It’s easy to look at the list of exotic locations on HM Revenue & Customs (HMRC) list of Qualifying Recognised Overseas Pension Schemes (QROPS) and wonder which is best.
With a list of 65 close typed pages and 3,673 QROPS to choose from, the market seems confusing.
However, a systematic approach with input from a suitably qualified and experienced international IFA will soon chop the list down to a more manageable length.
For a start, hundreds of the QROPS are only open to corporate employees or are individual pension schemes.
Picking a QROPS provider
Then, rather than picking a location, you and your IFA should make a list of retirement goals and tax considerations – like where you intend to live when you leave the UK.
This will whittle the list down even more.
The tables below identify the top 10 QROPS financial centres by number of QROPS.
They also show which have been the most active by opening or closing schemes over the past 12 months.
HMRC does not indicate the value of funds in each jurisdiction.
Only 45 countries offer QROPS worldwide, and of those, only a handful allow expats to station their pensions in that jurisdiction and then live elsewhere. These are called ‘third party’ QROPS.
| Top 10 QROPS Tables - February 1, 2015 | ||
|---|---|---|
| Count of QROPS pensions | ||
| Values | ||
| Jurisdiction | February 1, 2015 | February 17, 2015 |
| Australia | 1604 | 1609 |
| Ireland | 779 | 779 |
| Isle of Man | 231 | 231 |
| Jersey | 139 | 140 |
| Switzerland | 139 | 139 |
| Netherlands | 119 | 119 |
| Canada | 94 | 94 |
| Guernsey | 88 | 89 |
| New Zealand | 59 | 59 |
| Germany | 55 | 55 |
| Total: | 3307 | 3314 |
| Market share by number of QROPS | ||
| Jurisdiction | February 15, 2014 | February 17, 2015 |
| Australia | 40.22% | 43.74% |
| Ireland | 22.42% | 21.24% |
| Isle of Man | 7.09% | 6.30% |
| Switzerland | 4.10% | 3.79% |
| Jersey | 4.07% | 3.79% |
| Netherlands | 3.23% | 3.25% |
| Canada | 3.02% | 2.56% |
| Guernsey | 1.84% | 2.40% |
| New Zealand | 1.66% | 1.61% |
| Germany | 1.69% | 1.50% |
| Total: | 89.35% | 90.18% |
| QROPS additions | ||
| Jurisdiction | Change since February 17, 2014 | |
| Australia | 271 | |
| Ireland | 36 | |
| Guernsey | 27 | |
| Netherlands | 12 | |
| Gibraltar | 12 | |
| Jersey | 4 | |
| New Zealand | 4 | |
| Malta | 3 | |
| Switzerland | 3 | |
| Latvia | 2 | |
| Italy | 2 | |
| Luxembourg | 2 | |
| Liechtenstein | 1 | |
| Norway | 1 | |
| Falkland Islands | 1 | |
| Belgium | 1 | |
| South Africa | 1 | |
| Denmark | 1 | |
| Kosovo | 1 | |
| Kenya | 1 | |
| Total: | 386 | |
| Delisted QROPS | ||
| Jurisdiction | Change since February 17, 2014 | |
| India | -15 | |
| Canada | -6 | |
| Isle of Man | -4 | |
| France | -4 | |
| USA | -2 | |
| Germany | -1 | |
| Sweden | -1 | |
| Total: | -33 | |
| Source: HMRC | ||
| Note: These are net figures after listings and delistings | ||
