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Cashing in your pension

Cashing in your pension

Old Jun 29th 2017, 1:09 am
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Default Cashing in your pension

Hi,

I'm new to the group so am sorry if this has been on before.
In UK you can cash in up to 100% of your pension fund. (I appreciate the tax implications involved in this).

My questions are:
Can you do the same with a QROPS?
Has anyone actually done this and how did the Spanish Tax Authorities treat this cash?

Thanks.
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Old Jun 29th 2017, 3:08 am
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Default Re: Cashing in your pension

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

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Old Jun 29th 2017, 3:14 am
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Default Re: Cashing in your pension

Thank you Rosemary.
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Old Jul 4th 2017, 10:54 pm
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Default Re: Cashing in your pension

Hello Wattnb,

I was doing research regarding all this for the last two months when I was contacted about transferring my UK pension, I ended up using a UK company and setting up an international SIPP.

From what I read, that would all depend on when you set up your QROPS and with what provider. This is because they may have exit fees/charges that limit you being able to do this. Also who the trustees on your QROPS are and where it is based!
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Old Jul 5th 2017, 12:04 am
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Default Re: Cashing in your pension

Originally Posted by Robinclarke1960
Hello Wattnb,

I was doing research regarding all this for the last two months when I was contacted about transferring my UK pension, I ended up using a UK company and setting up an international SIPP.

From what I read, that would all depend on when you set up your QROPS and with what provider. This is because they may have exit fees/charges that limit you being able to do this. Also who the trustees on your QROPS are and where it is based!
Hi Robin,
Thank you for your response.
I have had a QROPS since 2011. It has reduced in value since then. It is with Momentum in Malta and I am trying to work out a way to get hold of it to buy a small apartment without incurring a lot of tax. I'm just not sure whether the Spanish would treat any draw-down as income tax or savings tax or indeed as something else. I have a Spanish lawyer/accountant in Granada. If all else fails I will speak to him. I have written to Momentum to ask about my options for withdrawl and am waiting a reply. I just wondered if anyone else had already been through this process.
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Old Jul 5th 2017, 1:14 am
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Default Re: Cashing in your pension

Hi Wattnb,

It should be better for you that it is in 2011. Does not sound good that it has gone down in value however, I would guess you are in some structured products or expensive funds that may be worth asking for a review! Sorry can not be more helpful, your adviser should be fully aware! Or your accountant of course. I just set up mine so haven't requested any withdrawal yet.

Robin
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Old Jul 5th 2017, 2:52 am
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Default Re: Cashing in your pension

Lumps sums taken from pensions are taxable in Spain. There is no 25% exempt allowance as there is in the UK.
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Old Jul 6th 2017, 12:22 am
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Default Re: Cashing in your pension

Originally Posted by wattnb
Hi,

I'm new to the group so am sorry if this has been on before.
In UK you can cash in up to 100% of your pension fund. (I appreciate the tax implications involved in this).

My questions are:
Can you do the same with a QROPS?
Has anyone actually done this and how did the Spanish Tax Authorities treat this cash?

Thanks.
Are you actually a Spanish resident at the moment ? If so tax bites from first Euro .
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Old Jul 7th 2017, 9:07 pm
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Default Re: Cashing in your pension

Originally Posted by wattnb
Hi Robin,
Thank you for your response.
I have had a QROPS since 2011. It has reduced in value since then. It is with Momentum in Malta and I am trying to work out a way to get hold of it to buy a small apartment without incurring a lot of tax. I'm just not sure whether the Spanish would treat any draw-down as income tax or savings tax or indeed as something else. I have a Spanish lawyer/accountant in Granada. If all else fails I will speak to him. I have written to Momentum to ask about my options for withdrawl and am waiting a reply. I just wondered if anyone else had already been through this process.
Why is it in a QROPS if resident in Spain? Pretty impressive adviser if the fund went down during one of the longest bull markets in recent history. Are you stuck in an insurance bond with exit fees? See if it is possible to move to a SIPP with Momentum, to reduce the effects of the fees. A UK regulated platform, with a SIPP facility, would be far better value for money.
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