AOW and pension in Finland: the treaty with the 20% rule

For pensioners Finland is a fiscal odd one out in the EU — not because of what Finland does, but because of what the old treaty lets the Netherlands do. Whoever wants to know their net monthly income before the removal van comes reads this article and then plans one conversation with a tax adviser.

The AOW: along to Finland, taxed in the Netherlands

The AOW (the Dutch state pension) moves without problems: Finland is EU, so you keep the full rate — also as a single person — and the SVB simply keeps paying into your account. Fiscally the treaty is unambiguous: payments from the Dutch social-security system are taxable exclusively in the Netherlands. Finland doesn't look at them. Accrual stops on the day of the move; whoever still has years to go to the AOW age and isn't going to work in Finland can voluntarily continue the insurance with the SVB within a year of leaving.

The occupational pension: two countries with a hand on it

Newer Dutch treaties usually allocate pension to one country, sometimes with a threshold amount. The treaty with Finland — signed in 1995, and no successor is being negotiated — does it differently. Finland may tax as country of residence your private pension and annuity. But the Netherlands additionally keeps a source-state tax of at most 20 per cent on periodic payments — without threshold, for every pension that comes from Dutch employment. A full exemption from Dutch wage tax, such as emigrants to many other countries apply for, therefore doesn't exist for Finland.

In the end you don't pay twice: the treaty credits the taxes. But how that works out net for your pension mix — which part the Netherlands withholds, what Finland adds, what you claim back — differs per situation, and on surrender the 20% cap even lapses entirely. This is the corridor where that one conversation with a tax adviser before departure earns its money back fastest.

Work and assets: the rest of the treaty

For whoever is (also) going to work there, the treaty is classic: salary from employment exercised in Finland is taxed by Finland (article 15), and self-employed work follows the state of residence unless you keep a fixed base in the other country (article 14). For assets that stay behind in the Netherlands: a rented-out house remains fully taxed in the Netherlands (article 6), on dividends the Netherlands as source state may withhold 15% (article 10), and interest is exclusively for your state of residence — on Dutch savings interest only Finland taxes (article 11).

The healthcare side: the CAK and the factor of 0.8148

Whoever moves to Finland with a statutory pension and doesn't work there becomes a treaty beneficiary: healthcare in the Finnish public system, at the expense of the Netherlands, against a contribution to the CAK. That contribution is multiplied by the country-of-residence factor, and for Finland in 2026 that stands at 0.8148 — you pay a good 81 per cent of the Dutch contribution base, and the healthcare allowance can continue pro rata. You register the CAK's S1 form in Finland with Kela. One deadline to know: for whoever leaves on early retirement, this route closes to new registrations on 1 November 2026 — after that only AOW and disability benefits still qualify.

The paper finish

The protective assessment on your pension and annuity accrual is a formality within the EU: automatic deferral, no securities, and after ten years remission — but you apply for that yourself, it doesn't come by itself. Surrendering in the meantime makes the assessment immediately collectable, on top of the lapsed 20% cap. And for the year of emigration itself you file the M return, nowadays simply online. Whoever has these three things — treaty, CAK, protective assessment — in a row before departure has the financial side of Finland complete.

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.