**Many British expats will know that the perks of retirement don’t come easy and often require substantial financial planning, particularly when it comes to pensions.** In April 2006, popularly known as A-Day, the rules of retirement changed for non-resident Brits. People with UK pensions who lived abroad were able to switch to a ‘qualifying recognised overseas pension scheme’, a QROPS, and consequently take advantage of the associated benefits. For those who are not experts in pensions, a QROPS is essentially a scheme which is established outside the UK, is required to meet certain criteria set by HM Revenue and Customs and is regulated by the authorities in that country. More importantly, a QROPS can potentially act as a tax-efficient retirement savings vehicle, allowing you to get the most of your savings. We asked Stephen Humphreys, a partner at Moore Stevens chartered accountants LLP, why he thought expatriates would want to consider this option. “A key attraction of a QROPS is that, depending on the QROPS jurisdiction, income from it can be payable gross, without any tax treaty requirement”, he explains. “It’s worthwhile noting that there is no requirement for your QROPS to be registered in the jurisdiction where you live.” Tax havens appear to be one major factor attracting people to these schemes, and, as Stephen points out, there is no requirement for a QROPS to be registered in the jurisdiction where you live. “Anyone retiring to a tax haven also stands to benefit significantly by transferring a UK pension to a QROPS. For example, If you retired to Monaco but left your pension in a UK scheme, income paid from it would have suffered a tax deduction at source in the UK because no tax treaty between the UK and Monaco exists. However, if you transferred your pension to a QROPS, the lack of tax treaty becomes irrelevant. Income from your QROPS would be paid to you gross in Monaco – and because Monaco is a tax-free jurisdiction, you receive the full amount of your pension income, suffering no tax at all.” Tax havens aside, many other overseas jurisdictions have favourable top rates of tax when compared to the UK. “In Singapore,” explains Stephen, “the top rate is 20%, in Cyprus it is 30% with foreign pensions taxed at only 5%. In Hong Kong the top rate is 16%, though the rate applied to foreign pensions, including QROPS pensions, is 0%. You could have a QROPS registered in Guernsey, one of the major QROPS centres, and then retire to Spain, Portugal, Monaco or anywhere else,” explains Stephen. Another positive factor is that a QROPS can be made in any currency, cutting out any foreign exchange losses and giving you the freedom to gain from forex fluctuations. If you’re looking for a simple way to protect your assets against changes in the market, you may want to find out about forward contracts and other flexible payment methods by calling Currency Solutions on +44 (0)207 740 0000. For specific advice about QROPS, you can contact Stephen Humphreys FIFP, CFP - Moore Stephens LLP, (0)20 7334 9191 –