International SIPP: 2025 Guide for Global Expats

An International SIPP (Self‑Invested Personal Pension) offers overseas pension holders the flexibility and control of a UK‑regulated pension without needing to reside within the UK. For those living abroad, it's a compelling alternative—especially in light of regulatory changes to QROPS and QNUPS. This guide explains why international SIPPs matter in 2025, how they compare to other schemes, and what steps international clients should take—with a storyline covering the evolution of pension transfer options.

What Is an International SIPP?

An FCA‑Regulated UK Scheme with a Global Reach

An International SIPP is legally identical to a UK SIPP: it’s registered in the UK and regulated by the Financial Conduct Authority. Where it differs is that it's designed for non‑UK residents. Most standard UK SIPPs (e.g., AJ Bell, Fidelity) require a UK address, but international SIPPs welcome clients worldwide, offering payments to foreign accounts, NT tax‑code handling, and multi‑currency capabilities.

By remaining FCA‑regulated, your pension retains UK regulatory protections while being fully accessible abroad.

Evolution of Overseas Pension Transfers

From Opportunity to Obsolescence: QROPS & QNUPS

QROPS and QNUPS emerged as coveted alternatives to UK pensions in the early 2000s. QROPS allowed tax‑frees transfers to abroad schemes, bypassing the UK’s lifetime allowance (LTA). QNUPS provided estate‑planning flexibility, enabling pension structures to bypass inheritance tax.

However, the 2017 Overseas Transfer Charge (OTC) imposed a 25% tax on transfers outside the UK, except for specific cases (EEA, Gibraltar). Many withdrawals lost value overnight. Then, the April 2024 abolition of the LTA, targeted the final advantage of QROPS. In October 2024, the removal of EEA exemptions effectively eliminated the remaining QROPS benefits—unless you live in the same jurisdiction as the scheme.

Upcoming: QNUPS rules are due to change—possibly narrowing provider eligibility and tightening tax advantages. Clients should anticipate reforms and monitor new legislation closely.

QROPS: Why It Isn’t Dead (Yet)

When QROPS Still Works

Although diminished, QROPS retains value in specific niches:

• Residents in Malta or Gibraltar—because schemes are based there and transfers stay in the same jurisdiction.

• Tax treaty advantages—certain nationalities, especially EU residents, continue to benefit from existing agreements between the UK and Malta.

• Lump‑sum overseas inheritance planning, where estate‑planning rules trump OPT value.

However, QROPS now only suits a narrow demographic—principally those legally domiciled where the scheme is based, or where treaties remain intact. Outside these circles, international SIPPs usually offer a better fit.

Upcoming QNUPS Changes

What’s Changing — And Why It Matters

QNUPS (Qualifying Non‑UK Pension Schemes) are set to face regulatory tightening. Proposed changes include:

• Stricter residency eligibility, possibly eliminating schemes based in jurisdictions outside the EEA.

• Reduced allowances for contributions and benefits, impacting high‑net‑worth estate planning.

• Expanded reporting requirements on both contributions and cross‑border transfers.

Why This Matters: Clients using QNUPS for inheritance tax shelter or long-term planning must act before new deadlines. For many, this shift might make international SIPPs a more straightforward, compliant choice.

International SIPP vs. QROPS vs. QNUPS: A Detailed Comparison

Choosing the Right Solution

Feature	International SIPP	QROPS	QNUPS
Regulation	FCA‑regulated, UK trustee oversight	Varies (e.g., Malta) with local oversight	Varies by scheme, often offshore
Transfer Tax	None (if transferring within UK SIPP structures)	25% OTC unless same‑jurisdiction exception	No OTC, but subject to future limits
Lifetime Allowance	LTA abolished, so irrelevant	LTA mitigation no longer needed	Not impacted by LTA
NT Tax Code Eligibility	Yes	No	No or limited
Investment Flexibility	Global funds, multi‑currency options	Moderate; dependent on scheme	Depends on provider and domicile
Fees	£180–£200 pa on pot (≈£100k+)	Typically higher	Highest; due to complexity
Ideal For	Most non‑UK residents and globally mobile savers	EU residents in Malta/Gibraltar; dual‑tax treaty setups	High‑net‑worth estate planning

Bottom Line:

• International SIPP is the go‑to for most expats—providing tax flexibility, currency options, and FCA protection.

• QROPS may still fit EU clients in specific tax jurisdictions.

• QNUPS should be evaluated before impending rule changes, especially for inheritance planning.

  
  

Advantages of International SIPPs Explained

Tax-Efficiency with NT Tax Codes

International SIPPs allow you to apply for an NT (No Tax) code. This ensures pension withdrawals are made 100% gross, with the tax burden borne in your country of residence. This setup avoids UK emergency tax rates and simplifies cross-border pension management.However, clients must properly declare their income within their new jurisdiction. Good record-keeping and expert advice are crucial.

Global Fund & Currency Flexibility

International SIPPs support fund investment across GBP, USD, EUR and more. You can create multi-currency portfolios—minimizing exchange rate risk and aligning with where you live and spend. The functionality to align investment currency with expenses is invaluable to globally mobile retirees.

Transparent Costs and FCA Protection

Typical fees run ~£180–£200 per annum, regardless of pension pot size. Unlike offshore schemes, international SIPPs abide by stringent FCA standards—ensuring transparent pricing, trustee oversight, and consumer protection under the Consumer Duty.

Gross Payments Abroad

International SIPPs ease the process of receiving gross payments directly to your overseas bank—that automatically integrate into your local financial system. With NT codes in place, you avoid UK withholdings and simplify your tax position abroad.

How International SIPPs Help in Common Scenarios

Case: Retiring Abroad in Low-Tax Jurisdictions

Imagine retiring in Portugal, the UAE, or New Zealand. Currency‑aligned investments (EUR for Portugal, AED for UAE) and gross payout capability make international SIPPs highly tax efficient and practical.

Case: Globally Mobile Executive

If you live in multiple countries (e.g., 3 years in Saudi, followed by 2 years in Australia), international SIPPs enable pension portability through relocations—without losing access or needing transfers with each move.

Case: Pension Pot Consolidation

With multiple UK workplace pensions, transferring to one FCA‑regulated International SIPP offers centralized control, streamlined withdrawals, and simplified investment oversight—all suited for an international lifestyle.

Managing Currency Risk & Multi‑Currency Strategy

Strategic Currency Placement

International SIPPs let you hold separate currency pools. You might allocate £250k in USD and another £250k in GBP, timing draws based on favorable forex rates. For example, withdraw USD if GBP weakens—or vice versa—optimizing income and preserving value.

Tactical FX Risk Control

If GBP:USD drops to 1.10, withdraw USD. If GBP regains strength (e.g., 1.40), shift future withdrawals to GBP. This financial agility helps safeguard retirement funds against forex volatility.

Investment Options & Asset Allocation

Diverse Global Exposure

International SIPPs offer access to:

• Global passive index funds (e.g., FTSE, MSCI),

• Exchange-Traded Funds (ETFs),

• Active funds,

• ESG/thematic investments,

• Access to DFM-managed portfolios,

• Open architecture access to global stocks, bonds and regulated traded securities.

This breadth ensures your investments can match your risk tolerance and retirement horizon, regardless of where you live.

Customized Risk Profiling

Advisors work with you to create a tailored strategy—balancing assets (equity vs. bonds) to suit your stage in life and global objectives.

Tax Efficiency & Cross‑Border Planning

Understanding NT Tax Codes

Applying for an NT code prevents UK income tax deductions at source. However, this doesn't eliminate tax—your retirement country dictates your liabilities and compliance rules.

Reporting Requirements

• Declare gross withdrawals in your resident country.

• Keep documentation for tax audits.

• Track contributions and withdrawals diligently.

• Watch out for anti-abuse rules under evolving QNUPS regulations.

What Happens If You Return to the UK?

Seamless Integration Back Into UK Residency

Returning residents can continue using their International SIPP without issue. UK tax rules apply—meaning withdrawals will be taxed under PAYE unless you reapply for a coding change. There's no need to transfer, consolidate, or change provider when moving back.

Regulation & Advice: The Pillars of Security

FCA Oversight = Protection

International SIPPs under UK regulation bring robust protections—mandatory reporting, transparent costs, and trustees accountable to legislated standards.

Importance of Regulated Advisors

Only deal with advisers regulated by the FCA (or equivalent overseas standards). Many offshore pension products lack transparency, enabling high fees, commission arbitrage, and unregulated counsel.

Risks in Legacy Offshore Pension Structures

High Fees, Poor Oversight

Past pension scams featured costly, opaque offshore bonds—often with embedded commissions. Misaligned incentives, low returns, and absent FCA oversight left clients exposed.

Structured‑Product Failures

Offshore investments tied to complex derivatives often underperformed, eroding retirement wealth. In contrast, International SIPPs offer clarity in cost, outcome, and oversight.

Global Fund & Currency Flexibility

International SIPPs support fund investment across GBP, USD, EUR and more. You can create multi-currency portfolios—minimizing exchange rate risk and aligning with where you live and spend. The functionality to align investment currency with expenses is invaluable to globally mobile retirees.

Transparent Costs and FCA Protection

Typical fees run ~£180–£200 per annum, regardless of pension pot size. Unlike offshore schemes, international SIPPs abide by stringent FCA standards—ensuring transparent pricing, trustee oversight, and consumer protection under the Consumer Duty.

Gross Payments Abroad

International SIPPs ease the process of receiving gross payments directly to your overseas bank—that automatically integrate into your local financial system. With NT codes in place, you avoid UK withholdings and simplify your tax position abroad.

How International SIPPs Help in Common Scenarios

Case: Retiring Abroad in Low-Tax Jurisdictions

Imagine retiring in Portugal, the UAE, or New Zealand. Currency‑aligned investments (EUR for Portugal, AED for UAE) and gross payout capability make international SIPPs highly tax efficient and practical.

Case: Globally Mobile Executive

If you live in multiple countries (e.g., 3 years in Saudi, followed by 2 years in Australia), international SIPPs enable pension portability through relocations—without losing access or needing transfers with each move.

Case: Pension Pot Consolidation

With multiple UK workplace pensions, transferring to one FCA‑regulated International SIPP offers centralized control, streamlined withdrawals, and simplified investment oversight—all suited for an international lifestyle.

Managing Currency Risk & Multi‑Currency Strategy

Strategic Currency Placement

International SIPPs let you hold separate currency pools. You might allocate £250k in USD and another £250k in GBP, timing draws based on favorable forex rates. For example, withdraw USD if GBP weakens—or vice versa—optimizing income and preserving value.

Tactical FX Risk Control

If GBP: USD drops to 1.10, withdraw USD. If GBP regains strength (e.g., 1.40), shift future withdrawals to GBP. This financial agility helps safeguard retirement funds against forex volatility.

Investment Options & Asset Allocation

Diverse Global Exposure

International SIPPs offer access to:

• Global passive index funds (e.g., FTSE, MSCI),

• Active funds,

• ESG/thematic investments,

• Access to DFM-managed portfolios.

This breadth ensures your investments can match your risk tolerance and retirement horizon, regardless of where you live.

Customized Risk Profiling

Advisors work with you to create a tailored strategy—balancing assets (equity vs. bonds) to suit your stage in life and global objectives.

Tax Efficiency & Cross‑Border Planning

Understanding NT Tax Codes

Applying for an NT code prevents UK income tax deductions at source. However, this doesn't eliminate tax—your retirement country dictates your liabilities and compliance rules.

Reporting Requirements:

• Declare gross withdrawals in your resident country.

• Keep documentation for tax audits.

• Track contributions and withdrawals diligently.

• Watch out for anti-abuse rules under evolving QNUPS regulations.

What Happens If You Return to the UK?

Seamless Integration Back Into UK Residency

Returning residents can continue using their International SIPP without issue. UK tax rules apply—meaning withdrawals will be taxed under PAYE unless you reapply for a coding change. There's no need to transfer, consolidate, or change provider when moving back.

Regulation & Advice: The Pillars of Security

FCA Oversight = Protection

International SIPPs under UK regulation bring robust protections—mandatory reporting, transparent costs, and trustees accountable to legislated standards.

Importance of Regulated Advisors

Only deal with advisers regulated by the FCA (or equivalent overseas standards). Many offshore pension products lack transparency, enabling high fees, commission arbitrage, and unregulated counsel.

Risks in Legacy Offshore Pension Structures

High Fees, Poor Oversight

Past pension scams featured costly, opaque offshore bonds—often with embedded commissions. Misaligned incentives, low returns, and absent FCA oversight left clients exposed.

Structured‑Product Failures

Offshore investments tied to complex derivatives often underperformed, eroding retirement wealth. In contrast, International SIPPs offer clarity in cost, outcome, and oversight.

Setting Up an International SIPP: Step‑by‑Step

Setting Up an International SIPP: Step‑by‑Step

Step 1: Free Consultation

Talk with a regulated IFA to assess whether an International SIPP aligns with your circumstances.

Step 2: Pension Assessment

Review each UK pension plan—its type, value, and transfer suitability.

Step 3: Comparison & Planning

Examine costs, after‑tax value, currency strategies, and tax implications.

Step 4: Documentation

You’ll need ID, proof of residence, pension plan details, and transfer forms.

Step 5: Applying for NT Tax Code

Your adviser coordinates with HMRC to ensure gross withdrawals eligibility.

Step 6: Implementation & Investment

Once funds transfer, configure your multi-currency and asset allocation strategy.

Step 7: Ongoing Management

Monitor performance, re-balance investments, and maintain compliance with changing circumstances.

FAQ – International SIPPs and UK Pension Transfers for Expats

Can I hold USD or EUR in my SIPP?

Absolutely. International SIPPs support multi-currency investments allowing GBP, USD, and EUR portfolios.

Is it worth it for small pension pots?

Possibly not. A pot under £50k may not justify annual fees of £180–£200. For larger pots, the benefits grow significantly.

What if I continue moving countries?

No need to jump between providers. One International SIPP remains valid—even across multiple relocations.

Are withdrawals always paid gross?

Yes—with an approved NT code. Without it, emergency tax applies and might require reclaiming via HMRC.

What about returns to the UK?

Your International SIPP carries on seamlessly. UK tax rules apply once you return, but no need to transfer out.

How long does the transfer take?

Typically 6–12 weeks, influenced by provider responsiveness and HMRC processing.

Choosing the Right Pension Strategy

Selecting between International SIPP, QROPS, and QNUPS depends on:

• Your country of residence,

• Your tax goals,

• Pension pot size,

• Estate planning needs,

• Regulation and suitabilities.

Expert advice is essential to weigh benefits: QROPS could profit EU‑based individuals, while QNUPS may still serve estate needs before new rules take effect.

Why Talk to a Global Investments Advisor

• Free initial consultation, with review of all UK pensions.

• Objective advice—we’re FCA regulated, passionate about transparency.

• End‑to‑end guidance, from paperwork to ongoing oversight.

• Currency support tailored to your retirement life.

Get in touch today with a Global Investments advisor who understands what matters to you. We'll help you unpack your options and navigate the process with clarity and compliance.

Conclusion

In 2025, the International SIPP stands out as the leading UK pension transfer tool for expats and global professionals. With QROPS limited, QNUPS uncertain, and FCA‑backed investors seeking stability, International SIPPs deliver tax efficiency, investment agility, and regulatory safety.

If you're considering pension moves abroad—especially with the changing rules—talk to a qualified IFA. Speak with our experienced advisors to determine your best path forward.

Connect now for a free consultation and pension review.

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