Renowned for its stability, innovation, and exceptional quality of life, the Netherlands has become one of Europe’s most attractive destinations for expatriates planning their retirement. Whether you’re drawn by its world-class healthcare, cultural vibrancy, or international accessibility, retiring in the Netherlands can offer comfort, opportunity, and long-term financial security.
However, as a UK or international expatriate, achieving that security requires careful financial planning — especially when it comes to managing pensions, tax exposure, and estate protection. One increasingly popular solution among globally mobile retirees is the QNUPS (Qualifying Non-UK Pension Scheme).
Designed to provide a flexible, internationally recognised pension framework, a QNUPS can help you grow your wealth tax-efficiently, protect your assets, and secure a prosperous retirement in the Netherlands.
What Is a QNUPS?
A QNUPS (Qualifying Non-UK Pension Scheme) is an overseas pension scheme recognised by HMRC. Introduced in 2010, QNUPS were created to allow individuals — particularly those living outside the UK — to continue saving for retirement in a compliant and tax-efficient structure, while also gaining potential protection from UK Inheritance Tax (IHT).
Unlike a QROPS (Qualifying Recognised Overseas Pension Scheme), which allows UK pension transfers, a QNUPS can be funded with a wide range of assets — such as cash, investments, or property — making it an attractive option for expatriates with existing wealth who want to structure their retirement more efficiently.
The Benefits of a QNUPS for Expats in the Netherlands
For British and international retirees in the Netherlands, a QNUPS can provide a unique combination of tax advantages, flexibility, and estate-planning benefits.
1️⃣ Potential Protection from UK Inheritance Tax
Because a QNUPS is recognised by HMRC as a legitimate pension structure, assets held within it are typically excluded from your UK estate. This means they are not usually subject to UK Inheritance Tax (IHT) — currently charged at 40% above the nil-rate band.
For UK nationals or former UK residents with family and financial ties to Britain, this can significantly reduce the inheritance tax burden and help preserve wealth for future generations.
2️⃣ Tax-Efficient Growth
Investments within a QNUPS grow free from UK capital gains and income tax, allowing your retirement capital to accumulate efficiently.
Although withdrawals are normally taxable in your country of residence (in this case, the Netherlands), careful financial planning — especially under the UK–Netherlands Double Taxation Treaty — can help optimise your retirement income and reduce your overall tax exposure.
3️⃣ Flexibility and Investment Freedom
A QNUPS allows broad investment freedom. You can hold a diverse portfolio that may include equities, bonds, ETFs, property, or alternative assets, offering greater control and flexibility than many traditional pension products.
This flexibility means your investment strategy can be tailored to your goals, time horizon, and risk tolerance — and adjusted over time as your needs evolve.
4️⃣ No Lifetime Allowance Restrictions
Unlike traditional UK pensions, QNUPS are not bound by the UK Lifetime Allowance (LTA). This allows high-net-worth individuals to contribute larger sums without incurring punitive UK tax charges.
For those who have already reached their pension limits in the UK but wish to continue building retirement wealth, this can be a significant advantage.
5️⃣ Estate Planning and Wealth Preservation
A QNUPS can play an important role in cross-border estate planning. Since it can continue to provide benefits to your dependents after your death, it offers a structured way to pass on wealth efficiently and privately.
This is especially important in the Netherlands, where inheritance tax (erfbelasting) can apply to worldwide assets if you’re considered a Dutch tax resident. Holding some of your wealth within a QNUPS may help reduce the overall taxable value of your estate.
QNUPS vs. QROPS: Understanding the Difference
While both are legitimate overseas pension schemes recognised by HMRC, their purposes and structures differ.
| Feature | QNUPS | QROPS |
|---|---|---|
| Purpose | Build or supplement retirement savings using non-pension assets | Transfer existing UK pension funds abroad |
| Funding Source | Cash, investments, or property | Existing UK pension(s) |
| Lifetime Allowance | No restrictions | Subject to UK LTA at time of transfer |
| IHT Protection | Typically outside UK estate | May offer protection, depending on jurisdiction |
| Ideal For | UK nationals or expatriates seeking wealth and estate planning flexibility | Individuals transferring pension funds overseas |
For many expatriates in the Netherlands — especially those with assets held outside formal pensions — a QNUPS can complement existing retirement and investment strategies, providing additional flexibility and long-term tax efficiency.
Why QNUPS Can Be Particularly Effective in the Netherlands
The Netherlands is known for its progressive but complex tax system, which includes taxation of global assets under the “Box 3” wealth tax regime. By placing some of your assets into a compliant QNUPS, you may be able to remove them from Box 3 taxation, depending on how your residency and pension arrangements are structured.
In addition, QNUPS are typically multi-currency, making them ideal for expatriates who continue to receive income or hold assets in GBP, USD, or EUR. This helps mitigate exchange-rate risk, especially for retirees drawing an income in euros but maintaining savings in other currencies.
Why Professional Advice Matters
While the advantages of a QNUPS are clear, the rules governing them — and their interaction with Dutch, UK, and international tax law — can be complex.
Working with a qualified cross-border financial adviser ensures your QNUPS is:
- Structured correctly for your residency and tax status.
- Fully compliant with HMRC and Dutch regulations.
- Integrated into your broader retirement, investment, and estate plan.
At Blacktower Financial Management, our advisers have over 35 years of experience helping expatriates across Europe protect and grow their wealth. We specialise in cross-border pension planning, tax-efficient investment strategies, and estate protection for internationally mobile clients.