International Pension Plans (IPP)

International Pension Plans can be a highly efficient and flexible way of providing for retirement, and the succession planning needs of Internationally mobile employees and expatriate individuals. 

IPPs can be used in locations where little or no pension legislation exists or pension providers are non-existent or extremely limited. Such areas include Africa, Asia, Middle East, Eastern Europe and South America. The IPP is highly flexible and the rules are straight forward, which means the pension scheme is capable of being customised to suit your circumstances and your needs.

Our International Pension Plan is established as an irrevocable trust under the laws of, and administered in, Guernsey through our local licensed and regulated trust company. Although the trustees administer the scheme, the corporate or IFA may be appointed as the advisor over the assets in the scheme, in particular the investment thereof.

Although the plan may be established in Guernsey, it will not be liable to local tax as long as the member/employee is not resident at the time the plan is established or subsequently, when they take any benefit. However, a member/employee may be liable to tax in the country of their residence at the time benefits are taken. 

Summary of the Benefits of an IPP

• Can be established by a company or individual
• Flexibility on establishing the plan for the corporate, the employees or individual members
• Available in a multitude of currencies and flexible investment options
• No limit on contributions which can be made or underlying fund size
• No maximum age at which you can invest into the plan (minimum age is 18 years)
• Able to consolidate and transfer benefits from other pension arrangements
• Assets held in the plan grow free of taxation – except for withholding taxes (Guernsey does not have any Inheritance Tax, Capital Gain Tax and no Income Tax for non residents)
• Plan proceeds paid out gross and not liable to Guernsey Tax*
• May get formal recognition (‘approval’) from Guernsey’s Income Tax Department where appropriate
• Greater flexibility on drawing benefits
• Availability to draw a lump sum on termination of service or retirement 
• Discretion over distributions of residual fund upon death of employees/members.

 *Unless you become resident for tax purposes in the Bailiwick of Guernsey.

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