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 your DB pension is valued above £30,000, UK law requires you to obtain appropriate independent advice from an FCA-authorised pension transfer adviser before the scheme can proceed, even if you live overseas.

Where a DC plan includes safeguarded benefits (for example, a guaranteed annuity rate) valued above £30,000, the same statutory advice requirement applies.

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 a scheme.
2. An in-specie transfer: Your existing investments are moved directly into the new scheme, but this is only possible if both schemes allow it and the receiving scheme provides access to the exact same assets you currently 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, we help you review your DB pension in the context of your wider retirement objectives. We can explain your CETV and liaise with your scheme if clarification or recalculation is appropriate.

Where FCA-regulated pension transfer advice is required, we work alongside qualified Pension Transfer Specialists to ensure you receive the mandatory advice before proceeding.

What Is the Structure of the Belgian Pension System?

Belgium’s legal retirement age is 66 for pensions starting on or after 1 February 2025 (rising to 67 in 2030). 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. Employees pay 13.07% social security on gross pay and employers roughly 25–27% (rates vary by sector). These contributions finance several branches, including the state pension.
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. Transfers to a non-QROPS are treated as unauthorised payments, normally incurring a 40% charge, potentially plus a 15% surcharge, and a scheme-level sanction charge.

Since the 6th April 2024, transfers to QROPS have been limited by the overseas transfer allowance (OTA) (standard £1,073,100; higher if protected). Any excess is taxed at 25%, even where an overseas transfer charge (OTC) exemption applies.

You may have to pay the overseas transfer charge of 25%. You do not if, at the time of transfer, any one of the following applies and the transfer does not exceed your available OTA:

• You are tax-resident in the same country where the QROPS is established.
• The QROPS is an occupational scheme provided by your employer, and you are an employee of a sponsoring employer at the time of transfer.
• The QROPS is set up by an international organisation and you are an employee of that organisation.
• The QROPS is an overseas public service pension scheme and you are an employee of a participating employer.

If you move country within five full tax years of the transfer, HMRC may refund or impose the 25% OTC depending on your new residence. The OTA can still apply to any excess over your allowance.

For UK expats resident in Belgium, a transfer to a Belgian-based QROPS can qualify for an OTC exemption, but most Belgian entries on the QROPS list are employer, international-organisation or public-service schemes with restricted eligibility.

Always check the current HMRC QROPS list and confirm you meet the scheme’s rules; inclusion on the list does not guarantee ROPS status at the transfer date or that you can join.

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 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’t considered 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: Under current UK rules, you can usually take up to 25% of your pension tax-free, capped at £268,275 (higher if protection applies). If you die before age 75 and the scheme pays within two years, lump-sum death benefits are tax-free in the UK up to £1,073,100; any excess is taxed as income. However, local tax may still apply, for example, Belgium taxes residents on such lump sums even if the UK does not.
• 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 only receive a transfer from a UK-registered pension if the receiving scheme is also a QROPS, in which case UK overseas-transfer rules (e.g, OTA/OTC) may apply.

A transfer to a non-QROPS is normally an unauthorised payment and taxed accordingly but they are primarily used by high-net-worth individuals to accrue additional retirement savings.

Establishing a QNUPS may be 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, private pensions are taxable only in the state of residence. Belgium taxes residents at progressive 25%–50% national rates, plus a communal surcharge (0%–9%); non-residents pay a 7% federal surcharge.

Where income is taxable only in the UK under the DTA (for example, certain government pensions), Belgium generally exempts it from Belgian tax but applies the exemption with progression method.

This means the income is not taxed in Belgium, but it is considered when calculating the tax rate applied to your other Belgian-sourced income, potentially increasing your effective tax rate.