AOW and pension in Finland: the treaty with the 20% rule
The tax treaty with Finland dates from 1995 and calculates differently from the newer treaties: the AOW remains taxed exclusively in the Netherlands, but on your occupational pension the Netherlands may keep up to 20 per cent source tax — alongside the Finnish tax as country of residence. What that means for your net monthly income, and which registrations around your pension you have to arrange yourself.
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If you live in Finland, your AOW remains fully taxed in the Netherlands, and Finland does not look at it. Finland taxes your occupational pension as your country of residence, and the Netherlands may in addition keep up to 20 percent of the gross amount.
Three things to know up front:
- That is in the tax treaty the Netherlands and Finland concluded in Helsinki on 28 December 1995, which has applied since 20 December 1997.
- That limit for the Netherlands applies to periodic payments; for a one-off commutation the treaty does not mention it. Finland credits the Dutch tax, so you do not pay twice.
- Your net monthly income does depend on two countries at once. You work that out before the removal van arrives.
Who taxes what under the treaty?
The 1995 treaty assigns, per type of income, who may tax. For an emigrant with a Dutch pension and some assets it looks like this:
| Income | Who may tax | Article |
|---|---|---|
| AOW and other Dutch social security benefits | only the Netherlands | 18, paragraph 3 |
| Occupational pension from Dutch employment | Finland as country of residence; the Netherlands as well, up to 20 % of the gross amount on periodic payment | 18, paragraphs 1 and 2 |
| Annuity from the Netherlands | likewise, up to 20 % on periodic payment | 18 |
| Pension for government work, paid by the State or from funds it created | only the Netherlands, unless you are a Finnish national | 19, paragraph 2 |
| Wages for work in Finland | Finland | 15 |
| Rent from a home in the Netherlands | the Netherlands may tax | 6 |
| Dividend from a Dutch company | Finland; the Netherlands may withhold up to 15 % | 10 |
| Interest | only your country of residence, Finland | 11 |
Why does the 20 percent weigh so heavily?
Because it is not a cap on your total tax, but the share the Netherlands may keep. The treaty says it precisely: pensions for work done in the Netherlands, and annuities from the Netherlands, may also be taxed in the Netherlands, but on a payment of a periodic nature not above 20 percent of the gross amount. Finland taxes the same pension as country of residence and grants a reduction for what the Netherlands was allowed to levy.
The pitfall is in the word periodic. Whoever commutes their pension or annuity receives a one-off payment, and for that the treaty does not mention the 20 percent limit. Commuting also costs money in a second way; you read about that below under the protective assessment.
This is the corridor where one conversation with a tax adviser before leaving pays for itself fastest. How it works out net for your mix of pension, annuity and assets differs per situation.
What happens to my AOW?
The AOW you have built up comes along: the SVB also pays people who live outside the Netherlands. Fiscally the treaty is unambiguous: benefits from the Dutch social security system paid to a resident of Finland are taxable only in the Netherlands.
The build-up does stop. Whoever goes to live outside the Netherlands is usually no longer insured for the AOW and the Anw, the insurance for a survivor's benefit. For every year you are not insured you later get 2 percent less AOW.
Whoever still has years to go until AOW age can insure voluntarily with the SVB. You have one year for that, counted from the moment you are no longer insured. The same applies to the Anw: without that insurance a partner gets no survivor's benefit on death.
How does healthcare work with a Dutch pension?
Whoever moves to Finland with a statutory pension and does not work there arranges healthcare via the CAK. You get an S1 with which you register in Finland, and the CAK deducts a contribution from your pension.
That contribution is multiplied by the country-of-residence factor. For Finland in 2026 it is 0.8148: you pay just over 81 percent of what the contribution would be without that factor.
If you leave on early retirement, watch the date. As things stand, the CAK expects that from 1 November 2026 the route will only be open to new applicants with AOW, Anw, WAO, WIA or Wajong. Whoever leaves with an early retirement pension or a bridging benefit such as an RVU benefit then takes out health insurance themselves until AOW age. The CAK had not taken a final decision at the time of this review.
What do I wrap up in the Netherlands?
The Belastingdienst imposes a protective assessment on your accrued pension and annuity: an assessment with which the Netherlands records its tax claim when you leave. Within the EU that is mainly a formality. Whoever emigrates to an EU or EEA country automatically gets deferral of payment, without collection interest.
If you comply with the Dutch rules for ten years, you can then ask for remission. The Belastingdienst sends you a letter at the end of the deferral. If you commute your pension or annuity within those ten years, you do have to pay the assessment.
For the emigration year itself you file the M return. Whoever has the treaty, the CAK and the protective assessment lined up before leaving has the financial side of Finland complete. What Finnish tax comes on top if you also work there is in tax for newcomers in Finland.
In Vertrekklaar this is phase 2 of 5 of the journey: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Finland.
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–Finland 1995, articles 6 to 23 — wetten.overheid.nl
- SVB — AOW outside the Netherlands — svb.nl
- SVB — voluntary insurance for AOW and Anw, within one year — svb.nl
- CAK — moving with a Dutch pension — hetcak.nl
- CAK — emigrating on early retirement, the expected change from 1 November 2026 — hetcak.nl
- Staatscourant 2025, 38064 — the country-of-residence factors for 2026 — zoek.officielebekendmakingen.nl
- Belastingdienst — protective assessment on emigration — belastingdienst.nl
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