Many British citizens dream of retiring abroad and swapping a cold climate for something a little warmer, maybe even tropical. One of the key things all those looking at retirement need to keep in mind is that their pension would need to last for the duration of their remaining years. There are a number of key investments which those entering retirement can look at with the most popular being QROPS.
Apart from the investment benefits of QROPS, retirees who wish to move abroad can save more money on their pension by selecting one of the top listed countries which not only offer ideal retirement surroundings but also low or no income tax on their pensions. If you want to avoid income tax on your pension, here are some of the best places for retirement. A key aspect to remember is that retirement abroad without QROPS can mean that your pension is taxed in the UK at around 20% – 45%. Additionally, you may be subjected to a further tax of 45% should you die after the age of 75. See this link for help and advice on this topic.
To avoid crippling pension taxes more and more retirees are opting to move their pensions to Qualifying Recognised Overseas Pension Scheme or QROPS. When setting up correctly and in the right country you might even find that you will pay no tax whatsoever on your pension. For those who do not want to move too far away from home, here is a list of the best countries for retirement in Europe. These countries also have the best QROPS benefits for retirees.
Not only does Portugal feature amazing coasts and beautiful beaches but retirees opting to make Portugal their new home will be delighted to discover that for the first 10 years of your stay in the country you will not pay income tax on your pension. Additionally, should you move your pension to a QROPS, you will also be able to avoid UK tax regulations.
Beautiful Andorra is perfectly situated between Spain and France. Although retirees will still be subjected to a 10% income tax payment on their pension, by opting to move their retirement funds to a QROPS, retirees will be able to avoid high UK taxes.
Residents of Monaco are not charged any income tax and if you as a retiree want to move to Monaco you will want to avoid being taxed back in the UK. To do this, you need to take up an investment through a QROPS.
The postcard-perfect Maldives situated off the southern tip of India is a dream retirement destination for anyone. If you’re looking for another great reason to move to the Maldives after your retirement you’ll be happy to know that there is no income tax in the country. If you move your pension to a QROPS you will also be able to avoid UK taxes.