QROPS in Spain

Spain remains one of the favourite destinations for British expats, particularly in retirement. Yet a poor exchange rate and rising cost of living have meant that pensions from the UK have dwindled in value for expats in Spain over recent years.

Make the most of your retirement with a QROPS

If you are a retiree living in Spain with a British private pension, a QROPS can help your money go much further than keeping it in the UK.

When you live in Spain for more than five years, there are numerous benefits to transferring your pension into a QROPS.

Advantages of a QROPS in Spain

As a British expat living in Spain, a QROPS arranged through STM allows you to:

• Receive your pension income into your Spanish bank account in local currency, making you less vulnerable to currency fluctuations and the current poor exchange rate with sterling
• Avoid paying UK tax on the fund
• Pay income tax at rates as low as 4.32%
• Choose the jurisdiction where your QROPS is held, to find the one that suits you best
• Easily access our advisors in Spain and Gibraltar, making it simpler to manage your finances
• Avoid UK inheritance tax
• Pass the fund on to your beneficiaries upon death

Is a QROPS right for me?

As long as you plan to live in Spain for more than five years and have over £100,000 to invest, then a QROPS is an excellent solution.

You’ll receive income in euros, avoiding exchange rate and cost of living issues. And as long as you hold a Spanish residency certificate (certificado de residencia fiscal NEN – Espana Convenio) for tax purposes, you won’t need to pay UK tax on the fund.

Instead, you’ll pay Spanish tax rates after five years of residency, currently between 24% and 43% on income over the personal allowance of between 2,600 euros and 4,000 euros.

If you use your QROPS to buy a whole of life annuity (renta vitalicia), however, tax rates can be as low as 18% on 24% of income – effectively just 4.32%.

Find out more about QROPS in Spain

Please contact STM QROPS for a no-obligation discussion to find out more about the advantages of a QROPS in Spain.