All about QROPS

What is a QROPS

In straightforward terms, a QROPS is a pension scheme set up outside the UK that mimics a UK pension scheme, because it follows most of the same rules set in the UK. And because a QROPS mimics a UK pension scheme the UK authorities will allow people to transfer their pensions into them.

Types of NZ QROPS

Broadly speaking the three types of New Zealand QROPS schemes:

  • Portfolio Investment Entity (PIE) schemes
  • Investment Platform Schemes
  • Single Member schemes

It is important to understand the differences between these types of schemes.

Advantages of NZ QROPS

The main advantages:

  • Payments from NZ QROPS are NZ tax-free
  • Invest in local currency or GBP
  • Full scheme transparency at all levels – including fees
  • No inheritance tax
  • Excellent and stable regulatory environment


Tax within NZ QROPS

The first thing to understand is that New Zealand adopts a very different tax regime on superannuation than the United Kingdom – in fact the tax treatment is almost completely the opposite.

The four key factors for determining tax within a NZ QROPS are:

  • Whether you are a transitional resident (or non-tax resident)
  • If your a New Zealand tax resident what level of earnings you have
  • Whether your investments will be held in offshore funds and assets or in New Zealand funds and assets
  • Are the investments going to be denominated in foreign currency

Myths about NZ QROPS

There are a number of ingrained myths within QROPS market that are often not the case, the most typical we see are:

  • Myth 1: You need to convert your funds to NZ dollars
  • Myth 2: Never touch a final salary scheme
  • Myth 3: All QROPS are the same

Get In The Know

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