AOW, pension and tax in Albania: Albania may tax, but whether it does is still uncertain, and without a social security treaty less AOW for those moving alone

If you live in Albania, the 2004 tax treaty gives your AOW, your occupational pension and your annuity to Albania. An ABP pension from government service is still taxed by the Netherlands. Whether Albania actually taxes a foreign pension is not certain at the moment. And because there is no social security treaty, a single person receives the AOW rate for married people.

Three things to know up front:

• A single person receives about 30 percent less AOW. For a couple nothing changes.
• If Albania does not tax your pension, or taxes it lightly, and you receive more than € 20,000 a year in total, the Netherlands may tax your pension and annuity after all.
• The Anw, the Supplementary Benefits Act, the AIO supplement, child benefit and the WW do not move with you. You get no tax credit.

Income	Netherlands	Albania
AOW, Anw	exempt (article 18(1)); according to the Belastingdienst also above € 20,000	may tax; whether it does is uncertain
Occupational pension, annuity	exempt, unless the fallback rule applies (article 18(2))	may tax; whether it does is uncertain
ABP pension from government service	taxed (article 19(2))	exempt, unless you are Albanian
Commutation before the start date	taxed (article 18(3))
Dividends from the Netherlands	at most 15 % (article 10(2))	8 %, with credit
Gain on a substantial shareholding	taxed, up to ten years after leaving (article 13(6))
Pay for work in Albania		0, 13 or 23 %

How much AOW will you receive?

The AOW you have built up moves with you to Albania. But the Netherlands and Albania have no social security treaty: Albania is not on the SVB's list, and the Netherlands is not on the Albanian list. Article 9a of the AOW Act then applies: people living outside the Netherlands receive the rate for married people. A single person receives a net 50 instead of 70 percent of the net minimum wage: about 30 percent less. A couple keeps its amount. There is no partner supplement outside the Netherlands.

Not moving with you:

• The Anw. If the surviving dependant lives in Albania on the day of death, there is no survivor's benefit. A current benefit stops when you leave.
• The Supplementary Benefits Act and the AIO supplement. You only receive those if you live in the Netherlands.
• Child benefit and the WW. These stop when your child or you live outside the Netherlands.

Which country taxes what?

The treaty was signed in Tirana on 22 July 2004 and has applied since 1 January 2006. Article 18(1) gives private pensions, annuities and social security benefits such as the AOW to the country of residence: Albania. An ABP pension from government service is taxed by the Netherlands (article 19(2)). If you commute a pension or annuity before it starts, the Netherlands may tax that (article 18(3)).

Then there is the fallback rule of article 18(2). The Netherlands may tax a pension or annuity after all if all three apply at the same time:

• the build-up enjoyed tax relief in the Netherlands, as with any ordinary occupational pension;
• Albania does not tax it at the normal rate, or on less than 90 percent of the amount;
• you receive more than € 20,000 gross a year in total in pensions, annuities and benefits.

According to the Belastingdienst's overview this rule does not apply to the AOW and the Anw: those stay with Albania. See also where is your pension taxed.

Does Albania tax your pension?

That is the open question. Albania taxes a resident on worldwide income. The Albanian income tax law (article 11(a)) exempts income from compulsory social insurance, without saying "Albanian". But the tax authority's official guidance mentions only benefits from the Albanian funds. In April 2026, according to news reports, the government approved a bill exempting foreign pensions; as of 26 October 2026 it had not appeared in the Albanian official gazette.

File a return in Albania before 31 March of the following year. The law requires you to declare all your income, including what is exempt (article 61). Have an Albanian tax adviser confirm how your AOW and pension are treated. If your pension is not taxed there and your total is above € 20,000, expect Dutch tax on your pension.