France has long been one of Europe’s most popular destinations for British expatriates. From its relaxed pace of life and Mediterranean climate to its healthcare system and culture, it’s easy to see why so many UK nationals choose to live or retire here.
However, one area that requires careful planning is what to do with your UK pension once you’ve made the move. Managing your pension abroad can be complex, particularly when it comes to taxation, currency, and inheritance planning.
For many British expatriates, a QROPS (Qualifying Recognised Overseas Pension Scheme) provides an ideal solution — offering flexibility, control, and the potential for long-term tax efficiency.
At Blacktower Financial Management, we’ve been helping UK nationals in France protect, grow, and manage their wealth for nearly four decades. Here’s how a QROPS could help you unlock your pension’s full potential and secure your financial future in France.
What Is a QROPS?
A Qualifying Recognised Overseas Pension Scheme (QROPS) is a pension structure based outside the UK but recognised by HM Revenue & Customs (HMRC).
QROPS were introduced in 2006 to allow individuals who have built up UK pension savings to transfer their funds abroad when relocating permanently, without triggering UK tax penalties.
These schemes are designed for long-term expatriates who wish to manage their pensions internationally, offering flexibility in investment options, currency, and access.
If you live in France, a QROPS can give you greater control over your retirement income, while also helping you manage your wealth in line with local tax and inheritance laws.
Why UK Expats in France Choose QROPS
France has a sophisticated tax system and specific rules surrounding pensions, inheritance, and income. For British expatriates, a QROPS can make navigating these complexities simpler and more efficient.
Here are the key benefits of transferring your UK pension to a QROPS:
1️⃣ Tax Efficiency
One of the main attractions of a QROPS is tax efficiency.
Under the UK–France Double Taxation Treaty, most pension income is taxable only in France, not in the UK. This means your QROPS provider can pay income gross (without UK tax deducted), and you’ll only pay tax under French law.
While France does tax pension income, with the right structure, you may benefit from favourable rates and allowances, especially if your pension is treated as a “rente viagère à titre onéreux” (a life annuity subject to partial tax exemption).
Working with a cross-border adviser ensures your withdrawals are structured efficiently — helping you make the most of your income and reduce unnecessary tax exposure.
2️⃣ No UK Lifetime Allowance (LTA) Limit
In the UK, pension savings are subject to the Lifetime Allowance (LTA) — historically capped at £1,073,100 — meaning any funds above that limit could face a tax charge of up to 55%.
Once transferred to a QROPS, your pension is no longer bound by the UK Lifetime Allowance, allowing your savings to grow without restriction.
For higher earners or those with multiple pension pots, this can lead to significant tax savings over time.
3️⃣ Investment Flexibility and Currency Choice
A QROPS gives you complete control over how your pension is invested. You can tailor your portfolio according to your personal risk profile, time horizon, and financial goals.
Your QROPS can hold a diverse range of assets, including:
- Equities and bonds
- ETFs and managed funds
- Cash and alternative investments
Perhaps most importantly, a QROPS allows you to hold and draw income in euros, eliminating exchange rate volatility between GBP and EUR — a key advantage when living and spending in France.
4️⃣ Estate Planning and Inheritance Advantages
French inheritance law is complex, particularly for expatriates with assets in multiple jurisdictions. A QROPS can be an effective tool for cross-border estate planning.
Funds held within a QROPS are generally outside the scope of UK Inheritance Tax (IHT), meaning your pension can pass to your beneficiaries free of the 40% IHT charge that applies to UK-based assets.
You can also nominate your beneficiaries directly, allowing your pension wealth to be transferred smoothly and efficiently, without becoming entangled in the UK probate process.
Combined with the right advice on France’s own inheritance and succession rules, a QROPS ensures your family receives the full benefit of your lifetime savings.
5️⃣ Portability and Long-Term Stability
A QROPS is designed for international mobility. If you later decide to move to another country, your QROPS can often be transferred to another HMRC-recognised jurisdiction — maintaining the same tax-efficient structure.
This flexibility makes QROPS particularly appealing to retirees who value the freedom to relocate within Europe or globally, without worrying about having to restructure their pension every time they move.
QROPS vs. SIPPs: Which Is Right for You?
For UK expatriates in France, the decision between a QROPS and a SIPP (Self-Invested Personal Pension) depends on your long-term goals, pension size, and residency intentions.
| Feature | QROPS | SIPP |
|---|---|---|
| Regulation | Based overseas, HMRC-recognised | Regulated by the UK’s FCA |
| Currency | Multi-currency (EUR, GBP, USD) | Primarily GBP |
| Tax Jurisdiction | Based on country of residence (France) | UK tax regime applies |
| Lifetime Allowance | Not applicable | LTA may apply (historically) |
| Ideal For | Long-term expats abroad | Those with UK ties or plans to return |
If you plan to live in France permanently, a QROPS can provide greater flexibility, tax advantages, and long-term peace of mind — but professional advice is essential before transferring your pension.
How Blacktower Can Help
At Blacktower Financial Management, we specialise in cross-border pension and wealth management for expatriates living in France and across Europe.
Our advisers can help you:
- Review your existing UK pensions.
- Assess whether a QROPS or SIPP is best suited to your goals.
- Manage your investments across currencies.
- Structure your income for tax efficiency under French law.
- Protect your legacy through strategic estate planning.
With offices in the French Riviera, Paris, and Bordeaux, and a track record of over 35 years of advising expatriates, we offer the expertise and local knowledge to ensure your finances are secure and compliant.
Secure Your Retirement in France with Confidence
Your pension is the cornerstone of your retirement. With the right planning, you can enjoy your life in France knowing that your wealth is protected and working for you.
A QROPS offers flexibility, tax efficiency, and long-term control — helping you make the most of your pension and live the retirement you’ve always envisioned.
📞 Book your complimentary consultation today
Speak to one of Blacktower’s expert financial advisers in France to learn how a QROPS can help you unlock your UK pension’s full potential and secure your financial future abroad.