The latest trend among retirees is to take their entire savings and invest it in a tropical country where the funds can earn them a better return. There are many such countries whose cost of living is relatively low when compared to European countries or the US. The United Arab Emirates, and particularly Dubai, is one such preferred destination to park your pension funds and QROPS Dubai is soon becoming a hot favourite among British expats.
When retirees get possession of pension funds, they first snoop around to see what prosperous investment options are available for them. What they soon realise is that there are only so many opportunities in their own country. If they relocated to another place where their lifestyle was much cheaper and their funds could buy them more luxury than in their own country, then such a foreign country would be the ideal destination for retirees. In this respect, a flamboyant international community, tropical atmosphere and a beneficial tax regime are factors that have made QROPS Dubai an ideal option for expats to secure their pension funds.
If you currently live in Dubai but hold a UK pension or propose to make Dubai your home post retirement and in the process continue as a non resident of UK for 5 years or more, then QROPS Dubai would be a rational opportunity. The primary advantage of residing in Dubai is having to pay no tax at all. Unlike countries like Spain and France where the QROPS procedures are complicated, there is no such problem in Dubai. Since HMRC rules dictating QROPS is very stringent, it is ideal to hire a financial adviser in Dubai who is well connected with UK and well versed in the applicable laws. As such investment products are risky enough; pension schemes being one step ahead can be more wobbly and hence need to be handled dexterously.
However, there are no QROPS Dubai pension funds available. Hence, the next best alternative would be to transfer pension funds to a scheme in other low tax neutral regimens such as Isle of Man or Guernsey. This means you still get your income in Dubai but transfer only the funds to the other QROPS destination. The other benefits include nearly 50% tax saving, 100% nomination facility and a wide array of investment options.
Take proper advice on QROPS Dubai transfers. Wrong advice could land you with a heavy tax bill and even subject you to penalty.
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