SIPP for non-UK residents: Complete guide

Planning a move abroad? If you’re thinking of leaving the UK or are already a UK expat living in another country, you’ll need to plan how to manage your finances abroad. One of the most important things to get sorted is your pension.

In this helpful guide, we’ll cover everything you need to know about Self-Invested Personal Pensions (SIPPs) for non-UK residents. This includes what they are and how they work, costs, tax implications and other key considerations.

Remember though - it’s best to seek advice from a financial adviser before making big decisions about your retirement plans.

Also, if you’re looking to move pension savings or other income across international borders, the Wise account from the money services provider Wise could be an ideal solution. It offers low, transparent transfer fees, the mid-market exchange rate and a choice of 40+ currencies. Plus, you’ll get dedicated support and volume discounts when sending large amounts.

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What is a SIPP?

A SIPP is a Self-Invested Personal Pension, a UK-registered pension scheme that gives you control over your retirement savings and investment choices. It’s a type of defined contribution pension.

They differ from standard personal pensions, which typically offer a range of ready-made investment funds and are managed by the pension provider.

With a SIPP, you can choose and manage the investments yourself - although there is also the option to let your SIPP provider do it if you prefer. You also choose how much and how often to pay in.

But otherwise, it works like any other pension by holding your retirement pot in a tax-efficient wrapper.

SIPPs are UK-registered pension schemes that are FCA regulated and abide by UK Government pension rules.

How SIPPs work

Once you’ve chosen a SIPP provider and opened an account, you can then start saving with a lump sum and/or regular contributions.

You can use the provider’s platform to select your investments, or make use of ready-made portfolios or managed solutions if available.

Once you reach retirement age, you can choose from a number of ways to access your money. These include a tax-free lump sum of up to 25% of your pot or as an income over a regular period.¹

Can a non-UK resident have a SIPP?

Yes, one of the best things about SIPPs is they’re available to people who don’t live in the UK.

This is why they’re popular among UK expats who want to retain the regulatory protections on pensions offered by the UK, but also take more control over retirement planning while living abroad.

However, there are some important considerations to bear in mind if you’re a non-UK resident looking to open a SIPP:

• SIPPS are subject to UK pension rules, which means that yours could be affected by any changes to UK Government rules
• When drawing income from your SIPP, you’ll be subject to the UK personal allowance and the 25% limit on pension lump sum withdrawals when you reach retirement age.¹
• You will also be subject to tax rules in the country you’re living in, so it’s important to get professional advice.
• SIPPs are held in the UK and for some, payments are only in GBP - if you’re drawing an income while living abroad, this means you may be subject to currency conversion costs and exchange rate fluctuations.

On this last point, you may want to look at whether you can minimise currency exchange loss by having payments paid into a multi-currency Wise account (depending on the SIPP provider’s rules).

This gives you control over the currency conversion, which could save you a hefty amount as Wise offers low fees for currency conversions and uses mid-market exchange rates (close to what you can see on Google).

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Pros and cons of SIPPS for non-UK residents

Tax implications of international SIPPS for UK expats

One of the most complicated things about pensions - whether you live in the UK or overseas - is tax.

It can be even more complex if you have a UK SIPP but live abroad. This is because while you may benefit from no income tax or CGT on investment growth in your SIPP - and be able to withdraw a tax-free lump sum on retirement - you may still have to pay tax on the income in the country you’re living in.

Your tax treatment depends heavily on the Double Taxation Agreement (DTA) between the UK and your local country.

Another important thing to know is that you will only get UK tax relief on new contributions into a SIPP for the first 5 years after leaving - unless you continue to have UK taxable earnings.²

It’s crucial to get professional tax advice before opening a SIPP, moving a pension abroad or making any other big decisions related to retirement planning.

International SIPPs’ costs

The fees for opening a SIPP as a UK expat tend to include:

• Setup fees
• Annual management fees
• Transaction fees for every investment transaction (i.e. buying and selling shares)
• Exit fees
• Income drawdown fees - for withdrawing money from your SIPP.

What’s the difference between a QROPS and a SIPP?

When looking at pension options for moving abroad, UK expats may face a choice between a QROPS or a SIPP.

A QROPS is a Qualifying Recognised Overseas Pension Scheme, and it’s an HMRC-approved overseas pension scheme located outside the UK. This is unlike a SIPP, which is a UK-based scheme.

You can transfer your UK pension savings into a QROPS, to gain tax advantages and more flexibility in accessing funds in your new country.

Can I keep my UK SIPP if I move abroad?

You can usually keep a UK SIPP if you move abroad, but some providers may restrict whether or how much you can pay into it. You may also lose UK tax relief on contributions.

Many expats choose to use SIPPs as a way of consolidating multiple UK pensions, and gaining more flexibility and control over the management of existing pension pots. It’s a way of managing retirement funds better, rather than using it to actively save.

How to manage your SIPP while living abroad

It all depends on your provider, but you may be able to use an online portal to manage the investments in your SIPP.

To withdraw funds, you may find that the provider will only permit payments to a UK bank account in GBP. This could prove to be difficult as many high street banks in the UK require proof of address to maintain your bank account.

This is where a multi-currency solution, such as the Wise account, could come in handy. It’s not a bank account but offers some similar features, and your money is safeguarded. And more crucially, Wise enables you to get local account details in the UK without having a UK address - perfect for UK expats living abroad.

With Wise, you can manage 40+ currencies all from one account and convert between them when you need to. You can send money worldwide to 140+ countries, and even spend on a linked Wise card in 160+ countries worldwide.

✅ Sign up with Wise for free

Sources used:

Sources last checked 03-Nov-2025