AOW, pension and tax in Bermuda: untaxed AOW, but no social security agreement
The Netherlands and Bermuda have had a tax treaty since 2010. As a result only Bermuda may tax your AOW, and Bermuda levies no income tax. There is no social security agreement: a single person gets the AOW for married people, about 30 percent less. Pension and annuity go to Bermuda too. Above 10,000 euros gross a year, and only if the premiums were deductible, the Netherlands may tax; whether that covers the whole amount, check. The Netherlands always taxes an ABP pension.
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If you live in Bermuda, only Bermuda may tax your AOW, and Bermuda levies no income tax. So your AOW is untaxed. That is arranged by the tax treaty that the Netherlands and Bermuda concluded in 2009, which has applied since 1 February 2010. Your pension and annuity go to Bermuda too. Above €10,000 gross a year, and only if the premiums were deductible, the Netherlands may tax. The Netherlands always taxes an ABP pension from government service.
Three things to know in advance:
- There is no social security agreement. A single person therefore gets the AOW for married people: about 30 percent less.
- You no longer get a tax credit. That only matters if the Netherlands still taxes something, such as an ABP pension.
- The Anw, the Supplementary Benefits Act, the AIO supplement, child benefit and the WW do not go with you.
| Income | Netherlands | Bermuda |
|---|---|---|
| AOW, Anw | exempt (article 8(1)); a single person gets 50 instead of 70% of the net minimum wage | may tax, but levies no income tax |
| Company pension, annuity | exempt; above €10,000 gross a year, and only if the premiums were deductible, the Netherlands may tax (article 8(2)); whether that covers the whole amount, check | no income tax |
| ABP pension from government service | taxed (article 9(2)) | exempt |
| Buying out a pension that has not started yet | taxed (article 8(3)) | |
| Salary for work in Bermuda | payroll tax, 0.25 to 12.5% |
How much AOW do you get?
Your accrued AOW goes with you to Bermuda. But Bermuda is not among the 36 countries outside the EU, the EEA and Switzerland with which the Netherlands has a social security agreement. The SVB does list the United Kingdom, the Channel Islands and the Isle of Man, but not Bermuda.
Without an agreement, article 9a of the AOW applies: anyone living outside the Netherlands gets the amount for married people. For a couple nothing changes. A single person gets 50 instead of 70 percent of the net minimum wage: about 30 percent less. There is no supplement for a younger partner outside the Netherlands either (article 8a).
The SVB pays your AOW in Bermuda in euros, via Citibank, for at most €0.48 per payment. Sometimes the SVB asks for a life certificate; you then receive a letter.
Which country taxes what?
The tax treaty only applies to individuals, and covers income tax. It divides your income like this:
- AOW and Anw (article 8(1)): Bermuda only. The Belastingdienst lists them under Bermuda in its overview without exception.
- Company pension and annuity: also Bermuda, unless you could deduct the contributions in the Netherlands, Bermuda does not tax it in the normal way, and the total exceeds €10,000 gross a year (article 8(2)). Then the Netherlands may tax. Whether that covers the whole amount or only the part above €10,000 is not in any explanation we found. Ask the BelastingTelefoon Buitenland.
- ABP pension from government service (article 9(2)): the Netherlands only.
- Buying out a pension or annuity that has not started yet (article 8(3)): the Netherlands.
Without an exemption the SVB withholds wage tax on your AOW. So apply for the exemption with the SVB. If you want your pension fund to stop withholding wage tax, apply to the Belastingdienst for an exemption statement. See also where your pension is taxed and receiving a pension abroad.
Bermuda levies no income tax, but life there is expensive. Health insurance for a newcomer aged 65 or over costs up to $1,528.48 a month without subsidy (about €1,366). Living on your own income is only possible from $75,000 a year. See health care in Bermuda and the residence routes.
Do you get a tax credit?
No. For the Belastingdienst, Bermuda falls under "other countries". You keep the entrepreneur's deduction and the tax-free allowance in box 3, but no tax credit. If the Netherlands still taxes part of your income, such as an ABP pension or a house in the Netherlands, you pay that tax without a credit.
Are you leaving before your AOW age?
Anyone who goes to live in Bermuda is usually no longer insured for the AOW. Each year without insurance means 2% less AOW later. You apply for voluntary insurance within one year after you stop being insured. You are then no longer insured for the Anw either. If you die, your partner gets no survivor's benefit.
If you work in Bermuda, you pay a contribution to the Bermudian pension, $39.25 a week. You do not get it back when you leave. At 65 you get a pension if you paid at least 484 weekly contributions, and otherwise the contributions you paid in one sum. See working in Bermuda.
What else does the Netherlands keep hold of?
An annuity, pension entitlement or substantial interest travels with you under a protective assessment: a tax assessment that stays in place, but that you do not pay straight away. Bermuda is outside the EU, so the deferral is not automatic. You apply for it in writing, and often you provide security, such as a bank guarantee. If your pension is with a Dutch pension fund or a Dutch insurer, that security is not needed.
The Netherlands also counts when it comes to inheritance. If you die within ten years of leaving, or make a gift in that period, you still count as a resident under article 3 of the Inheritance Tax Act. Bermuda also levies estate duty on property in Bermuda above $100,000, rising to 21%. What goes to your spouse is exempt there. There is no treaty on inheritance tax. See inheritance tax after emigration.
In Vertrekklaar this is phase 1 of 5 of the journey, step 1.2: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Bermuda or go straight to step 1.2 in the open plan.
What this means for your numbers →
What this rests on
The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.
- Tax treaty Netherlands–Bermuda for individuals (London, 8 June 2009), articles 2, 4, 8 and 9 — wetten.overheid.nl
- Belastingdienst — Verdragsstaten IB niet-ingezetenen, January 2026, Bermuda on p. 21 — download.belastingdienst.nl
- Answers to parliamentary questions 2024Z02891 — the 36 treaty countries for exporting the AOW, without Bermuda — open.overheid.nl
- SVB — the AOW treaty countries — svb.nl
- General Old Age Pensions Act (AOW) — article 9a, the married rate outside the Netherlands, and article 8a, no supplement — wetten.overheid.nl
- SVB — what is deducted from your AOW if you live outside the Netherlands — svb.nl
- SVB — payment of your AOW outside the Netherlands, in euros — svb.nl
- Belastingdienst — applying for an exemption from wage tax on your pension — belastingdienst.nl
- Belastingdienst — deductions and tax credits if you live in another country — belastingdienst.nl
- Office of the Tax Commissioner — no personal income tax in Bermuda — gov.bm
- SVB — 2% less AOW for each uninsured year, and voluntary insurance within one year — svb.nl
- Belastingdienst — the protective assessment and deferral outside the EU (2026 tax return notes) — belastingdienst.nl
- Inheritance Tax Act 1956, article 3 — for ten years after leaving, a Dutch national still counts as resident — wetten.overheid.nl
- Stamp Duties Act 1976 — Bermudian estate duty on property in Bermuda — bermudalaws.bm
- Surviving Dependants Act (Anw), articles 32a and 32b — the Anw outside the Netherlands and the voluntary insurance — wetten.overheid.nl
- Supplementary Benefits Act, article 4a — no supplement for whoever lives outside the Netherlands — wetten.overheid.nl
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