Learn More

Can I Transfer My Pension to Another Country? A Guide for UK Expats

Last updated on October 13, 2025 • About 10 min. read

Author

Andreas Hollas

Regional Director

| Titan Wealth International

This article is provided for general information only and reflects our understanding at the date of publication. The article is intended to explain the topic and should not be relied upon as personalised financial, investment or tax advice. We work with clients in multiple jurisdictions, each with different legal, tax and regulatory regimes. This article provides a generic overview only and does not take account of your personal circumstances; you should seek professional financial and tax advice specific to the countries in which you may have tax or other liabilities.

If you plan to live outside the UK when you retire, you may be wondering how you’ll access your UK pension. In this guide, we’ll answer the “Can I transfer my pension to another country?” question and provide details on available options and potential risks.

What You Will Learn

  • Can you transfer your pension to another country?
  • Why should you transfer your pension as an expat?
  • What pension transfer options are available to UK expats?
  • What should you consider when transferring your pension to another country?

Can You Transfer a Pension From One Country to Another?

Yes, a pension transfer to another country is a viable option for most UK expats. Depending on specific circumstances, the process typically involves the following phases:

  • Determining eligibility: The first phase involves determining whether you meet the criteria that make you eligible for transferring your pension to particular schemes.
  • Selecting a transfer option: In this phase, you should weigh the pros and cons of different schemes and choose the one that aligns with your goals.
  • Adhering to the rules: After the transfer is completed, you must continue following your new scheme’s rules to prevent penalties.

Important note for UK pension holders

For UK pensions, the only HMRC-recognised way to transfer your pension to an overseas scheme is into a Qualifying Recognised Overseas Pension Scheme (QROPS). Transfers to any overseas arrangement that is not on HMRC’s published QROPS list may be classed as unauthorised and could incur UK tax charges.

However, even if you live overseas, you can still transfer your pension into a UK-based Self-Invested Personal Pension (SIPP). This remains a UK-registered pension regulated by HMRC but offers many of the same investment and currency-management features that appeal to expatriates.

Some providers market these as “International SIPPs” to highlight expat-friendly features such as multi-currency investment and online access. However, this is purely a marketing term — an International SIPP is still a UK-registered pension, not an overseas scheme.

Why Should You Consider Transferring Your Pension Abroad?

Transferring your pension may be a good option if:

  • You want your pension(s) to be in the country where you live.
  • You want to easily track any changes in regulations affecting your pension.
  • You work abroad and are considering retiring in that country.
  • You want to potentially achieve greater tax efficiency, depending on your country of residence and any applicable double-taxation treaty.
  • You want to consolidate multiple pension pots into one.
  • Your priority is currency flexibility.
  • You want access to global investment options.
  • You want better estate planning.

Moving your pension abroad may not be suitable for expats who:

  • Plan to return to the UK.
  • Have smaller pension pots.
  • Don’t have long-term residency plans.
  • Live in countries with unfavourable or uncertain local tax rules on foreign pensions.

Note: The suitability and tax outcome of a pension transfer depend on individual circumstances, the pension type, and both UK and overseas regulations.

Pension Transfer Options for Expats

Titan Wealth International specialises in guiding expats through pension transfers, including SIPPs, QROPS, QNUPS, Superannuations, 401(k), and IRA Rollovers. Our team provides cross-border analysis and personalised advice for a range of pension types, ensuring you make the most of your benefits abroad.

Which Pension Structures Are Available to UK Expats

When transferring a UK pension, only a Qualifying Recognised Overseas Pension Scheme (QROPS) can receive a transfer to an overseas jurisdiction without incurring unauthorised payment charges from HMRC. A QROPS must be included on HMRC’s published QROPS list and meet ongoing reporting and eligibility requirements to retain recognised status.

However, UK-based Self-Invested Personal Pensions (SIPPs) remain available even if you live abroad, as they are UK-registered schemes governed by HMRC and UK pension legislation.

Qualifying Non-UK Pension Schemes (QNUPS) and International Private Pension Plans (often established under Section 40(ee) rules) are not permitted to receive transfers from UK-registered pensions. They may, however, be used for separate international savings, wealth, or estate-planning purposes funded from non-UK monies.

The main options expats may consider are:

  1. Self-Invested Personal Pension (SIPP).
  2. Qualifying Recognised Overseas Pension Scheme (QROPS).
  3. Qualifying Non-UK Pension Scheme (QNUPS).
  4. International Private Pension Plan (40ee scheme).

Self-Invested Personal Pension (SIPP)

A SIPP is a UK pension that gives you more investment options and, therefore, greater control over your financial future. SIPPs are available to both UK and non-UK residents, and they can be an excellent option if you:

  • Plan to return to the UK and want investment flexibility.
  • Are looking for investment opportunities you can’t access through a standard pension scheme, like overseas shares, commercial properties, or trustee investment plans.
  • Are a freelancer or business owner who wants to save for retirement.
  • Want to take control over your pension and combine multiple pension pots.
  • Are comfortable making important investment choices or can afford to hire a financial adviser to handle your pension.

An international SIPP could also be the right option for you if you no longer live in the UK but don’t want to transfer your pension overseas.

Note: An “International SIPP” is not an offshore pension. It remains a UK-registered SIPP regulated by HMRC, though it may include multi-currency and expat servicing features.

What if You Already Have a QROPS?

SIPPs now offer the same tax and investment benefits as QROPS but at a significantly lower cost. The once-advantageous benefits of QROPS, such as tax efficiency and investment flexibility, are now matched by SIPPs, making QROPS largely redundant for many expats—but not all. Transitioning to a SIPP can result in considerable savings on fees without sacrificing any of the key benefits.

If you’ve already received financial advice to transfer your pension to QROPS, Titan Wealth International offers a complimentary second opinion to maximise your pension strategy.

Qualifying Recognised Overseas Pension Scheme

A QROPS is an overseas pension scheme that allows British expats and other nationalities with UK pension rights to transfer their benefits abroad without incurring unauthorised payment penalties, provided it meets the standards of His Majesty’s Revenue and Customs (HMRC).

A QROPS must also be officially listed on HMRC’s published register and meet ongoing reporting obligations to retain this recognised status.

Historically, QROPS offered several advantages over UK pensions, particularly for expats. These included greater tax efficiency, higher pension commencement lump sums, and more flexible investment options. However, with improvements in UK pension schemes like SIPPs, many of these benefits are now available through other pension solutions.

Recent changes introduced in the UK Autumn 2024 Budget mean that QROPS pension transfers are now restricted to the jurisdiction where the pension holder resides.

For example, you can only transfer to a QROPS based in Malta if you live in Malta. These changes significantly reduce the availability of QROPS for expats, as most jurisdictions do not have local QROPS options.

As a result, SIPPs have become more relevant for expats who want to optimise their pensions without the geographic restrictions now imposed on QROPS.

QROPS Eligibility Criteria

Transferring a pension to a QROPS is now more restrictive following recent changes to UK regulations. Here are the updated eligibility criteria to keep in mind:

  • Age: You must be between 18 and 75 to transfer your pension to a QROPS.
  • Residency Status: To transfer your pension to a QROPS, you must reside in the same jurisdiction as the QROPS. Additionally, you could be liable for UK tax if you return to the UK within five years of the transfer or withdraw funds within this period.
  • Regulatory Compliance: The scheme you transfer to must be regulated and officially listed as a QROPS by His Majesty’s Revenue and Customs (HMRC).

These stricter criteria make QROPS less viable for many expats, particularly those living in jurisdictions without a compliant local QROPS. Alternative solutions like SIPPs or QNUPS often provide equivalent benefits without these limitations.

Alternative solutions like SIPPs may provide equivalent benefits without these limitations; however, QNUPS cannot accept UK pension transfers and are used for non-UK funded retirement planning.

QROPS Overseas Transfer Charge

Recent changes introduced in the Autumn Budget 2024 have significantly tightened the rules around transferring UK pensions to a QROPS.

These changes, effective from October 30, 2024, remove the exemption from the Overseas Transfer Charge (OTC) for transfers to QROPS established in the European Economic Area (EEA) or Gibraltar unless specific conditions are met.

The updated guidelines outline the 25% OTC applies in the following scenarios:

  1. Residency mismatch: You transfer your pension to a QROPS but reside in a different jurisdiction than the QROPS. For example, if your QROPS is in Malta, you must also reside in Malta to avoid the charge.
  2. Exceeding the Overseas Transfer Allowance: The OTC applies to any transfer amount exceeding the current Overseas Transfer Allowance (OTA) set at £1,073,100.
  3. Relocation within five years: If you relocate to another jurisdiction within five years of the transfer, the 25% charge may be retrospectively applied.

Exemptions from the Overseas Transfer Charge

The OTC will not apply if:

  • You reside in the same jurisdiction as the QROPS at the time of transfer.
  • The QROPS is an occupational pension scheme, and a sponsoring employer employs you under that scheme.
  • The QROPS is a public service scheme, and you are employed by the organisation sponsoring the scheme at the time of transfer.
  • An international organisation establishes the QROPS and that organisation employs you at the time of transfer.

Refunds of the Transfer Charge

If you move to the jurisdiction of the QROPS within five years of the transfer, the 25% OTC may be refunded. However, if you move out of that jurisdiction later, you could retroactively become liable for the charge.

Why These Changes Matter

The removal of the EEA/Gibraltar exemption significantly reduces the viability of QROPS for many UK expats. Transferring to a QROPS will likely incur the 25% charge unless you meet the strict residency criteria or other exemptions. These changes make alternatives like SIPPs or QNUPS increasingly attractive for expats seeking cost-effective, flexible pension solutions.

Despite these restrictions, a QROPS may still be appropriate for individuals who are permanently non-UK resident and living in a jurisdiction with an HMRC-recognised local scheme.

QROPS Benefits That Still Matter, And How SIPPs Have Caught Up

QROPS have traditionally offered unique benefits for UK expats, and while many of these remain valid, recent changes have significantly narrowed their applicability. Here’s an updated view of the benefits that still matter:

  • Higher pension commencement lump sums: Depending on the jurisdiction of the QROPS (e.g., Malta, Gibraltar), it is still possible to access a tax-free lump sum of up to 30% of the pension pot, compared to 25% allowed in UK SIPPs. However, you must now reside in the same jurisdiction as the QROPS to qualify for this benefit.
  • Tax efficiency: QROPS allow pension income to be taxed in the country of residence, which can be advantageous for expats in lower-tax jurisdictions. This remains a key benefit for those living in countries where double taxation treaties with the UK apply.
  • Investment flexibility: QROPS are not bound by UK pension regulations, enabling access to a broader range of investments, including non-UK assets. While SIPPs have caught up significantly regarding global investment options, QROPS may still offer advantages in jurisdictions with favourable currency and tax structures, helping mitigate currency exchange risks.

The advantages of QROPS have been primarily matched by modern SIPPs, which now offer:

  • Investment in a wide range of global assets.
  • Tax efficiency for UK-based schemes.
  • Flexibility for expats who plan to return to the UK or want to consolidate their pensions.

With the new residency-based restrictions on QROPS transfers, SIPPs have become a more accessible and cost-effective alternative for most expats.

Why Consider a QROPS Today?

While SIPPs now provide equivalent benefits for many expats, there are still specific scenarios where a QROPS might be more advantageous:

  • Higher pension commencement lump sum: In jurisdictions like Malta or Gibraltar, QROPS can still provide a tax-free lump sum of up to 30%, compared to 25% for UK SIPPs. However, you must reside in the same jurisdiction as the QROPS to access this benefit.
  • Tax efficiency for long-term expats: For expats permanently living outside the UK, QROPS may still offer favourable tax treatment on pension withdrawals, especially in jurisdictions with beneficial tax treaties.
  • Protection against future UK pension investment restrictions: There is speculation that the UK government may impose rules requiring pension funds to allocate a percentage of their investments (5–20%) into UK-based assets. Historically, UK equities have underperformed compared to global markets. Expats with a QROPS may avoid this restriction, ensuring greater global investment flexibility.

Qualifying Non-UK Pension Scheme

A QNUPS is an overseas pension scheme that is recognised by the HMRC but not approved to receive UK pension transfers. This means that the contributions you make to a QNUPS aren’t subject to tax relief.

However, the pension scheme offers numerous benefits, including:

  • Unlimited pension contributions.
  • More freedom in terms of investment options.
  • No maximum age for making contributions.
  • Integration with Universal Life Insurance (ULI) or Indexed Universal Life Insurance (IUL) policies.

ULI and IUL policies provide life insurance coverage combined with a tax-efficient savings component, allowing for long-term financial protection while growing assets within the QNUPS structure.

Can You Benefit From a QNUPS?

A QNUPS is a good choice for:

  • Those who want an additional international retirement-savings vehicle funded from non-UK pension monies rather than by transferring an existing UK pension.
  • Individuals who want to use their pension assets to invest in properties abroad.
  • Individuals seeking greater flexibility and tax efficiency in their retirement and estate planning by integrating ULI or IUL policies.

This pension scheme is also attractive to UK residents who have maximised their tax-relieved UK pension contributions (£60,000) and want to secure their future through additional retirement-saving vehicles, including life insurance solutions that offer both protection and growth potential.

QNUPS Eligibility Criteria

There are no specific restrictions on establishing or contributing to a QNUPS, but UK-registered pension transfers cannot be made into these schemes. Every jurisdiction has its own regulations, and if you live in a country with unfavourable tax laws, you may have to pay high tax rates. You should always confirm the tax treatment of QNUPS contributions and withdrawals in your country of residence, as rules differ widely.

International Private Pension Plan (Section 40ee Scheme)

International Private Pension Plans (IPPPs) are designed for expats who need global mobility. Such plans were originally created for employees of multinational companies who weren’t suited to standard pension solutions. Today, they are also used by individuals seeking flexible, internationally portable retirement arrangements.

Section 40(ee) plans are not approved to receive transfers from UK-registered pensions. Instead, they are employer- or individually-funded savings vehicles established under local legislation, often offering more flexibility for globally mobile professionals.

Key features can include:

  • No statutory cap on benefits
  • Broad investment choice without UK restrictions
  • Flexible lump-sum withdrawal options

While contributions made under Section 40(ee) can, in certain cases, qualify for UK tax relief or exemption from UK benefit-in-kind rules, the specific treatment depends on individual circumstances and the scheme’s local regulation.

Titan Wealth International’s advisers can help determine whether you meet the eligibility criteria for a Section 40(ee) arrangement or if an alternative pension structure would better align with your objectives.

Can I Transfer My Pension to Australia?

You can move your pension to Australia, but you need to meet specific requirements.

Australia has a pension fund known as superannuation, which is similar to the UK’s defined benefit pension—employers contribute to every employee’s fund. You can transfer your pension to a superannuation fund, but it has to qualify as a QROPS to comply with the UK pension regulations.

If you try to transfer your pension to a superannuation fund that isn’t a QROPS, you could face an unauthorised payment charge of up to 55% of the transferred amount.

Keep in mind that if you’re transferring a defined benefit pension into a superannuation, you have to be at least 55 years old. This age requirement exists due to the following factors:

Factor Explanation
UK pension transfer regulations UK pension legislation typically requires individuals to access their pensions at 55.
QROPS compliance Some Australian superannuation schemes allow individuals to access their pensions before the age of 55. However, UK QROPS rules mandate a minimum age requirement, so a qualified superannuation fund must comply.

That doesn’t mean you should wait until you’re 55 to start thinking about retirement and seeking advice. Titan Wealth International can research your options and recommend a potential temporary solution until you’ve met the conditions for the transfer.

Some options, like SIPP, may also allow you to hold Australian dollar investments. So, even if you can’t access your pension benefits yet, there are reasons to start gathering information on the pension transfer process to Australia.

Guide

UK Pension Transfer to Australia Guide

Whether you’re already enjoying your retirement in Australia or are considering the move and wish to explore your financial options, this guide explains everything you need to know about transferring your UK pension to Australia.

What Is the Right Option for You?

Every situation is unique, and the best transfer option for you depends on your:

  • Current pension scheme.
  • Desire for more investment freedom.
  • Country of residence.
  • Willingness to take risks.
  • Retirement expectations.
  • Planned country of retirement.

If you are confident managing your own investments or intend to work with a financial adviser and want investment flexibility, you could benefit from transferring your pension into a SIPP. On the other hand, a QROPS could be a more fitting solution for expats who don’t plan to return to the UK and are concerned about taxes.

Navigating your options can be complex, so it’s best to get expat pension transfer advice. A regulated and experienced adviser can analyse your current situation and help you maximise your pension benefits.

If you opt for Titan Wealth International, you will receive a personalised report that will clarify the advantages and potential downsides of a transfer, which includes long-term benefits, tax implications, and recommendations.

Book Your Complimentary Discovery Call

Book a complimentary discovery call with one of our experts to discuss whether a UK pension transfer to another country, or an alternative such as an International SIPP, could be appropriate for your circumstances.

In 15 minutes, we’ll help you understand:

  • The potential benefits and drawbacks of different options.
  • How your residency and long-term retirement plans may affect your choices.
  • Our approach to managing pension transfers.

This is an information session only, it will not include a personal recommendation. If financial advice is required, we will explain how this can be provided.

Pension Transfer Fees

Transferring a pension might involve multiple fees, such as:

  • Exit fees: Some pension providers charge exit fees for transferring a pension. For example, leaving some older defined contribution pensions, personal pensions, or stakeholder pensions can include exit fees. Some QROPS may also charge exit fees. These fees could be a percentage of your pension or a fixed amount. Modern SIPPs and QNUPS usually don’t have exit fees.
  • Administration fees: Both your current and future pension provider could charge administration fees for handling your transfer.
  • Pension transfer advice fees: Getting professional pension advice is always recommended and sometimes required by law. Pension transfer specialists may charge a flat rate or by the hour, or they can charge a percentage of the transfer amount.
  • Management fees: Your pension provider will charge you annual management fees. Your new pension scheme could include higher management fees than your old one.

Factors To Consider When Transferring Your Pension

Before opting for a pension transfer, consider the following factors:

Factor Explanation
Loss of bonuses Some pension schemes offer benefits if you stick to your plan for a specific period or regularly contribute to your plan. If you transfer, you’ll likely lose these bonuses.
The Overseas Transfer Allowance (OTA) If you want to transfer your pension to a QROPS, and your funds exceed the OTA (£1,073,100), you’ll have to pay a 25% tax on the excess amount.
Added risks People often want to transfer pensions to get more flexibility and investment freedom. Some pension schemes, like SIPP or QNUPS, provide this advantage—but they also carry more risk. Poor investment decisions could lead to significant losses and affect your retirement goals.

Key Takeaway

We’ve answered whether you can transfer your pension to another country, discussed the best ways to do so, and explained who might be suitable for different options.

UK expats can take advantage of different schemes for pension transfers, and we’ve explained that each situation is unique. To help you prepare for the transfer process, our guide outlines several important factors to consider.

Working with a certified adviser is recommended to every expat who wants to transfer their pension abroad. An adviser will look into your situation and create a report with tailored insights and recommendations.

At Titan Wealth International, you will get professional and personalised advice and a complimentary pension transfer report to help you plan your future with confidence.

The information provided in this article is not a substitute for personalised financial, tax or legal advice. You should obtain financial advice and tax advice tailored to your particular circumstances and in respect of any jurisdictions where you may have tax or other liabilities. Titan Wealth International accepts no liability for any direct or indirect loss arising from the use of, or reliance on, this information, nor for any errors or omissions in the content.

4244

Author

Andreas Hollas

Regional Director

Andreas Hollas is a Private Wealth Director with over 10 years’ experience advising high-net-worth individuals and expats. A Chartered CISI member with a Level 4 Diploma in Investment Advice and a First Class Honours in Economics, Andreas specialises in tax planning, retirement, and investment strategies, providing trusted financial solutions. As a writer on wealth management topics, he shares insights to guide clients and readers toward informed financial decisions.

Book a Call