AOW, pension and tax in Peru: no treaty, so the Netherlands taxes

If you live in Peru, the Netherlands keeps taxing your AOW, your pension and your annuity. Peru is not in the Dutch Tax Administration's overview of countries with which the Netherlands has a tax treaty, 2026 edition, nor in the list of NederlandWereldwijd. It writes: if there is no tax treaty with your country of residence, the Netherlands has the right to tax. Peru itself taxes your worldwide income once you are resident there, but exempts pensions from work.

Three things to know in advance:

• The Netherlands taxes under its own law, with no treaty limiting that. Peru does have its own credit for tax you paid abroad.
• You pay the Dutch tax without a tax credit. Only if you are still insured in the Netherlands for the national insurance schemes do you get the premium part.
• Peru is not among the countries with a social security treaty. As a single person you get the AOW for married people.

Income	Netherlands	Peru, if you are a tax resident there
AOW	taxed; a single person gets the married rate (50 instead of 70% of the net minimum wage)	have it checked whether the AOW falls under the exemption
Occupational pension, ABP	taxed, as wages for work in the Netherlands	under art. 18 not taxed as a pension from work
Annuity (lijfrente)	taxed if the premiums were deductible	the law mentions rentas vitalicias from work; have it checked whether your annuity falls under it
House in the Netherlands	Dutch income
Interest and dividends		taxed: worldwide income, rate 8 to 30%
Wages or rent in Peru		taxed

Why does the Netherlands keep taxing?

Because there is no treaty. Article 7.2 of the Income Tax Act sets out what you then declare in the Netherlands: wages for work you performed in the Netherlands, which is where your occupational pension falls; benefits whose premiums were deductible, such as your annuity; and benefits from a Dutch public body, such as the SVB. See also where your pension is taxed.

For "other countries" the Dutch Tax Administration only lists the entrepreneur's deduction and the tax-free allowance in box 3 as deductions. You get no tax credit; only if you are still insured in the Netherlands for the national insurance schemes, the premium part. Have the net amount calculated.

What does Peru do?

You become a tax resident, domiciliado, if you are in Peru for more than 183 days within any period of twelve months (article 7 of the Ley del Impuesto a la Renta). Your status is assessed on 1 January: a change during the year only counts from the following year (article 8). A resident pays tax on all his income, wherever it comes from (article 6).

For pensions there is an exemption. Article 18 lists as not taxed las rentas vitalicias y las pensiones que tengan su origen en el trabajo personal, tales como jubilación, montepío e invalidez. The law makes no distinction between Peruvian and foreign pensions. In the guidance on the 2004 return SUNAT wrote that a foreign retirement pension "would therefore be" exempt, but that you do declare it as exempt income.

Two things cannot be checked at SUNAT. Whether the AOW counts as a pension from work: you build it up by living in the Netherlands, not by working. And whether the 2004 position still applies. Have a Peruvian tax adviser confirm this before you count with a net amount.

What is taxed, such as interest and dividends from the Netherlands, SUNAT adds to your income from work. A progressive rate applies, from 8% up to 5 UIT to 30% above 45 UIT; in 2026 the UIT is S/ 5,500. Tax you paid abroad on such income may be credited under article 88, up to the amount your average Peruvian rate produces.