Time to review QROPS arrangements for Italian Residents
Exclude
include ESG scores or sustainability policies into risk / return profiling
positive environmental and social change with market rate returns
limit exposure to unethical or damaging industries
Impact
seek financial return without consideration of sustainable criteria or outcomes
Traditional
ESG integration
Exclude
ESG integration
Traditional
seek financial return without consideration of sustainable criteria or outcomes
limit exposure to unethical or damaging industries
include ESG scores or sustainability policies into risk / return profiling
Impact
positive environmental and social change with market rate returns
A set of 17 global goals which are the blueprint to achieve a better and more sustainable future for all
Sustainable investments have performed well in recent years, often delivering higher returns than the broader market
UN Sustainable Development Goals
Invest in Positive Change
Positive Long term financial performance
Put your money behind ideas that help communities take control of vital assets and services
Empowering Communities
Sustainable investing connects investors with innovative companies and organizations working to create a better and more sustainable future for all
What do we mean by “Sustainable Investment”
In 1982, the United Nations defined sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs”. Or as Sir David Attenborough put it, “If you want to know if something is sustainable just ask yourself“ can we do this over and over again forever”.
Sustainable investment means that we need to keep three things in mind at once. Social
progress, the environment and economic development – or people, planet and profit.
For many years, offshore financial sales people have been pushing Italian residents to transfer out of their UK personal and company pension schemes to overseas arrangements with seemingly attractive claims such as being free of UK rules and no longer subject to tax. These kinds of claims are not only inaccurate, they are also dangerously misleading.
HM Revenue and Customs starting point is that it doesn’t want pension funds which have enjoyed UK tax benefits to be transferred to overseas schemes which don’t have similar restrictions to the UK. As an Italian resident it is essential to get advice from a specialist directly regulated local firm such as Unity Financial Partners.
Since 9 March 2017 an overseas transfer charge applies to certain transfers from a registered pension scheme to a QROPS. Details of the overseas transfer charge guidance can be found here https://www.gov.uk/government/publications/qualifying-recognised-overseas-pension-schemes-charge-on-transfers/the-overseas-transfer-charge-guidance
The transfer charge of 25% can apply for up to five full tax years if the member moves outside of the European Economic Area (EEA).
We have discovered that in many cases, Italian residents are paying excessive fees, charges and commissions to offshore firms and providers which are eating up the value of their pension.
Some Italian residents have even been told that they do not need to pay tax in Italy when they take out income here.
A QROPS can be a good choice for an Italian resident particularly for larger funds provided the portfolio is set up correctly and the right initial and ongoing advice is provided.
In many cases, a transfer out of QROPS to a less expensive UK based structure can work very well for an Italian resident, particularly if a move back to the UK or overseas may occur in the future.
Many of our client are qualified financial professionals who have been resident in Italy for many years and appreciate our ability to provide simple and clear solutions in an environment where transparency can often be lacking.
To arrange a review of your existing QROPS and look at how you can reduce costs and increase performance, contact us to book a meeting. Please also forward this article to friends and colleagues who may find this valuable.
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Italyadviser.com is a trading style of Unity Financial Partners Srl which is registerd with IVASS Reg No B00035674. Unity Financial Partners is able to passport services throughout the European Union. Unity Financial Partners also facilitates services via a network of affiliated professional partners who are separately registered and regulated in their own right within the European Union and worldwide. Registered Office: Viale Aventino 80, Rome 00153. Administration Centre: Via Del Vespro 75, Messna 98122. Partita IVA/
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