Each year almost 30,000 expats from UK come to reside permanently in New Zealand and avail of the benefits of QROPS New Zealand. These expats from UK who contribute substantial portion of their money to UK pension schemes transfer it via the QROPS scheme. The funds in the pension are taxed but the other benefits provided by the QROPS do not fall under the tax slabs in New Zealand. This is one of the reasons why UK expats opt for New Zealand to settle down at the time of their retirement.
QROPS New Zealand provides huge benefits to the expats who come down to settle by not charging anything on the pension funds transfer from UK. This facility opens up many options in the hands of the retirees to earn more. The funds transfers are exempted from the tax liability and the benefits drawn are also tax-free. But there are certain criteria which do not qualify for the tax exemption on pension funds transfer from UK.
Thus, it becomes hugely important for an expat to keep a tab on the tax reforms and rules on which the transfers from UK pension funds to QROPS New Zealand depend. Any pension where the tax saver has already opted for annuity like the state pension schemes are excluded from QROPS transfer, but other pension funds can be transferred.
QROPS New Zealand is governed by the state departments such as HM customs and revenue. The actuary department dealing with the pension and other regulations has instructed the providers that the superannuation and kiwi saver schemes can be accepted if they meet all the necessary guidelines of QROPS.
QROPS New Zealand also provides added benefits to the savers by paying out tax-free lump sum, which constitutes 25%. But this is only applicable if it meets the necessary criteria under stringent rules. If you are not aware of the rules of New Zealand QROPS, then it is better to acquire knowledge about the tax rules and benefits.