QROPS stands for Qualifying Recognised Overseas Pension Scheme.
It is a scheme that enables expatriates to move their UK pensions abroad, usually to Malta or Gibraltar, without having to buy an annuity or have tax deducted in the UK.
A QROPS has to meet certain requirements. The rules of the scheme must be broadly equivalent to a UK registered pension scheme in terms of providing an income for life. Additionally, the scheme manager must provide HM Revenue & Customs with information on certain ‘events’.
To make sure QROPS schemes follow UK pension rules as closely as possible, there are strict regulations to ensure that schemes ‘qualify’ as QROPS. For the latest list of HMRC-approved QROPS, click here.