Navigating UK pension options while living in Poland can be complex, especially post-Brexit. Whether you’re looking to transfer your UK pension to Poland or explore alternatives like an international SIPP, understanding your choices is crucial. This guide outlines the best solutions for managing your UK pension while residing in Poland.
For Brits living in Poland (or Poles who have returned home after living in the UK), one of the big questions involves what to do with any pension schemes that have been accumulated in Britain.
Firstly, unfortunately, the answer to the question of whether you can transfer your UK pension to a scheme in Poland, is, no you can’t.
However, this does not end your options.
For anyone who is resident in Poland and has a UK pension, there are other potential courses of action open to you.
Option 1 – Transfer Your Pension to an International SIPP
A SIPP (Self Invested Personal Pension) is a pension scheme that is established under trust in the UK.
It allows you to accept the cash equivalent transfer value (CETV) from a defined benefit scheme or the funds from a defined contribution scheme.
Some of the benefits of transferring your pension to such a structure are as follows:
✔️ It is covered by the UK Poland double taxation treaty.;
✔️ You have flexibility in terms of how your pension is invested;
✔️ You have the option to hold your pension in a currency that is more closely matched to your future expenses and liabilities (e.g. EUR);
✔️ You have flexibility in terms of how pension income and lump sums are withdrawn (from minimum pension age of 55);
✔️ You potentially have greater flexibility to decide who will be nominated as beneficiaries under your pension.
Option 2 – Do nothing
That’s right, leave your pension where it is.
Although it would still be worth reviewing the investments within your pension to make sure that they are in line with your objectives and risk profile.
Certainly, if your pension is a defined benefit/final salary scheme, there may be very good reasons for leaving it where it is.
At the very least, you should be fully aware of the benefits available through your current scheme before considering giving them up.
Warning!
I recently heard from a client in Poland that his UK pension provider was refusing to let him take his tax-free lump-sum because of Brexit.
This is absolute nonsense on the part of the pension company.
If your pension provider says the same, find another one.
Option 3 – Qualifying Recognized Overseas Pension Scheme (QROPS)
Up until November 2021, a QROPS would have been an option for Polish residents and would have certainly have been worth considering for anyone approaching the UK pension Lifetime Allowance.
However, due to new rules introduced by the UK government, this is no longer a viable option.
QROPS tax treatment in Poland
If you are resident in Poland and already have a QROPS, it is vitally important that you understand the implications of any double taxation treaty between Poland and the country in which your QROPS is located.
In some cases it will be much less favorable than the treaty between the UK and Poland.
Case Study 1: Retiring to Rural Poland with a UK Pension
When David and Justyna (names changed) moved to a small village in rural Poland, they were looking forward to a simpler life – long walks, outdoor adventures, time spent volunteering, and helping on the family farm.
But when David tried to access his UK pension, things got complicated.
The Problem: He Couldn’t Access His Pension
David had spent over 30 years working in the UK.
Like many people, he’d built up a sizeable pension pot in a UK-based provider and planned to gradually draw from it using flexi-access drawdown (FAD).
But when he contacted his pension provider, he was told:
❌ “Because you no longer live in the UK, we can’t offer you FAD.”
His options were reduced to just two:
- Buy an annuity (which he didn’t want)
- Take 100% of his pension as a lump sum, triggering:
- Likely UK withholding tax, and
- 32% tax on most of the lump sum in Poland
Adding to the Frustration: UK Advisers Refused to Help
David then approached several UK financial advisers for help, including the one he’d used for years.
But every adviser gave the same answer:
❌ “Sorry, we can’t work with you now that you’re not UK-resident.”
This left David feeling stranded, despite having a sizeable pension pot and clear advice needs.
The Solution: Transfer to an International SIPP
After speaking to us, David was relieved to learn that there was a way forward.
We helped him transfer his UK pension into an International SIPP.
An international SIPP is a regulated UK pension structure specifically designed for British expats.
✅ It keeps his pension in the UK regulatory framework
✅ It allows full flexi-access drawdown, even while living abroad
✅ It avoids triggering a large, unnecessary tax bill
✅ It gives him the control and flexibility he originally planned for
We also helped him apply for a Polish NT tax code so that future withdrawals from his pension would be taxed only in Poland (not in both countries), under the terms of the UK–Poland tax treaty.
Other Considerations
David and Justyna are now well integrated in Poland.
He’s learning the language, enjoying the outdoors, and involved in local volunteering.
They also:
- Still own a flat in Bath (currently rented out)
- Have a £10,000 emergency fund
- Hold UK wills but need to draft Polish wills too
- Want to ensure Justyna is protected long term—she’s 47, in good health, and the named beneficiary on his pension
Looking Ahead
With an International SIPP in place and a clear tax strategy mapped out, David now has peace of mind that:
- His pension is accessible
- He won’t face punitive tax charges
- He can draw income flexibly to suit their lifestyle
He summed it up perfectly in our last meeting:
“I don’t want complexity—I just want to know the money’s there when we need it.”
Case Study 2: Why Robert Moved His Gibraltar QROPS Back to the UK
When Robert (name changed) moved to Poland 20 years ago, he had no idea that his pension decisions would come back to haunt him.
Now aged 54, Robert found himself trapped in an expensive, inflexible pension scheme – one that didn’t work for his life in Poland.
The Backstory
Nine years ago, Robert transferred his UK pensions into a Gibraltar QROPS on the advice of a financial adviser who was then based in Poland.
At the time, it sounded like a smart move.
But the adviser has since left Poland, and Robert has spent the last few years increasingly frustrated by the results:
- Total annual costs over 3%
- Poor fund performance
- Value of the pension has barely moved in nine years
The Real Problem: Poor Structure and Double Taxation
The biggest issue wasn’t just performance—it was unsuitability.
✅ Gibraltar has no double tax treaty with Poland
❌ That means double taxation on pension withdrawals
❌ No access to the 25% UK tax-free lump sum
❌ Retirement income was limited to capped drawdown only
In short, Robert was stuck with an outdated, tax-inefficient pension that didn’t reflect where he lived or how he wanted to retire.
The Solution: Move the QROPS to an International SIPP
After reviewing his options, we recommended transferring the QROPS back into the UK system—specifically into an International SIPP.
This gave Robert:
✅ Lower costs – reduced by over 40% per year
✅ Access to flexi-access drawdown from age 55
✅ The ability to take 25% tax-free when he retires
✅ Better investment choice and full transparency
✅ A pension structure that is recognised under UK-Poland tax rules
The Outcome
Robert now has a pension he understands, in a structure that gives him flexibility and keeps more money in his pocket.
With clearer reporting, easier online access, and a transparent charging structure, he feels back in control of his retirement.
He told me:
“I wish I’d done this years ago. I finally feel like the pension is working for me, not against me.”
Key Takeaways
If you’re a British expat in Poland and transferred your pension into a QROPS years ago, it may no longer be fit for purpose.
❗ High fees
❗ Limited income options
❗ Double taxation risk
❗ No tax-free lump sum
An International SIPP could give you the control, tax-efficiency and flexibility you were originally promised but never received.
Transferring a UK Pension to Poland
FAQs
No, you cannot transfer your UK pension directly to a Polish pension scheme.
However, alternative options exist.
You can either:
Transfer your pension to an International SIPP (Self-Invested Personal Pension)
Leave your pension where it is but review its investments
Consider other financial planning strategies based on your circumstances
An International SIPP is a UK-based pension scheme that allows you to transfer funds from a defined benefit or defined contribution pension.
It offers flexibility in investment, currency choice, and withdrawals while being covered by the UK-Poland double taxation treaty.
Your UK pension provider will deduct tax at source from any pension payments, often using an Month 1 emergency tax code.
You can reclaim the tax from HMRC, but this takes time and is a hassle.
Alternatively, you can apply for a No Tax tax code and then, your pension provider will make your payments without deducting UK tax.
You may be more limited in your options for taking your pension funds.
UK pension providers often enforce restrictive rules for people living outside the UK.
Some UK pension providers create difficulties for expats, but Brexit has not legally changed your right to access your pension.
If your provider refuses to provide you with the ability to flexibly access your pension, you should consider switching providers.
Since November 2021, a QROPS is no longer a viable option for Polish residents due to new UK government regulations.
In addition, if you live in Poland and already have a QROPS, you should seek a second opinion.
Your decision should be based on factors such as your financial goals, tax implications, and pension type.
Seeking professional financial advice can help determine the best course of action.
Post Brexit, most UK Independent Financial Advisers (IFAs) will refuse to work with EU residents.
However, sites like the Personal Finance Society Find An Adviser site will enable you to find a local financial adviser that is qualified to advise on UK pensions.
Yes, if you transfer your pension to an International SIPP, you can choose to hold your pension in euros, reducing currency exchange risks.
Conclusion
Managing your UK pension while living in Poland requires careful planning.
While a direct transfer of a UK pension to Poland isn’t possible, options like an international SIPP can provide flexibility and tax efficiency.
Understanding the best approach ensures you maximise your retirement benefits while complying with UK and Polish regulations.
As a UK-qualified Chartered Financial Planner who has lived in Poland for nearly 25 years, I can help.
Use this link to schedule a “no strings” introductory call.
