As a non-UK resident having a SIPP is something many look for. As a non-resident you can’t open a UK SIPP because you will need a UK address.
If you have a SIPP already, there are some circumstances where you can continue to contribute to it, however, a lot of the time you can’t and this leaves the other option of an international SIPP.
What is an International SIPP?
An international SIPP is exactly the same as a SIPP in the UK, however, it is based outside of the UK. This doesn’t mean it’s somewhere suspect, these places can be the Isle of Man, Cayman and Malta. There are many places where you can open an account.
Most of the time, these accounts can be safer than the ones in the UK and I say this because with mainstream accounts in the UK for a single person you are ‘insured’ for up to 85k. Many choose the UK because of it’s regulations and it stops a lot of people losing a lot of money, however, it doesn’t stop poor advisors putting you in to bad funds!
That’s where YOU lose money.
Regulations are good because it stops salespeople saying you need to transfer out and they can cash in on the commissions from the funds and platform. However, international SIPPs still have regulations they are just not as regulated as the UK. However, the FCA does not protect you against bad advice.
Why have an International SIPP?
Here are some of the key reasons why expats have international SIPPs
- The gains are tax free
- Wider investment choice
- Can have all pensions in one place
- List a beneficiary
- Variety of currencies
As you invest in a SIPP the gains that are made within the investment are capital gains and income tax free and because of the wider investment choice you have the potential to find the larger gains depending on your risk profile. You can also invest in more bond structures if you prefer safer investments and guaranteed returns.
A big plus for expats and many who take out a SIPP is that you can transfer all your pensions into it if you wish. Transferring a final salary is much harder due to regulations, however, the other pensions can be relatively straight forward. This makes life a lot easier and you can track what you have.
If you want to read more information on this, my article on Frozen Pensions will help
SIPP Providers and Platforms
I have written a blog on this before and you can read the full article here: Best SIPP Providers and Platforms for UK expats. However, I will go through some below as well.
These have the option to move a SIPPs into if in the U.K or a QROPs or International SIPPs if outside. As well as this you can invest as a platform, these are portable for expats.
All of these are advisor platforms, so will have to speak to an advisor which might have an attached fee for management. However, if the advisor is good, the fee shouldn’t make a blind bit of difference providing it is around the average stated above of 1.2%
Here are a few of my top advised ones and the fees this is not an in-depth review, please read more on my blogs on U.K SIPPs international platforms with ratings or get in touch to see which is the best step for you.
| Platform Name | Fees | Dealing charges | Currency Options | Funds |
| Capital Platform | 0.4% | 0.2% | Yes | 2500+ |
| Ardan International | 0.4% | 45 USD | Yes | 2000+ |
| Custodian | 0.7% | 45 USD | Yes | 5000+ |
| Investor Trust Select | 1% | None | Yes | 2000+ |
In this table, I will do a brief guide on the charges of some of the funds and the platforms this will vary significantly on the commission the advisor takes, the term, and fund charges. Also, note that the advisors can also add a management fee for this.
| Platform Name | Charges P.A (these depend: term, amount and structure | Hidden Charges |
| Friends Providence International reserve bond | 1.2-2% | Mirror Fund, initial advisor coms 5-7% admin charge. |
| Friends Providence International Summit bonds | 1.5%-2.5% | Dealing charges admin charges and initial fees advisor fee 5-7%. |
| Friends Providence International Zenith | 1.3%2.2% | Dealing mirror fund charges 2% admin fees advisor fee 5-7%. |
| Generali Vision professional portfolio bond | 1.2%-2% | Dealing charges 2% admin fees advisor fee 5-7.5%. |
| Hansard International Capital Bond | 1.6%-2.1% | Dealing charges 2% admin fees advisor fee 5-7.5% |
| Investor Trust Evolution plan | 1.2%-1.9% | 5-7% fees, admin charges. |
| Investment trust platinum fund | 1%-1.5% | 5-7% advisor fees admin charges. |
| OMI collective Investment bond | 1.2%-2.4% | Dealing mirror fund charges 2% admin fees advisor fee 5-7% |
| OMI executive Investment bond | 1.7%-2.4% | Dealing mirror fund charges 2% admin fees advisor fee 5-7 |
| Prudentantal International Bond | 1.5%-1.9% | Dealing mirror fund charges 2% admin fees advisor fee 5-7 |
| Royal London Pimms | 1.6%-1.8% | Dealing mirror fund charges 2% admin fees advisor fee 5-7 |
| Royal London Orical | 1.8%-2.1% | Dealing mirror fund charges 2% admin fees advisor fee 5-7 |
How would I transfer into an international SIPP?
Transferring is relatively straight forward, you can do it with an advisor or by yourself. If you are doing it yourself you will need to follow the steps below:
- Speak to your current provider to make sure there are no surrender charges
- Open up an account with a platform
- Request a transfer
- Choose investments
In between all these there will be documents to be signed, source of wealth and identity checks that come with any financial, but this is the basic steps of it.
If you are using an advisor to transfer to an international SIPP it will follow a similar process, however, it will go something like this:
- Need a letter of authority to check the amounts in the pension
- Check there are no surrender charges
- Fill in all the appropriate paper work for the platform, source of wealth and identity checks
- Risk profile
- Decision on investments and portfolio
- Request a transfer
It generally goes in this sort of order, however, they can be moved around slightly to become more efficient.
As we are an online advisory, you don’t have to worry about coming to our offices and we rarely ask for anything to be posted. What we normally do is ask for copies of documents. This also means that you can be a resident anywhere in the world and we can help you with your questions.
Summary of International SIPPs for
International SIPPs in nature are very similar to SIPPs in the UK, however, they are based outside of the UK and in places such as the Isle of Man. This helps with tax efficiency and within the SIPP any gains that are made are income and capital gains tax exempt. When you start to draw on your international SIPPs that’s when you should speak to a financial advisor to see how you can do so efficiently.
There are variety of good points to international SIPPs:
- The gains are tax free
- Wider investment choice
- Can have all pensions in one place
- List a beneficiary
- Variety of currencies
The downside can be the cost if you go into a bad platform and have a bad advisor. You can soon start to see your investment return diminished by fees. However, there are plenty of platforms out there that you can choose from.
If you want to speak to me or ask any questions regarding an international SIPPs please email me and I will schedule a call or answer your questions.
