Now that QROPS have been officially approved in the Isle of Man, experts predict many more offshore jurisdictions will join the market.
Last month on the 19 October, the Manx parliament Tynwald passed legislation, Income Tax (Pensions) (Temporary Taxation) Order 2010, that allows expats to set up QROPS (Qualifying Recognised Overseas Pensions Scheme) in the jurisdiction.
It seems that more and more expats are realising the benefits of the scheme as the QROPS market is growing from strength to strength, and currently has a market value of around £575 billion. Following the Isle of Man's new legislation more offshore jurisdictions are expected to follow suit.
QROPS expert and Close International head of marketing and products, Rex Cowley said: “It is not surprising to see offshore financial centres competing fiercely for the spoils that QROPS offers. The Isle of Man has proved that the QROPS market is maturing and that there remain many valid tangible reasons for undertaking a QROPS transfer. With more than 8000 QROPS transfers already completed it is encouraging that they, like us, see that QROPS is here to stay as a mainstream financial product.”
Expat & Offshore has a wealth of information on QROPS transfers and alternative retirement options, visit our Pensions and Retirement Planning section for more information.