Is It Possible To Transfer a UK Pension to Belgium?

This guide examines whether you can transfer a UK pension to Belgium. It also outlines compliant pension transfer routes—such as international SIPPs and qualifying recognised overseas pension schemes (QROPS)—and explains how foreign pension income is taxed once you become a Belgian resident.

Which UK Pensions Can You Transfer to Belgium?

UK expats can transfer two types of pensions overseas:

What To Consider Before Transferring a UK Pension to Belgium?

If the value of your DB pension exceeds £30,000, UK regulations require that UK residents obtain financial advice from a regulated pension transfer adviser. While this rule does not strictly apply to non-UK residents, many pension providers still enforce it as part of their due diligence processes.

You are also required to work with a financial advisor if you hold a DC pension with special guarantees, such as a guaranteed annuity rate (GAR), that exceed £30,000. Some pension providers may insist on this requirement regardless of your pension transfer value.

There are two mechanisms for transferring a DC pension:

1. A cash transfer: Involves selling your investments and moving cash to an overseas scheme.
2. An in-specie transfer: Implies transferring your investments to another scheme, although this is only possible if the receiving pension provides access to the exact same assets you hold.

Meanwhile, transferring a DB pension to Belgium includes the following considerations:

• Expats accruing pension benefits in an unfunded public sector DB scheme, such as the Teachers’ Pension Scheme or the NHS Pension Scheme, can’t transfer their pension to Belgium.
• If you transfer a DB pension overseas, you won’t receive guaranteed income during retirement. Instead, your pension entitlements will be distributed according to the rules of the new scheme.

Before proceeding with the transfer, you must obtain the cash equivalent transfer value (CETV)—the monetary value of your pension benefits.

At Titan Wealth International, our pension transfer advisers can ensure that your pension transfer aligns with your retirement goals. We also offer an assessment of your DB pension, which allows us to negotiate a higher CETV if you opt for a transfer.

What Is the Structure of the Belgian Pension System?

The Belgian pension system allows you to access pension benefits once you turn 65. It is structured around the following three pillars:

1. State pension: The public pension is available to individuals who are employed, self-employed, or civil servants under the Belgian social security system. All employees are required to pay approximately 7.5% of their salary to the state pension, while employers contribute an additional 8.86%.
2. Occupational pension: These are pensions provided by employers in companies or industry-wide schemes, often in collaboration with employers’ organisations and trade unions. They can be defined benefit or defined contribution schemes, and they aren’t mandatory.
3. Private pension: If your employer doesn’t provide an occupational pension with total contributions equaling at least 3% of your salary, you are legally allowed to allocate a portion of your salary to a private pension. Private pensions are also available to all individuals who seek to supplement their retirement savings independently.

While you can contribute to a Belgian pension if you are employed or self-employed in Belgium, you can’t transfer a UK pension to a Belgian pension scheme of your choice.

You can only move a UK pension to a Belgian pension plan approved by the UK’s tax authority—His Majesty’s Revenue and Customs (HMRC).

Which Schemes Allow UK Pension Transfers to Belgium?

A qualifying recognised overseas pension scheme (QROPS) is an overseas pension that meets HMRC criteria, enabling UK pensions to be transferred without incurring unauthorised payment charges of up to 40%.

However, a transfer to a recognised QROPS may still be subject to the Overseas Transfer Charge (OTC)—a 25% tax—unless specific conditions are met.

To be exempt from the 25% OTC at the time of transfer, both of the following must apply:

• The QROPS is based in your country of tax residence (or in some cases, in the same country as your employer), and
• You are a tax resident in that same country.

If either condition is not satisfied, the 25% OTC will apply. HMRC may reassess this charge if your residency changes within five full tax years of the transfer.

For UK expats resident in Belgium, a transfer to a Belgian-based QROPS may qualify for an OTC exemption—provided the scheme accepts individual transfers and you meet its eligibility rules.

As of the latest HMRC list, Belgium hosts several recognised QROPS. However, most are employer-sponsored occupational schemes, typically restricted to current or former employees. These include:

• Eurocontrol Pension Fund.
• J&J Pension Fund OFP.
• ING Belgium DC Pension Scheme.
• NATO Defined Contribution Pension Scheme.
• A. Schulman Belgium NV Pension Plan.

These schemes are not generally accessible to individual UK expats without a professional connection to the sponsoring employer.

Before proceeding, always consult the most recent QROPS list and seek regulated advice to assess both eligibility and exposure to the Overseas Transfer Charge.

What Is the Alternative to Moving a UK Pension to a QROPS in Belgium?

The most suitable alternative for UK expats in Belgium is an international self-invested personal pension (SIPP). This scheme provides cross-border pension benefits while allowing you to retain your pension in the UK, where it will remain under the regulation and protection of the Financial Conduct Authority (FCA).

Most international SIPPs accept UK pension transfers. After the transfer, they’re funded through personal payments, although some employers may also choose to contribute. The funds are then invested in various global assets, such as stocks, bonds, cash, and mutual funds, potentially accelerating the growth of your pension’s value.

Advantages and Disadvantages of International SIPPs

There is no cap on the amount you can transfer to an international SIPP, as transfers aren’tconsidered contributions. This allows you to consolidate multiple UK pensions, optimising pension management while residing in Belgium.

International SIPPs also provide the following benefits:

• Tax-efficient withdrawals: During your lifetime, you can withdraw 25% of your pension, up to £268,275, as a tax-free lump sum under the LSA. However, note that this lump sum may be taxable in your country of residence.
• Improved estate planning: These schemes qualify for the lump sum and death benefit allowance (LSDBA) of £1,073,100, meaning you can transfer up to £1,073,100 to your beneficiaries tax-free if you die before age 75. Funds exceeding the available allowance are taxed as income.
• Multi-currency pension access: International SIPPs allow pension withdrawals in multiple currencies, including euros, potentially mitigating currency exchange risks.

Before opting for the transfer, consider the following:

1. Tax relief limits: Expats without relevant UK earnings may receive tax relief on contributions of up to £3,600 gross, provided they were UK tax residents in one of the preceding five tax years and at the time they joined the scheme. If you have relevant earnings, you may qualify for tax relief on contributions equaling up to 100% of those earnings, subject to the annual pension contribution allowance of £60,000.
2. Higher fees: An international SIPP may incur higher costs than your current scheme, as it includes setup charges, administrative fees, and advisory costs.

Pension transfer specialists, like our experts at Titan Wealth International, can help you ensure a seamless transfer of UK pensions to an international SIPP. We can provide personalised advice, tailored to your residency and financial goals, to ensure minimal tax liability upon transfer.

What Other Pension Plans Can You Leverage While Residing in Belgium?

Alongside international SIPPs or QROPS, you may utilise qualifying non-UK pension schemes (QNUPS). They are based in jurisdictions outside the UK, such as:

• Malta
• Guernsey
• The Isle of Man

These tax-efficient arrangements can qualify for a UK pension transfer if they’re classified as a QROPS, but they are primarily used by high-net-worth individuals to accrue additional retirement savings.

Establishing a QNUPS is beneficial for individuals seeking the following benefits:

However, QNUPS usually have higher setup and administrative fees than UK-based schemes, and they aren’t eligible for allowances and tax reliefs that UK schemes qualify for.

How Are UK Pensions Taxed in Belgium?

Belgium taxes its residents on worldwide income, including foreign pensions, whereas non-residents are only liable for tax on income sourced in Belgium.

When both jurisdictions have the right to tax your pension, you can leverage the double taxation agreement between the UK and Belgium to avoid being taxed twice on the same income.

Under the UK–Belgium DTA, your private pensions are taxed only in your country of residence. This means that, once you become a Belgian resident, withdrawals from international SIPPs will be taxed in Belgium at the progressive income tax rates of 25–50% and municipal rates of up to 9%. The municipal surcharge for non-residents is 7%.

Additionally, if a pension is taxable in the UK according to the DTA, it will be exempt from Belgian tax under the “progression rule”.

This means that although the pension income is not taxed in Belgium, it is taken into account when calculating the applicable tax rate on your other Belgian-sourced income, potentially increasing your effective tax rate.