Example when QROPS is a good idea

Contact John now on (+34) 96 558 7633 / 618 204 731 or john.hayward@spectrum-ifa.com


A Client is aged 65 and lives in Spain and has done for more than 5 full UK tax years.

The client has no intention to return to the UK.
The client wishes to take the maximum Pension Commencement Lump Sum (PCLS) and immediately draw an income from the remaining pension fund.
The existing UK pension scheme is a Money Purchase Scheme and does not have any guarantees attached to it.
The client is being charged 1% per annum plus annual fund management charges by his UK provider and the pension has a transfer value of £200,000.

Following a detailed analysis of his UK scheme, including the cost and tax implications, the client decides to go ahead with a transfer under the QROPS provisions to a Malta registered and recognised provider.

The QROPS costs start from £300 set up fee for smaller cases and £500 per annum (in many cases there is no set up fee).
The investments are administered for a cost of 1% per annum plus annual fund management charges.
He then draws an income of up to 150% of UK GAD rates, which is paid to him gross by the Maltese QROPS provider, as Malta has a Double Taxation Treaty in place with Spain. He declares this income on his Spanish Tax return.
The funds used in his portfolio are all purchased without initial charges or commissions. They are all daily traded and none are subject to any penalty charges if they are sold.
The funds purchased to provide income are managed by some of the very top investment houses in the business; for example,  BlackRock, JP Morgan Asset Management , Jupiter Asset Management, Kames Capital and Henderson Global Investors.


  • The additional costs are the £645 set up fee and £845 annual charge (or lower fees depending on the size of the fund involved) .


  • The client is able to mitigate potential currency risks.
  • Increased Flexibility (i.e. a normal Personal Pension Plan does not allow drawdown)
  • Consolidation of pension plans making them easier to manage

Free Pension Analysis

If you have a pension or number of pensions in the UK and want to know what your options are then please do not hesitate to contact me on (+34) 96 558 7633 or complete the contact form to the right. john.hayward@spectrum-ifa.com for a free no obligation analysis of all your pensions.