Maximise Your Income With a Spanish QROPS

Many thousands of UK pensioners retire to the Spanish sunshine every year, and have to make some complex decisions about their UK workplace pensions to provide them with an income in Spain. Many opt to switch their UK pension funds into a Qualifying Recognised Overseas Pension Scheme (QROPS) which can have considerable benefits.

Ability to control tax paid on income – if you keep your UK pension, income will be taxed as income is produced on an arising basis. Switching funds into a QROPS for those permanently resident in Spain means that you’re able to exercise a greater degree of control over when pension income is received. This isn’t of benefit to everyone, however, (and especially for higher rate tax payers) this can be an invaluable tax planning tool. We can give you concrete, independent advice based on your individual circumstances.

Possible larger tax-free lump sum – UK pensions allow you to take up to 25% of your fund as a tax-free lump sum. Switching into a QROPS, and you could take up to 30% as a lump sum – depending on how this is considered for local Spanish taxation.

More flexibility for your dependents – setting up a QROPS while you’re living in Spain allows you more flexibility over what happens to your money in the event of your death, once you’ve been resident in Spain for five years. Our award-winning experts can give you impartial advice on how to set this up.

Currency flexibility – In a UK scheme, you ordinarily have no option but to receive funds in sterling. Moving funds into a QROPS means you have choice over which currency to receive funds in. For those living in Spain, payments in Euros can be more appropriate as you can be sure of how much you will receive each month, and are not subject to the ups and downs of the currency markets.

If you’re considering setting up a QROPS in Spain, contact us today for a fee-free initial meeting. We’re UK based, UK Qualified, work on a fee-only basis (unlike most other advisers operating in Spain) and are experts at what we do.


Spanish QROPS – QROPS in Spain


About AES Adviser

AES Adviser advises expatriate clients worldwide on all financial planning matters including wealth management, estate planning, offshore bank accounts, savings and investment, insurance, multi-generational wealth transfer and generating income, from wealth accumulated, to support retirement.