Can I Transfer My SIPP to Another Country? QROPS and Beyond

By Team SalaryCalculate · 7/15/2025

Can I Transfer My SIPP to Another Country? QROPS and Beyond

If you're planning to retire overseas or are already living abroad, you might be wondering what happens to your UK pension—especially your Self-Invested Personal Pension (SIPP). Can it be transferred abroad? What are the tax implications? Is QROPS still relevant?

In this guide, we explore your options for transferring a SIPP to another country, with a special focus on QROPS (Qualifying Recognised Overseas Pension Schemes) and other considerations for expats and international retirees.

Quick Summary

  • You can’t transfer a UK SIPP to a foreign scheme unless that scheme is a QROPS.
  • Transferring to a QROPS may avoid some UK taxes, but is subject to strict HMRC rules and a potential 25% Overseas Transfer Charge (OTC).
  • SIPPs can still pay income abroad without needing a transfer.
  • It’s often safer to leave your SIPP in the UK and draw from it while living overseas—especially if you're not moving to an EU/EEA country.
  • Always consider tax residency, double taxation treaties, and local pension rules before making any move.

What Is a QROPS?

A Qualifying Recognised Overseas Pension Scheme (QROPS) is an overseas pension scheme that meets requirements set by HMRC. These schemes can receive transfers from UK-registered pension schemes, including SIPPs.

To be considered a QROPS, the scheme must:

  • Be recognised for tax purposes in its own country
  • Not allow access to funds before age 55 (with some exceptions)
  • Meet reporting and compliance standards with HMRC

Only a SIPP or other registered UK pension can be transferred to a QROPS—and only if the QROPS is on HMRC’s official list.

You can check the HMRC QROPS list here.

Who Might Benefit from a QROPS Transfer?

QROPS might be suitable if:

  • You’ve permanently moved abroad (especially outside the UK/EU)
  • You have a large pension pot and want to reduce UK tax exposure
  • You want to hold your pension in a different currency
  • You want more flexible estate planning or investment options in your new country

However, QROPS are not for everyone. You need to weigh the costs, tax consequences, and the risk of losing UK protections such as FSCS (Financial Services Compensation Scheme) coverage.

What Is the Overseas Transfer Charge?

In April 2017, the UK introduced the 25% Overseas Transfer Charge (OTC). This charge applies to most QROPS transfers unless:

  • You live in the same country as the QROPS, or
  • Both the QROPS and your country of residence are in the EEA (European Economic Area)

If your situation changes within five years (e.g. you move countries), you may become liable for this charge retroactively.

💡 Example: You transfer your SIPP to a QROPS in Malta while living in Spain (both in the EEA) — no charge. But if you later move to Australia, HMRC may apply the 25% charge.

Can I Leave My SIPP in the UK and Just Take the Money Abroad?

Yes — and for many people, this is the most cost-effective and tax-efficient option.

Most UK SIPP providers will allow you to:

  • Keep your SIPP in the UK
  • Receive pension withdrawals in a foreign bank account
  • Choose your withdrawal currency (subject to provider support)
  • Use international tax treaties to avoid double taxation

But remember:

  • UK income tax may still apply on your withdrawals.
  • Your country of residence may also tax your pension income.
  • Using double taxation treaties can help reduce or eliminate this risk.

Tax Implications When Retiring Abroad

Tax treatment depends on:

  • Your country of residence
  • Whether a double taxation agreement (DTA) exists with the UK
  • Local rules on foreign pension income

For example:

  • Spain: UK pensions are taxed only in Spain (due to DTA)
  • Australia: Tax-free if transferred under the right structure (e.g. QROPS with age > 55)
  • USA: Complex—UK pensions are taxable in the US, and SIPPs are not always recognized

➡️ Consult a cross-border tax adviser before making any decisions.

Risks of Transferring Your SIPP Abroad

  • High transfer fees (advice, administration, setup)
  • Currency risk if local currency is volatile
  • Loss of UK consumer protections
  • Unexpected tax liabilities if your residence or circumstances change
  • Limited investment choice in some QROPS schemes compared to UK SIPPs

Alternatives to QROPS

If QROPS isn’t viable, consider:

  • Leaving your SIPP in the UK and taking income internationally
  • Transferring to an International SIPP, which offers expat-friendly features while remaining a UK-registered pension
  • Setting up a local pension plan in your new country for future contributions

Final Thoughts

Yes, you can transfer your SIPP to another country, but only to a QROPS, and only in specific circumstances. In many cases, leaving your SIPP in the UK and drawing from it abroad is the safer and more flexible option—especially if you’re moving within the EU or to a country with a favourable tax treaty.