QROPS for EU and Spain Residents After the 2024 Charge Change (2026)

For UK expats living in Spain and across the EU, the QROPS landscape changed materially at the October 2024 Budget. The exclusion that had allowed many EU residents to transfer to an EEA based QROPS without the Overseas Transfer Charge was removed. Understanding the new position is essential before considering any overseas transfer from Spain or elsewhere in the EU.

In short

• The EEA and Gibraltar exclusion from the 25% charge was removed on 30 October 2024.
• Spain-resident transfers to an EEA QROPS now generally face the 25% charge.
• The charge is avoided only where you live in the same country as the recognised scheme.
• There are few, if any, recognised schemes in Spain itself for this purpose.
• Many Spain residents retain a UK SIPP and draw income under the UK-Spain treaty.

The change that affects Spain and the EU

Until 30 October 2024, a UK expat in Spain could often transfer to a QROPS based in the EEA, for example in Malta, without the 25% Overseas Transfer Charge, because EEA and Gibraltar schemes were excluded. From that date the exclusion was removed. The charge now applies to such transfers unless the member is tax resident in the same country as the scheme. For a Spain resident transferring to a Malta based scheme, that condition is not met, so the charge applies.

Is there a charge-free route from Spain?

The only general way to avoid the charge is to transfer to a recognised scheme based in the country where you live. For Spain that would require a Spanish recognised scheme suited to receiving a UK transfer, and in practice such options are very limited. As a result, most Spain-resident expats find there is no straightforward charge-free QROPS route, which changes the calculation considerably.

What many EU and Spain residents do instead

With the EEA exclusion gone, a common course is to keep a UK pension in a UK SIPP, where a provider or international SIPP will hold it, and to draw income that is taxed under the UK-Spain double taxation agreement, typically with an NT tax code so UK tax is not deducted at source. This avoids the Overseas Transfer Charge entirely and keeps the pension in a familiar UK-regulated wrapper.

Confirm the current position

These rules changed recently and are administered closely. Anyone in Spain or the wider EU weighing a transfer should confirm the current charge treatment for their exact circumstances and destination, check the scheme's listing, and take advice from an adviser regulated for both the UK and Spain.

FAQ

Can I still transfer to a QROPS from Spain without the charge?

Generally only if you transfer to a recognised scheme based in the same country you live in. Transfers to an EEA scheme such as Malta now attract the 25% charge for Spain residents.

What changed in October 2024?

The exclusion from the Overseas Transfer Charge for QROPS based in the EEA and Gibraltar was removed for transfers made on or after 30 October 2024.

Are there recognised schemes in Spain?

Options suited to receiving a UK transfer are very limited, so most Spain residents cannot meet the same-country exclusion. Verify the current position for your circumstances.

What is the alternative to a QROPS in Spain?

Many keep a UK SIPP and draw income taxed under the UK-Spain treaty, usually with an NT code, avoiding the Overseas Transfer Charge altogether.

Does this apply across the EU?

Yes. The removal of the EEA and Gibraltar exclusion affects EU residents generally, not just those in Spain.