Gibraltar QROPS Jurisdiction, which includes the rules and tax treatments, main picture
For those considering a transfer of their UK pensions abroad they have a wide selection of Qualifying Recognised Overseas Pension Scheme (QROPS) providers to choose from based in a range of jurisdictions. To enable you to select the best QROPS provider you should first determine the most appropriate QROPS jurisdiction according to your requirements. What follows is an in depth look at the QROPS jurisdiction of Gibraltar including current rules, tax implications, and HMRC’s list of Gibraltar QROPS providers.

QROPS Gibraltar key facts

Gibraltar pension rules

  • The minimum retirement age is set at 55 except on grounds of ill health
  • Up to 30% can be taken as a tax free lump sum
  • No tax on growth (income or capital gains)
  • No inheritance tax
  • No death tax
  • Flat rate tax on withdrawals of 2.5% (For those who return to the UK they are entitled for unilateral relief on this amount)
  • Withdrawals are limited based on actuarial rules
  • There is currently no intention to bring in the full flexibility arrangement available in the UK. However, actuarial calculations can be used to determine the allowable annual withdrawal limit should this offer a higher figure compared against the more usual 150% of GAD/annuity rates. It is important to note that the greater of the two is the absolute maximum and withdrawing the full amount annually could lead to financial hardship in later years.
    Should you decide to enter pension drawdown, withdrawing income as and when required, instead of purchasing an annuity then there are no guarantees that your money will prove to be sufficient. It is therefore important to match your income requirements to your provisions. Please contact us for further information if necessary

All QROPS must abide by Gibraltar & the UK’s Her Majesty’s Revenue and Customs (HMRC’s) rules. All of the above Gibraltar rules can be applied unchanged to QROPS with the provision that a pension holder has been non-UK resident for 5 full tax years. When this is not the case UK pension rules and tax rates apply.

In addition to the above, Gibraltar charge residents 0% tax on any pension income they receive if they are either over 60 years of age or have been forced to retire after age 55. This does not affect QROPS provisions in anyway. It was, in fact, the rate that QROPS were previously charged and the only reason it was amended to 2.5% was due to HMRC deeming that the nil rate tax was insufficient to comply with their rules.

HMRC’s QROPS list of Gibraltar providers

The QROPS list of recognised overseas pension providers is currently updated bi-monthly. The usual caveats of the list being self certified and not to be trusted to prevent an unauthorised payments charge continue to apply. Bearing this in mind, the latest list of Gibraltar QROPS providers can be found here.

Double Taxation Treaties

Gibraltar works on a low flat rate tax system and has no Double Taxation Agreements in place. In its place are Tax Information Exchange Agreements to enable the facilitation of improved tax cooperation between the applicable countries with the aim of preventing tax evasion. These are one of the measures Gibraltar uses to improve its international standing and to disassociate itself with tax havens. The countries that have signed are as follows;

Jurisdiction Status of Tax Information Exchange Agreement
Australia Signed and in force
Austria Signed and in force
Belgium Signed and in force
Denmark Signed and in force
Faroe Islands Signed and in force
Finland Signed and in force
France Signed and in force
Germany Signed and in force
Greece Signed 31st of Jan 2013 though in pending (not active)
Greenland Signed and in force
Guernsey Signed and in force
Iceland Signed and in force
India Signed and in force
Ireland Signed and in force
Italy Signed and in force
Malta Signed and in force
Mexico Signed and in force
Netherlands Signed and in force
New Zealand Signed and in force
Norway Signed and in force
Poland Signed and in force
Portugal Signed and in force
South Africa Signed and in force
Sweden Signed and in force
Turkey Signed 4th of Dec 2012 though in pending (not active)
United Kingdom Signed and in force
United States of America Signed and in force

[Total: 18    Average: 3.1/5]


Finding the best QROPS. Gibraltar as a QROPS jurisdiction examined written by Liberty Wealth average rating 3.1/5 - 18 user ratings