Why is Malta one of the best options?
- Malta is an independent, well regulated and internationally accepted jurisdiction with a firm framework of legislation in the financial services sector
- Pension providers on the island have worked closely with Malta Financial Services Authority to ensure a robust QROPS offering for both its resident and international clients
- It is a European Union country which allows tax-efficient structures. This means that income and capital gains from the assets within your plan are not subject to Malta tax. Therefore, the assets within your plan grow in a tax efficient environment
- Your QROPS fund can be denominated in a common currency (British Pounds, US Dollars or Euros etc)
- Although Malta is a completely independent EU Country, its rules and regulations are extremely similar to those in the UK.
Malta is in the EU, is protected by EU laws and a QROPS in Malta is very much more protected than in a non EU country. The regulations in Malta are very strict. For example a full audit is required every year is required. In our case this is carried out by Griffiths and Associates. This audit is of the pension scheme, and the Retirement Scheme Administrator – MC Trustees (Malta) Limited. Inspections are carried out by the Malta Financial Services Authority and there is regular contact with this regulator.
But why is Malta a more efficient place to have my pension than elsewhere?
Malta regulations allow you to take up to 30% of your funds as an initial lump sum, and your pension from age 50. If you transfer a UK scheme to the QROPS the maximum lump sum is 25% and you can take benefits from age 55. In addition, larger funds may take advantage of the Programmed Withdrawals provisions and take further lump sum payments. QROPS funds can take advantage of UK style flexible benefit rules rather than a fixed income.