What is deducted from your AOW pension if you live outside the Netherlands?

If you live outside the Netherlands and you receive your AOW pension there, tax and health insurance contributions may be deducted from your AOW pension. The exact amount deducted from your AOW pension will depend on your circumstances and the country where you live.

Read more about tax, health insurance contributions and healthcare services. And where to go for additional information.

Tax

The Netherlands has made agreements with many countries concerning tax payments. The agreements are laid down in a bilateral tax treaties to ensure that you do not pay tax on the same income in 2 countries. It depends on the tax treaty whether or not we deduct tax and/or national insurance contributions from your AOW pension. If we do not make these deductions from your AOW pension, you will have to pay tax on your AOW pension in the country where you live.

Tax treaties do not cover contributions for the national insurance schemes. If you are insured under 1 or more of the Dutch national insurance schemes, we will deduct contributions from your AOW pension. This also applies if you pay tax in the country where you live. 

Tax credit

If you are subject to deductions for Dutch tax and/or national insurance contributions, you can get a tax credit. The tax credit consists of 2 components, one for tax and the other for social insurance contributions.

If you receive an AOW pension, you can get the contributions component of the tax credit (but not the tax component). This means the amount you get will be higher.

You qualify for the contributions component if:

  • you are insured under 1 or more of the Dutch national insurance schemes
  • we deduct the Zvw health insurance contribution for non-residents from your AOW pension

If you want to get the contributions component of the tax credit for your AOW pension, please contact us.

The SVB cannot apply the tax component of the tax credit to your AOW pension, even if the bilateral tax treaty states that your AOW pension should be taxed in the Netherlands. You may be able to get the tax component from the Dutch Tax and Customs Administration (Belastingdienst), but only if you file a tax return in the Netherlands.

Zvw health insurance contribution for non-residents

The CAK decides whether you have to pay health care treaty contributions (‘verdragsbijdrage’). If so, we will deduct a ‘Zvw health insurance contribution for non-residents’ from your AOW pension.

The Zvw health insurance contribution for non-residents may consist of up to three components:

  1. a contribution under the Dutch Health Insurance Act (Zvw)
  2. a contribution under the Long-term Care Act (Wlz)
  3. a fixed contribution. The amount of this contribution differs per country, depending on the average cost of healthcare in the country where you live.

Healthcare services in the EU, EEA or Switzerland

If you live in a country that is a member of the European Union (EU) or the European Economic Area (EEA), or in Switzerland, you may be able to get your medical care in that country paid by the Netherlands.

You can find more information about your health insurance outside the Netherlands on the website ‘netherlandsworldwide.nl’.