Malta is heading the list for US residents looking for a QROPS – Qualifying Recognised Overseas Pension Scheme, as a retirement saving solution.
Malta QROPS offer effective investment and tax opportunities to a range of expats and international workers living in the USA.
The tipping point for many independent financial advisors is Malta has a taxation treaty with the US that has a clause that specifically deals with safeguarding funds held by pensions on the island.
Malta is one of the only QROPS jurisdictions out of 46 worldwide with this built-in protection.
The treaty confirms Malta QROPS as US qualifying pension funds.
Plus points for Malta QROPS
Pension investors can rest assured they pay no tax on their Malta QROPS fund, and any income from the QROPS is tax-free in the US.
Add to that the Mediterranean island’s status as a full member of the European Union that backs consumer protection and strict provider compliance provided by a dedicated regulator, and Malta ticks a lot more boxes than many other financial centres.
Other features that are sometimes overlooked is the tiny nation has a British-style legal system and most international business is conducted in English, so dealing with a QROPS provider from the USA is quite straightforward.
The list of plus points just keeps on going – as Malta QROPS can invest in US dollars among a host of other major currencies and can pay benefits direct to an American bank in US dollars as well, cutting out the risk of currency exchange rate fluctuations and transfer delays.
Which US residents qualify for a Malta QROPS?
The list of retirement savers in the US who can qualify for a Malta QROPS includes:
- British nationals living permanently in the USA America
- US nationals returning to the US who have accrued UK pension rights
- Any of the 7 million US expats who have accrued UK pension rights
- Green Card holders living outside the US and the UK
- International workers who are not British or US nationals living in the US who have accrued UK pension rights
Malta is an established QROPS centre that has 15 schemes offered by several providers – including some designed specifically for US residents.
