The cheap cost of living and tropical sunshine of The Philippines are a magnet for expats looking to relax after spending hectic time working on oil and gas rigs.
The climate, financial benefits and laid-back lifestyle as well and the warm and friendly locals are the main reasons why so many expats go back to the islands
But the one financial freedom lacking is how to make tax-efficient pension savings as an expat.
Although The Philippines offer an oasis of calm away from work, living abroad as a UK non-resident means expats lose the tax benefits and flexible access options available of saving money in a pension.
Qualifying Recognised Overseas Pension Schemes (QROPS) offer a solution to the problem, but many expats are unaware that they can access these specialist offshore pensions as The Philippines has no provider offering the pensions.
Pension options for expats
However, with the right advice from a professional and experienced IFA can unlock the door to a QROPS for expats overseas with pension cash languishing in the UK.
One of the best retirement savings vehicles for British expats is a Malta QROPS.
Not only do Malta QROPS offer tax and flexible investment benefits to expats, the way pensions are set up and regulated on the Mediterranean island are available in The Philippines even though they may seem half a world away.
Malta QROPS offer a wide range of pension options to British expats, whatever the size of their fund.
From low cost lite funds for retirement savers with small funds to more sophisticated bespoke schemes for investors with larger funds.
One of the main benefits is the ‘third party’ rule that allows anyone living outside Malta to base their pension on the island regardless of where they live and work without incurring extra costs.
That allows expats to set up a base in The Philippines while working in different countries and then to move to a final destination for retirement.
Even the complex pension tax rules of the USA are no issue for Malta QROPS as the island has a double taxation treaty with The States that means the pension fund does not need reporting to the Internal Revenue Service (IRS).
The taxation treaty goes even further and exempts the fund and benefits paid from US income and capital gains taxes.
The key to setting up the right QROPS comes down to seeking advice from the right IFA – and some firms even have local advisers based in Manila.