Pensions Gibraltar
Understanding pensions in Gibraltar
Gibraltar is an established, English speaking finance centre with a mature pensions framework, supervised by the Gibraltar Financial Services Commission and the Gibraltar Income Tax Office.
Three broad types of arrangement
Local Gibraltar personal pensions are for individuals with Gibraltar net relevant earnings. Contributions can attract tax relief within limits set by the Commissioner of Income Tax. Our Jubilee plan is designed for this.
Transfer schemes (QROPS) receive existing UK registered or other approved pension rights, consolidating separate arrangements into one Gibraltar scheme and allowing benefits to be denominated in an alternative currency. Our Diamond plan is a QROPS.
Contribution schemes (QNUPS) are funded by lump sum or regular contributions with no specified upper limit, and are often used by internationally mobile clients. Our Gold and International Gold plans are QNUPS.
Workplace pensions for employers
It will be a requirement for all employers in Gibraltar to provide pension benefits to their employees. We offer both a simple group route, where each employee holds their own Jubilee plan funded by employer contributions, and a trust based occupational scheme through the Platinum arrangement.
Common questions
- What is a QROPS?
- A Qualifying Recognised Overseas Pension Scheme can accept transfers from existing UK registered and other approved pension schemes, as long as the rules of the ceding scheme permit the transfer. Our Diamond Personal Pension Plan is a Gibraltar trust based QROPS.
- What is a QNUPS?
- A Qualifying Non-UK Pension Scheme is funded by contributions rather than UK pension transfers, and there are no specified limits on the size of contributions. Our Gold plan is a trust based QNUPS and our International Gold plan is a contract based QNUPS.
- Who regulates Gibraltar pension schemes?
- Trustee and administration businesses are licensed and regulated by the Gibraltar Financial Services Commission. Locally tax approved schemes are additionally approved by, and report to, the Gibraltar Income Tax Office.
- When can benefits be taken?
- Retirement benefits are generally available from age 55. Unless otherwise agreed with the trustee, commencement of income drawdown must be before age 75, or any other maximum age allowed by Gibraltar regulations.
- What happens on death?
- Where an annuity has not been purchased, the value remaining in the scheme can normally be paid to your nominated beneficiaries or rightful inheritors. Depending on the beneficiary's personal circumstances this may be free of UK inheritance tax. Planning and tax advice is recommended.
- Are there restrictions on what a scheme can invest in?
- Yes. The trustee must invest within allowable investment, diversification and prudency parameters. The trustee cannot grant loans to members or connected persons, residential property investment is only permitted where the property is in Gibraltar, unquoted shares must be independently valued, and all dealings must be at arm's length on commercial terms.
Request a free consultation
Speak to a Gibraltar-based trustee about the right pension arrangement for you or your business.