QROPS
What is a QROPS?
In order to transfer a UK pension to Germany tax-free, a Qualifying Recognized Overseas Pension Scheme or QROPS for short is required.
A QROPS is therefore a qualifying German pension provider that is registered or listed by HMRC (Her Majesty’s Revenue and Customs) to receive UK Pensions tax-free transfers. In order to maintain registration, the pension provider must ensure that it meets the necessary requirements of HMRC on an ongoing basis and on its own responsibility.
In Germany, there are few pension funds or life insurance companies that meet these requirements. With regard to pension transfers from the UK to German QROPS carriers, we work together with Alte Leipziger and Condor Lebensversicherung.
We will be happy to advise you on your individual QROPS Pension Transfer without obligation. We provide you with all the necessary information and documents for the transfer process and help you with Alte Leipziger or Condor to handle your pension transfer
Why QROPS?
Even after Brexit, there are various risks that can be avoided or reduced by a pension transfer to a QROPS in Germany.
If you live permanently in Germany, a transfer can reduce British uncertainties in connection with politics, exchange rates, Lifetime Allowance and the taxation of your UK pension in Germany.
Transferring your British pension to Germany securely
Safety and compliance: why HMRC approval is crucial
A QROPS (Qualifying Recognised Overseas Pension Scheme) pension transfer is a strictly regulated process that requires the highest level of compliance. In order for a German pension provider to be allowed to receive British pension capital, it must meet the strict requirements of the British tax authority HMRC and be officially listed. In Germany, only very few providers, such as our recommended partners Alte Leipziger Lebensversicherung and Condor Lebensversicherung, meet these complex requirements on a permanent basis. A non-compliant transfer could lead to high, unexpected tax claims. We check individually for each client whether the selected target contract complies with the current HMRC guidelines. This guarantees you legal certainty and protects your retirement assets from so-called ‘unauthorised payment charges’. Thanks to our specialised expertise, we ensure that your transfer is properly documented and that you can make the most of the benefits of British pension law.
Translated with DeepL.com (free version)
Tax aspects: Understanding overseas transfer allowance and LTA
With the latest changes to UK tax law, strategic planning for your pension transfer is more important than ever. Since the abolition of the Lifetime Allowance (LTA) charge in April 2024, the new Overseas Transfer Allowance now applies. This limit, currently set at £1,073,100, is crucial for anyone with higher pension assets. If the transfer value exceeds this threshold, a 25% tax may be levied on the excess amount – a huge financial burden that can often be avoided by taking timely action. A QROPS transfer to Germany allows you to transfer your capital to a tax-advantaged environment before it continues to grow in the UK and possibly exceeds future thresholds. After the transfer, your assets are generally subject to German taxation, which gives you planning security and clarity vis-à-vis the German tax authorities in your retirement.
Minimising currency risks: why transferring your pension to the eurozone protects your retirement income
For expatriates and returnees who spend their retirement in Germany or the eurozone, currency risk is an often underestimated danger. If your pension remains in the UK, your future payments are directly linked to the British pound (GBP) exchange rate. Exchange rate fluctuations can significantly reduce the actual purchasing power of your pension in the eurozone – especially in economically uncertain times following Brexit. By transferring to a QROPS-based product in Germany, you exchange your assets at the current daily exchange rate in euros. This eliminates the currency risk for the entire remaining term of your pension plan. From then on, your capital will be invested and paid out in the currency in which you cover your living expenses. This not only creates stability in your portfolio, but also protects your pension plan from the political and economic volatility of the British market.
The process in practice: How we accompany your transfer
The process of transferring from a British defined contribution or defined benefit pension to a German contract is complex and bureaucratic, and should be carried out with the help of a specialist service partner. Our support begins with a detailed analysis of your existing UK policies to determine whether a transfer is even possible and advisable – because not every policy (e.g. State Pension or NHS) is transferable. We assist with communication with British providers, who often require complex forms and discharge forms. At the same time, we coordinate the setup of the new pension plan with our German QROPS partners. Depending on the response time of the British side, this process can take several months. During this time, we proactively keep you up to date. Our goal is to reduce the administrative burden for you to a minimum so that your assets arrive in Germany safely and in compliance with the law.
References
Below you can see some of our customers' feedback and experiences:
Contact us
You are very welcome to send us your questions or requests via our contact form.
Please note:
- Pension assets with a value of less than €25,000 (according to the current exchange rate) cannot be transferred.
- Unfortunately, we cannot offer any assistance regarding state pensions or the transfer of NHS pension entitlements.
We will usually get back to you within 24 hours, provided your enquiry is received on a working day. We look forward to hearing from you!