QROPS for UAE and Dubai Residents: Transfer Rules (2026)

The UAE, and Dubai in particular, is home to a large community of British expats, many of whom hold UK pensions. The obvious question is whether they can move those pensions into a local QROPS. The short answer is that there is no UAE based QROPS to transfer to, which has important consequences for the Overseas Transfer Charge.

In short

• There is no UAE based scheme on HMRC's recognised overseas pension list.
• Because you cannot live in the same country as a UAE QROPS that does not exist, the 25% charge applies to any QROPS transfer.
• The UAE has no personal income tax, but UK rules still govern the transfer.
• Many UAE residents keep a UK SIPP, often an international SIPP, instead.
• An NT tax code can allow UK pension income to be paid gross under the UK-UAE treaty.

Why there is no UAE QROPS

For a scheme to receive a UK transfer free of the Overseas Transfer Charge on the same-country basis, it must be a recognised scheme based in the country where you live. The UAE does not have a pension scheme on HMRC's recognised list available to expat transfers, so this exclusion cannot be met. Any transfer to a QROPS elsewhere, while you live in the UAE, would therefore generally attract the 25% charge, because you would not be resident in the same country as that scheme.

The October 2024 change reinforces this

Before 30 October 2024, a UAE resident might have transferred to an EEA or Gibraltar QROPS without the charge. That route closed when the EEA and Gibraltar exclusion was removed. Now such a transfer, made by someone living in the UAE, falls within the 25% charge. The combination of no local QROPS and the removal of the EEA exclusion leaves very little charge-free room for UAE residents.

What UAE residents tend to do instead

Because the UAE levies no personal income tax, a UAE resident who secures an NT code can often draw UK pension income without UK tax deducted and with no local income tax either. That outcome is achieved through a UK SIPP and the tax treaty, not through a QROPS, which is why a QROPS is rarely the right tool for UAE residents.

Confirm before acting

Pension and tax rules are administered closely and change, so anyone in the UAE weighing their options should verify the current QROPS position and treaty treatment for their circumstances, and take advice from an adviser regulated for both the UK and their situation in the UAE.

FAQ

Is there a QROPS in the UAE?

No. There is no UAE based scheme on HMRC's recognised overseas pension list available for expat transfers.

Will I pay the Overseas Transfer Charge as a UAE resident?

Generally yes on any QROPS transfer, because you cannot be resident in the same country as a UAE QROPS that does not exist, so the same-country exclusion cannot be met.

Does the UAE's lack of income tax help?

It helps with income once you draw your pension, especially with an NT code, but it does not remove the UK Overseas Transfer Charge on a QROPS transfer.

What do most UAE expats do?

Many retain a UK SIPP or international SIPP and apply for an NT tax code, allowing UK pension income to be paid gross under the UK-UAE treaty.

How do I draw my pension tax efficiently in Dubai?

Typically by holding a UK SIPP and obtaining an NT code so income is paid without UK tax, with no UAE income tax to pay. Confirm the treaty position and take advice.