QROPS Poland: Should British Expats Review or Transfer Their UK Pension?

📚 In this series

This collection of articles explores everything British expats and returning Poles need to know about UK pensions and retirement in Poland. From claiming your UK State Pension abroad to understanding tax rules, SIPPs, and double taxation treaties, the series provides clear, practical guidance to help you make confident financial decisions.

QROPS Poland – Key Takeaways

If you already have a QROPS, especially one set up 5–10+ years ago, a review is often essential due to high fees, outdated structures, or poor performance.
If you’re moving to Poland, a QROPS is not automatically the best choice. A modern UK SIPP may offer lower fees, better flexibility, and stronger FCA protection.
Many older Gibraltar and Malta QROPS are wrapped inside commission-heavy bonds.
A second opinion can uncover unnecessary costs, inappropriate investments, and tax optimisation opportunities.
Your choice should reflect Polish tax treatment, long-term residency, currency needs, and whether you may return to the UK.

Who This Post Is For

This article is designed for:

1) Brits already living in Poland with an existing QROPS

You may need a review or second opinion if:

your pension hasn’t grown as expected,
fees seem high,
you’ve lost contact with your adviser,
you don’t understand how Polish tax affects your pension.

2) Brits considering moving to Poland and unsure whether to transfer to a QROPS

You may be evaluating QROPS versus keeping your pension in a UK SIPP, especially around:

tax,
fees,
investment choice,
flexibility,
long-term residency.

Case Study: David, 62 — British Expat in Poland for 12 Years

Background

David moved from Manchester to Warsaw in 2013 to be with his Polish partner. In 2015 he transferred his £420,000 UK pension into a Gibraltar QROPS, recommended by an adviser that he no longer has contact with.

Today, almost ten years later:

the QROPS is worth £445,000 (minimal growth),
his annual fees total 3.7%,
investment funds are old-fashioned, commission-based,
communication from the provider is generic and unhelpful.

Issues Identified During Review:

QROPS was wrapped inside an old offshore insurance bond
Multiple, opaque fee layers
Medium-high risk allocation despite David being a more balanced investor
No guidance on Polish taxation of pension income
Restricted investment options
No ongoing adviser support

Outcome After Second Opinion:

Fees reduced by 50%
Investment portfolio aligned with David’s real risk tolerance
Clean structure with transparent costs
Full clarity on Polish pension tax rules
Clear long-term drawdown strategy aligned with residency in Poland

Lesson:

Older QROPS arrangements often underperform not because the QROPS is inherently bad, but because the product wrapper, fees, and advice have not been reviewed in years.

Do You Still Need a QROPS in Poland?

A QROPS can still be appropriate for some British expats, but it is no longer the default choice it was in the mid-2010s.

**When a QROPS may be appropriate**

You are permanently leaving the UK and will live in Poland long-term
You want the ability to hold investments in EUR
Your UK pensions are very large, and you historically planned around the lifetime allowance
You want pension assets to sit outside the UK regime, anticipating rule changes

When a UK SIPP is often better

You want lower and more transparent fees
You want stronger FCA consumer protection
You may return to the UK later in life
You want full UK pension freedoms in drawdown
You want broad, low-cost investment choice
You don’t need complex offshore structures

Comparison Table: QROPS vs SIPP for Brits Living in Poland

Feature	QROPS	UK SIPP
Fees	Often higher (2.5%–4%+), especially older schemes	Typically lower (1.5%–2%)
Consumer protection	Depends on overseas jurisdiction	Strong FCA protection + UK Ombudsman
Investment flexibility	Varies, sometimes limited	Wide choice
Currency options	EUR/GBP multi-currency	Many SIPPs now offer multi-currency
Drawdown flexibility	Jurisdiction-dependent	Full UK pension freedoms
Best for	Permanent non-UK residents with specific needs	Most British expats in Poland
Polish tax	Taxed based on residency	Taxed based on residency

Summary: For many Brits, a modern SIPP is more flexible and cost-effective unless a QROPS is needed for a defined purpose.

Useful Resources

🔗 HMRC ROPS List

🔗 UK–Poland Double Tax Treaty

❓FAQ: QROPS Poland

1. Do I need a QROPS if I live in Poland?

Usually not. Poland taxes pensions based on residency, so a SIPP will often be simpler and cheaper.

2. Should older QROPS be reviewed?

Yes, absolutely. Especially those created 5–10 years ago or those wrapped in insurance bonds.

3. Are QROPS more expensive?

Typically yes. Many older QROPS have multiple fee layers.

4. Can I move my QROPS back to the UK?

Often yes, subject to product rules and exit charges.

5. How does Poland tax QROPS income?

Exactly the same way it taxes SIPP income — i.e. it is taxed based on your Polish residency.

6. Are Gibraltar QROPS suitable for Poland?

Usually not. They can have restricted investment choice, less favourable tax treatment, and higher fees.

7. Is the UK 25% tax-free lump sum available in Poland?

It depends on your circumstances. Personal tax advice is needed.

8. Do QROPS help with UK inheritance tax?

Possibly. It will depend on your residence status and future UK rule changes.

9. What do I do if my QROPS adviser has disappeared?

You can appoint a new adviser and request a full QROPS review.

10. Are SIPPs better for most expats?

For many Brits in Poland, yes. This is due to lower fees, greater flexibility, and FCA protection.

Thinking of Retiring in Poland?

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📚 Further Reading

🧠 Final Thoughts

Whether you already live in Poland or are planning to move, deciding between keeping, reviewing, or transferring a QROPS depends on fees, flexibility, tax, and your future residency plans.

Most older QROPS schemes I review are not performing as intended simply because they haven’t been reviewed in years.

A fresh look can improve growth, clarify tax, and remove unnecessary costs.

Talk to an Expert

Considering a QROPS in Poland — or already have one from years ago? For many Brits living in Poland, a modern UK SIPP can be lower cost, more flexible, and backed by FCA protection. Older Gibraltar or Malta QROPS — especially those wrapped in commission-heavy bonds — often carry high fees and outdated structures that quietly erode returns.

I’m Ross Naylor, a UK-qualified Chartered Financial Planner & Pension Transfer Specialist with nearly 30 years’ experience helping British expats in Poland review QROPS arrangements, compare them with SIPPs, and align withdrawals with Polish tax, currency needs, and long-term residency plans.

If your QROPS hasn’t grown as expected, fees look steep, you’ve lost contact with the original adviser, or you’re unsure how Polish taxation applies, I’ll provide a clear, impartial second opinion and a practical plan.

Book a QROPS/SIPP second opinion