QROPS stands for Qualifying Recognised Overseas Pension Scheme. It is a tax-efficient way for Non-Resident Indians (NRIs) to access their UK pension savings. QROPS allows UK pension funds to be transferred to a registered pension scheme in India.
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The full form of QROPS is Qualifying Recognized Overseas Pension Scheme. It is a type of overseas pension scheme that is registered with the UK tax authorities (HMRC) and meets certain requirements.
QROPS is a pension transfer arrangement for NRIs holding their pension fund in the United Kingdom (UK) and who wish to move their pension to India.
In India, QROPS allows you to transfer your UK pensions to Indian pension schemes that meet certain criteria set by HM Revenue and Customs (HMRC) in the UK.
This enables the NRIs who have worked in the UK to consolidate their pensions in India, offering potential tax benefits and greater flexibility in managing retirement funds.
Tax-free lump sum transfer: Up to 25% of the transferred amount can be withdrawn as a tax-free lump sum.
Tax-free growth: The remaining amount grows tax-free within the QROPS scheme.
Tax-free annuity: Under certain conditions, the annuity received can be tax-free in India.
The key benefits of investing in QROPS scheme in India are listed below:
Tax Benefits: QROPS schemes offer tax advantages for NRIs leaving the UK and transferring their pensions to India.
Investment Flexibility: These schemes provide a wide range of investment options tailored to individual preferences and risk profiles of the NRI.
Currency Options: NRI pension holders can choose to receive benefits in various currencies, which enhances flexibility for NRI retirees.
Regulation and Oversight: QROPS schemes in India are regulated and overseen by Indian financial authorities to ensure compliance with local laws.
Portability: Pension funds can be easily transferred between QROPS schemes or jurisdictions, providing flexibility for retirees.
Retirement Options: In India, various retirement plans and annuity plans are available for NRIs, which include lump-sum withdrawals or regular income payments.
The best QROPS (India) list is mentioned below:
ICICI Prudential QROPS Plan
Kotak Mahindra QROPS Plan
HDFC QROPS Plan
Birla Sun Life QROPS Plan
SBI QROPS Plan
Franklin Templeton QROPS Plan
PNB QROPS Plan
Canara HSBC QROPS Plan
IDBI Federal QROPS Plan
Axis QROPS Plan
The information on eligibility criteria for QROPS (Qualifying Recognised Overseas Pension Scheme) in India is as follows:
Age: Between 18 and 75 years old.
Pension Fund: Hold an active UK pension fund.
Residence:
Indian citizen/ NRI/ PIO/ OCI cardholder.
Foreign nationals residing in India (subject to specific insurer's rules).
No Recent Withdrawals: No withdrawals from the UK pension fund in the past 5 years.
UK Residency Status:
Have already left the UK.
Intend to leave the UK within the next year and have valid proof.
Step 1: Choose a QROPS Provider:
Research and select an appropriate QROPS provider in India aligned with your investment goals.
Step 2: Inform your UK Pension Provider:
Notify your UK pension provider about your intent to transfer funds to a QROPS. They'll provide the necessary forms and information.
Step 3: Complete Transfer Forms:
Fill out required forms from both your UK pension provider and chosen QROPS provider, including CETV, transfer payout, lifetime allowance forms, and KYC documents.
Step 4: Submit Forms and Documents:
Submit completed forms and all necessary documents to both providers.
Step 5: HMRC Approval:
Obtain approval from HM Revenue & Customs (HMRC) in the UK, typically facilitated by your financial advisor.
Step 6: Fund Transfer:
Upon approval, your UK pension fund will be transferred to the chosen QROPS provider in India.
Following are the documents required for UK Pension Transfer to India via QROPS:
| Category | Document | Description |
| Personal Information | Passport | Current passport with photo and signature page |
| PAN Card (India) | Permanent Account Number card for tax purposes in India | |
| Proof of Address in India | Utility bill, bank statement, or other document with your Indian address | |
| Pension Information | UK Pension Scheme Statements | Recent statements showing pension details and contributions |
| Transfer Request Form | Provided by your UK pension provider | |
| Tax Residence Certificate (India) | Issued by Indian tax authorities confirming your residency | |
| Tax Residence Certificate (UK) | Issued by UK tax authorities confirming your non-residency | |
| QROPS Transfer Approval (Optional) | From HMRC if transferring to a Qualifying Recognized Overseas Pension Scheme (QROPS) in India | |
| Financial Information | Bank Details (India) | Bank account information for receiving transferred funds |
| Foreign Account Tax Compliance Act (FATCA) Form (Optional) | Required by some US-linked pension providers’ |
Choose a QROPS provider
Gather documents
Apply for QROPS transfer
Transfer funds
Invest your funds
QROPS: Allows transferring UK pension funds overseas.
SIPP: Used for investing within the UK by UK residents.
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
11 Dec 2024
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