For many years ECS International have provided a consultancy service to individuals moving to take up employment abroad. Much of our business in this area has been dealing with transfers from the United Kingdom to the Isle of Man. However an individual that has been granted "Qualifying (Category 2) Individuals Status" in Gibraltar has the opportunity to transfer their pension to Gibraltar.

What Are The Advantages?

  1. 25% of the pension can be taken from the scheme by way of tax-free cash on retirement.
  2. A Pension can be drawn from the fund with no requirement to purchase an annuity.
  3. No additional tax is payable on the pension other than the liability arising under Category 2 status
    This is not covered in the Gibraltar Legislation but we have agreement from the Commissioner of Income Tax)
  4. Should a member of the pension scheme give up HNWI status, the pension of that member would become fully taxable in Gibraltar. Thus it is important that the member maintains the status.
  5. If however he gives up the status prior to retiring and becomes a resident of a recommended jurisdiction for pension scheme purposes, the pension fund could be transferred out. This would enable him to commute or pay an acceptable level of tax.
  6. No inheritance tax payable on death.

What Is The Procedure?

  1. Establish a Gibraltar employment company. This can be an exempt or qualifying company.
  2. The Gibraltar company the employs the member and grants them an employment contract.
  3. Create a Gibraltar Pension Scheme by deed and appoint Trustees to the Scheme (ECS can provide this service)
  4. Appoint Gibraltar Administrator of the scheme (ECS can provide this service)
  5. Obtain approval for a Small Self Administered Scheme from the Gibraltar Commissioner of Income Tax
  6. Apply to the UK Pension Scheme Office for approval to transfer
  7. Transfer the Pension Assets to the Gibraltar Pension Scheme
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.