The Multi-jurisdictional QROPS solution
Following HMRC's comprehensive clean-up, the QROPS market has been left with two key players: Malta and Gibraltar. STM Group was one of the first multi-jurisdictional QROPS providers, and in its position as a provider of schemes in both jurisdictions, believes that between them, these jurisdictions cover all your QROPS needs.
With over 70 Double Taxation Agreements (DTAs), Malta has emerged as the number one jurisdiction of choice for advisers and clients. Malta maintains a strong relationship with the UK tax authorities and boasts a stable jurisdiction, EU membership, and has English as one of its official languages.
Gibraltar shares many of these plus points. Also English-speaking, Gibraltar came out of talks last year with a clean bill of health as an HMRC recognised jurisdiction. Consequently, Malta and Gibraltar are now able to complement each other and provide a QROPS solution which is most suitable for your client.
As comprehensive as the Malta DTAs are, if there is no agreement between Malta and the client's country of residence, they could be charged up to 35% tax withheld at source in Malta. In this scenario, Gibraltar, where withholding tax is just 2.5%, appears to be the more obvious choice.
So with all requirements covered by either one or the other jurisdiction, plus the fact that STM Group offers a fee-free QROPS transfer between jurisdictions should circumstances change (for example if your client takes a Malta QROPS, but in time decides to move to a new country of residence which doesn't share a DTA with Malta), your client needs simply to decide on their pension priorities.
Ultimately, country of residence (and consequent taxation) plays the largest part when choosing between Malta and Gibraltar for your client's QROPS.
For more information, please contact:
T: 00350 200 45877
T: 00356 213 33211