Transferring Pension To Vietnam As A British Citizen
One of the first ideas that will come to mind when you think of retiring somewhere else as a British citizen is about how you will transfer your pension to that country.
By the time you retire, this pension pot will be quite big, and because of this, many people will rely on this money to help them retire and live a life of comfort.
One of the most important things to consider is how you can safely transfer your pension fund, and which way is the best in terms of saving on tax payments.
This is why we have put together this article, which will give you important information about QROPS in Vietnam by GlobalEye Vietnam.
Key Information About QROPS
The recognized overseas pension scheme (ROPS) is a system by which you can move your pension money to another country.
The rules apply to British expats living or retiring in Vietnam as well, which is why you will need to choose a suitable scheme abroad. It will help to deal with the high tax rate, and protect you against currency fluctuation.
Using a ROPS means you will be able to avoid the 45% to 55% tax rate that applies on income and death.
It will also give you the option to receive the funds in another currency. The best option is the US dollar, because it is more closely pegged to the Vietnamese Dong, that pound sterling.
Which QROPS To Choose?
The most important piece of information is that you cannot transfer your pension directly to Vietnam, because it does not have any ROPS.
This means you have two options; either you leave the pension as it is, or move the pension to a country that has a ROPS.
Which Countries To Avoid
Experts suggest that you should avoid choosing Malta, the Isle of Man, or Gibraltar to make a transfer.
Malta does not have a double tax treaty with Vietnam, so tax of up to 35% could apply. Same is the case with the Isle of Man, where the income tax rate will be 20%.
Gibraltar is a better option, but will still apply a 2.5% flat income tax.
The Best Options
The most suitable options for people looking for a ROPS scheme are New Zealand and Hong Kong.
Choosing a New Zealand QROPS will make sure you do not have to pay any tax, because of a valid double taxation treaty with Vietnam. You also have high protection and good choices for investing your money.
Hong Kong is a better option for people who want to take charge of their pension and investment themselves. The country gives you the chance to invest in stock, funds, and ETFs.