Moving Your UK Pension Abroad 2026/27: QROPS, Drawdown and Tax

You can leave a UK pension in the UK and draw it under UK PAYE, with double-taxation treaty relief, or transfer it to a QROPS. Transfers above your overseas transfer allowance, or that fail the exemption conditions, face a 25% Overseas Transfer Charge. The State Pension is frozen in many countries.

UK pension options when you move abroad

Option	How it works and the tax
Leave the pension in the UK and draw it	The pension stays with your UK provider and is paid to you abroad. It is normally taxed in the UK under PAYE. A double-taxation treaty between the UK and your new country can reduce or remove the UK tax so you are not taxed twice on the same income.
Transfer to a QROPS	A QROPS is a Qualifying Recognised Overseas Pension Scheme that meets HMRC requirements for receiving a UK transfer. Transferring to a non-qualifying scheme can trigger an unauthorised payment tax charge, so the receiving scheme must be on the recognised basis.
Overseas Transfer Charge	A 25% charge applies to a QROPS transfer that exceeds your overseas transfer allowance, or that is not exempt. The allowance is GBP 1,073,100. You usually do not pay the charge on a QROPS provided by your employer, or where you live in the country the QROPS is based in and the transfer is within your available allowance.
UK State Pension abroad	You can claim and receive the UK State Pension abroad if you have enough qualifying National Insurance. It rises each year only in the EEA, Gibraltar, Switzerland, and countries with a social security agreement with the UK (except Canada and New Zealand). Elsewhere it is frozen at the rate you first received.