If you've spent any time researching what to do with your UK pension now you're living in Europe, you'll have run into two acronyms again and again: QROPS and SIPP. You'll also have noticed that the answer to "which is better?" seems to depend entirely on who's writing — and the people most eager to tell you that a QROPS is the answer are often the ones who get paid when you transfer into one.
Let me give you a straighter version. Both can be sensible homes for an expat's pension, but they suit very different situations, and the rules around QROPS in particular have changed so much in the last couple of years that a lot of the advice still floating around online is simply out of date. Here's how to think about the choice.
What is a SIPP?
A SIPP — a Self-Invested Personal Pension — is a UK pension. It stays inside the UK system, regulated by UK rules and protected by UK financial regulation. The "self-invested" part means it gives you a wide choice of investments and the flexibility to draw your money in the modern, flexible way (pension freedoms), rather than being forced into an annuity.
For an expat, the key point is that an international SIPP is simply a SIPP designed to be held and managed by someone who lives abroad. It can usually offer multi-currency facilities, work with an overseas-based adviser, and pay benefits to a non-UK bank account — solving the practical headaches that make ordinary UK pensions awkward to manage from the Continent.
Crucially, keeping your money in a SIPP keeps you inside the UK's network of double-taxation treaties. That's a quiet but significant advantage, which I'll come back to.
What is a QROPS?
A QROPS — Qualifying Recognised Overseas Pension Scheme — is an overseas pension scheme that meets HMRC's conditions to receive a transfer from a UK pension. The idea is that you move your pension out of the UK system and into a scheme based somewhere else — historically Malta, Gibraltar, or the Isle of Man have been the common jurisdictions for European expats, because Switzerland's own pension structures don't qualify.
A QROPS was originally pitched as the natural choice for anyone leaving the UK: hold your pension in your new "home" jurisdiction, potentially in your spending currency, outside UK rules. For some people — particularly those with very large pensions, or those certain they'll never return to the UK and want to sever ties — it can still make sense. But the case is far narrower than it used to be.
The rule change that reshaped the QROPS decision
Here's the development that the older articles miss. Until late 2024, transfers to a QROPS based in the European Economic Area were generally exempt from the Overseas Transfer Charge if you were resident in the EEA. That exemption made QROPS attractive for European expats.
From 30 October 2024, that EEA exemption was removed. The Overseas Transfer Charge is 25% of the amount transferred, and it now applies to many European QROPS transfers that would previously have escaped it. There are still some exemptions — broadly, where you're resident in the same country as the QROPS, or certain employment-linked occupational schemes — but for the typical British expat in Switzerland or the EU transferring to a Malta-based QROPS, the 25% charge is now a real and immediate risk (please verify the current rules and exemptions, as this is exactly the kind of figure that moves).
There's a further change to be aware of: from 6 April 2026, UK rules require scheme administrators of registered pension schemes to be UK-resident, part of a wider tightening of the regime. The direction of travel is clear — the authorities are making overseas transfers harder and costlier, not easier.
Losing a quarter of your pension to a tax charge is not something you undo. So the first question with any QROPS is no longer "is it better?" but "would a transfer even avoid the 25% charge in my specific case — and if not, can it possibly be worth it?"
QROPS vs SIPP: how they actually compare
Rather than a winner-takes-all verdict, it helps to compare them across the things that matter to expats.
Tax on transfer
A SIPP transfer (moving from one UK pension to a UK SIPP) generally triggers no transfer charge — you're staying inside the UK system. A QROPS transfer may now trigger the 25% Overseas Transfer Charge unless a specific exemption applies. This alone rules out QROPS for many people.
Ongoing tax treatment
With a SIPP, your pension income is governed by UK rules and the UK's double-taxation treaties — which, for Swiss and EU residents, generally means lump sums taxed in the UK and regular income taxed where you live, with no double taxation when the paperwork's done correctly. A QROPS shifts you into a different jurisdiction's rules, which can be simpler in some cases and more complex in others, and may interact differently with your country of residence's tax system.
Cost and transparency
This matters more than almost anything else over a 20- or 30-year retirement. SIPPs, particularly modern ones, can be very low-cost and transparent. QROPS have historically carried higher set-up fees, trustee fees, and — in the worst cases I've seen — layers of commission baked into expensive underlying investments. High ongoing charges quietly erode a pension far more than most people realise. Always insist on seeing every layer of cost, in writing, as a percentage and in cash terms.
Flexibility and currency
Both can offer multi-currency options and flexible drawdown. A QROPS can sometimes hold benefits more naturally in your local currency, which appeals to people worried about sterling. But an international SIPP can usually achieve a similar effect, and you can manage currency risk through how the pension is invested rather than by moving the whole scheme abroad.
Returning to the UK
If there's any chance you'll move back to Britain, a SIPP keeps things simple — you never left the system. Unwinding a QROPS, or having transferred out only to return, can create awkward and sometimes costly complications.
So which is right for you?
For the majority of British expats in Europe I speak to, an international SIPP is the more sensible default — it keeps costs down, preserves UK tax-treaty protection, avoids the 25% charge, and works perfectly well from abroad. A QROPS tends to make sense only in particular cases: very large pensions where specific allowances bite, people permanently and definitely settled in one country, or certain occupational arrangements that qualify for an exemption.
The honest truth is that "QROPS vs SIPP" is the wrong opening question. The right ones are: where will you actually retire, in what currency will you spend, what does each option cost over your lifetime, and what does the tax treaty between the UK and your country say? Answer those, and the structure usually chooses itself.
FAQ
Is a QROPS still worth it in 2026? For some people, yes — but for far fewer than before the 2024 removal of the EEA exemption. If a transfer would trigger the 25% Overseas Transfer Charge, the bar for it being worthwhile is very high. Each case needs individual analysis against current rules.
Can I have a SIPP if I live in Switzerland or the EU? Generally yes. International SIPPs are specifically designed for non-UK residents and can usually accommodate an overseas address, an overseas adviser, and payments to a local bank account. Availability can depend on your country of residence, so it's worth checking.
Will I pay the 25% charge if I move my pension to a SIPP? No — moving a UK pension into a UK SIPP is a transfer within the UK system and doesn't trigger the Overseas Transfer Charge. That charge applies to transfers out of the UK to a QROPS, subject to the current exemptions.
What's the catch with a "free" QROPS transfer? Be cautious. Transfers promoted as free or commission-paid are sometimes structured so the costs are hidden in the ongoing scheme and investment charges. Over decades, those charges can cost more than any upfront fee. Always ask for a full, written breakdown of every cost before agreeing to anything.
Let's work out which fits your life — not someone's sales target
The choice between a QROPS and a SIPP shouldn't be driven by whoever stands to earn a commission. It should come from a clear look at where you're heading, what each option genuinely costs, and how the tax rules apply to you specifically.
If you'd like that clear look, I offer a free, no-obligation discovery call — fee-transparent, no jargon, and absolutely no pressure to transfer anything. We can simply talk through your pensions and what makes sense for your situation. Book one whenever you're ready.
This article is general information, not personal financial advice. QROPS and SIPP suitability depends entirely on your individual circumstances, and the rules, charges, and tax thresholds described change frequently — always check current figures and take regulated advice before acting. AM Wealth Management is a CISI Chartered firm.