseas Pension Scheme (QROPS).

The schemes are open to three types of British pension holders aiming for America: US citizens returning to the UK, British nationals who are moving to America to live, and international workers who have worked in the UK and are now moving Stateside.

The benefits include increased investment flexibility, greater pension income, and the ability to mitigate tax.

However the process has not always been smooth sailing, and previously individuals who have transferred their UK pensions and accessed the funds in America have had to pay large tax fines – as the proper due diligence was not carried out.

What to watch out for

Initially, the problems were triggered by the legal structure of UK pensions, as they do not match the requirements of the US Internal Revenue Service (IRS).

However by using an intermediary jurisdiction, this problem can be avoided – with Malta being cited as the safest and most regulated jurisdiction for an individual’s UK pension pot.


Malta is a full member of the European Union, and its pensions industry operates under the Malta Financial Services Authority, making it a stable and regulated desitintation for your pension fund.

With regards to your British pension and your move to America, the QROPS itself gives many advantages, including:

  • 30% tax-free lump sum upon retirement.
  • No tax on fund growth or benefits in Malta (as tax will be paid in the USA).
  • Much wider investment choice to grow your fund.
  • Receive income in US dollars (and not sterling – thus avoiding currency rate fluctuations).
  • Ability to use your foreign tax credits to offset the transfer’s taxable income.
  • The ability to pass on your fund to your loved ones upon death.

How to find your perfect solution

Due to the complications and potential liabilities, it is essential you consult an adviser with a proven track record of dealing with USA QROPS transfers.

To this end, the advisors at QROP.org have a clear advantage; being one of only a few international financial advisories with office in the UK and holding a long track record of successful UK pension transfers.

To be put in touch with an advisor, please use the Contact Form, and receive a no obligation review of your pension and options.