First, let’s deal with the acronym. QROPS stands for Qualifying Recognised Overseas Pension Scheme. They were introduced in 2006 as part of a huge reform in UK pension legislation.
So what are QROPS for, and why might you benefit from one? You can read further information on the HMRC website
Retirement planning for expats
If you are planning to be resident outside of the United Kingdom for at least 5 years, a QROPS is worth a look. When it comes to financial products, most people are loyal customers, not seeing the need to shop around when you already have a pension. But such loyalty could be costing you dearly.
Before the tax reforms in 2006, transferring your pension outside of the United Kingdom was practically impossible without incurring a large tax charge. Now, however, if you transfer your pension assets into a QROPS, you can switch to a foreign scheme that better fits your needs without paying a significant amount of tax.