How Much Does It Cost to Switch From a QROPS?

QROPS transfer costs and fees are smaller than the cost of staying put for most returning expats. Here's the honest breakdown.

QROPS transfer costs and fees are one of the most common sticking points for returning expats. The honest answer is that the cost of switching is almost always smaller than the cost of staying put. This guide breaks down what you'll actually pay — and what you'll save.

The fees on your existing QROPS (the ones you're already paying)

Most UAE-sold QROPS carry several layers of cost:

Scheme/platform fee — Typically 0.5–1.0% per year
Bond wrapper charge — If your QROPS sits inside an insurance bond, often another 1–2% per year for the first 5–10 years
Underlying fund charges — 0.5–1.5% per year
Adviser trail commission — 0.5–1% per year, often paid to someone who left the country years ago
Dealing fees — Per-transaction charges

Add it up and many expats are paying 2.5–4% per year all-in. On a £400,000 pot, that's £10,000–£16,000 per year — every year.

The cost of switching to a UK SIPP

The transaction itself usually involves:

Exit fees on the existing QROPS — Variable; sometimes zero, sometimes 1–5% depending on the bond surrender schedule
Transfer paperwork and execution fee — Either an advice fee (full advice) or a flat execution-only fee
Initial setup on the new SIPP — Often nominal or zero on competitive platforms
Re-investment dealing costs — Usually small on a modern platform

A typical net cost for a clean switch falls in the range of 1–3% of the pot one-off, with no ongoing advice charge if you go execution-only.

The ongoing fees on a competitive UK SIPP

A modern, competitive UK SIPP typically costs:

Platform fee — 0.15–0.45% per year, often capped at a maximum
Fund charges — 0.05–0.30% per year for low-cost trackers; more for active funds
No bond wrapper — That whole layer of cost simply doesn't exist
No adviser trail — Unless you choose ongoing advice

Total ongoing cost is often 0.4–0.7% per year — a fraction of the QROPS equivalent.

The breakeven

Most QROPS-to-SIPP switches we see pay for themselves within 18 months to 3 years purely through reduced ongoing fees. After that, every year is pure saving.

On a £500,000 pot, saving 1.5% per year in fees compounds to roughly £100,000 of extra value over a decade — money that would otherwise have gone to the platform, the bond provider and the absent adviser.

How to get an honest cost picture

Ask your QROPS provider for the total ongoing cost in pounds, not as a percentage. Many will provide percentages happily and pounds reluctantly. The pound figure is the one that matters.

We do this exercise for free as part of a consultation. You'll see your current cost, your projected cost in a UK SIPP, and the breakeven point in plain numbers.

Watch out for

Surrender penalties on insurance bonds — Some still in the early years of a 10-year schedule. We'll show you whether to wait or switch now.
In-specie vs cash transfer — Sometimes you can transfer holdings as-is to avoid being out of the market
Tax year timing — Sometimes worth waiting weeks for a clean tax year boundary
Currency conversion costs — If your QROPS is in USD, the FX leg matters

The cost of doing nothing

This is the cost most expats don't count. Five years of overpaying 2% on a £400,000 pot is £40,000+ — and that's before compounding. The real question isn't "what does it cost to switch?" — it's "what does it cost not to?"

Not sure where you stand?

Book a free 30-minute consultation with an IFA.ae adviser — no obligation, no jargon. We work specifically with British expats returning from the UAE, so you don't have to explain your QROPS, your dirham accounts or your offshore bond from scratch.

Book your free consultation →