Can you transfer pensions between countries? How?
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The simple answer is yes, you can. But should you?
If you’re in the UK and have a pension you may be able to transfer it to an overseas pension scheme if you’re moving abroad. However, the scheme you transfer into has to be a qualifying recognised overseas pension scheme, or QROPS. That's just a different type of pension that meets certain requirements set by HMRC.
If it’s not, you might end up paying tax on the transfer, and this could go up to at least 40%, or your pension provider could refuse to make the transfer. There could also be transfer charges. Basically, you might end up paying money to move it.
Of course there are some differences depending on where you’re moving. For example if it’s in the European Economic Area or Gibraltar you typically do not need to pay tax. And if you come back to the UK within five years of transferring your pension you can get the tax refunded.
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