AOW, pension and tax in Scotland: the full AOW, and the UK taxes it with the Scottish bands
For the AOW state pension the United Kingdom is a treaty country: you get the same amount as in the Netherlands, in pounds. Under the 2008 tax treaty the UK taxes your AOW and your pension, and in Scotland that happens with the Scottish bands of 19 to 48 percent. Newcomers can exempt foreign income for four years. Healthcare runs through the CAK with an S1.
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If you live in Scotland, you get your full AOW state pension, in pounds into your UK account. For the AOW the United Kingdom is a treaty country. The SVB says it plainly: your AOW does not change. You pay tax in the UK, and because you live in Scotland, at the Scottish rates.
Three things to know beforehand:
- You get as much AOW as if the UK were still in the EU. As a single person you keep the AOW for single people.
- The tax treaty lets the UK tax your AOW, your occupational pension and also an ABP civil service pension. The Netherlands may only tax in an exception above € 25,000 a year.
- Your healthcare runs through the CAK with an S1. The contribution for the UK is below the Dutch premium: the residence factor is 0.8498 in 2026.
An AOW or pension does not give you a visa. Living in Scotland is only possible through work, a partner, talent or your own business. See the visa routes to Scotland.
| Income | Who taxes | Treaty article |
|---|---|---|
| AOW and Anw | the UK | 17(1) |
| Occupational pension and annuity | the UK; the Netherlands only in the exception above € 25,000 | 17(1) and (2) |
| ABP pension (government) | the UK; the same exception | 17(1) |
| Lump sum before the start date | the Netherlands may tax | 17(3) |
| WIA, WAO, WAZ, Wajong | the UK | 20 |
| Interest on Dutch savings | the UK | 11 |
| Dividends from the Netherlands | the Netherlands at most 10 percent | 10(2) |
| Rent from a house in the Netherlands | the Netherlands may tax | 6 |
How much AOW do you get?
Your accrued AOW goes with you in full. The SVB calculates it as "just as much as if the UK were still an EU country". The married-person rate, which gives a single person in a country without a treaty a lower AOW, therefore does not apply here. The SVB pays the AOW in pounds, around the start or middle of the month. Because of the exchange rate, the amount differs slightly every month.
If you leave before your AOW age, your accrual stops. Every year without insurance later means 2 percent less AOW. You can insure yourself voluntarily, but you must register within one year after your insurance ended. In 2026 the premium is 17.9 percent of your income, with a minimum of € 569 and a maximum of € 5,693 a year.
Which country taxes your pension?
The tax treaty between the Netherlands and the UK was signed in London on 26 September 2008 and has applied since 1 January 2011. Article 17(1) says: pensions, annuities and social security pensions such as the AOW are taxable only in the country where you live. For you, that is the UK.
The Netherlands may still tax if two things apply together, and then only above € 25,000 gross a year:
- Your pension was built up in the Netherlands with tax relief.
- The UK does not tax it at the general rate, or taxes less than 90 percent of the amount.
If you use the FIG regime below, that may be the case. The Belastingdienst points this out itself in its overview. A lump sum paid before the start date may always be taxed by the Netherlands. According to the same overview, an ABP pension also falls under article 17. See where your pension is taxed.
Because the UK taxes, you can have the Dutch deduction stopped. The SVB grants an exemption from payroll tax if you have the AOW paid into your UK account. Ask your pension fund for the same.
How does Scottish income tax work?
If you live in Scotland, you pay Scottish Income Tax on your wages, your pension and most other income. HMRC, the UK tax authority, collects it; the money goes to the Scottish Government. On savings interest and dividends you pay the UK rates, as in the rest of the UK.
| Taxable income 2026 to 2027 | Scottish rate |
|---|---|
| up to £12,570 (Personal Allowance) | 0 % |
| £12,571 to £16,537 | 19 % |
| £16,538 to £29,526 | 20 % |
| £29,527 to £43,662 | 21 % |
| £43,663 to £75,000 | 42 % |
| £75,001 to £125,140 | 45 % |
| over £125,140 | 48 % |
The Personal Allowance is the tax-free amount. Above £100,000 of income it goes down by £1 for every £2, and from £125,140 it is gone. The tax year runs from 6 April to 5 April.
You can recognise the Scottish tax by your tax code, the code your employer or pension payer uses to deduct tax: it starts with an S. With the standard allowance it is S1257L. Give HMRC your address in Scotland. If you do not, you may pay at the wrong rate. You are a Scottish taxpayer if, in a tax year, you live in Scotland longer than anywhere else in the UK.
What is the FIG regime?
Anyone who was not UK resident for ten tax years can exempt foreign income in their first four years as a UK tax resident. That is the 4-year foreign income and gains regime. HMRC includes foreign pensions and social security benefits. You claim it each year in your tax return, Self Assessment. The price: you lose your tax-free allowance that year. Everything about it is in the FIG regime in England; for Scotland it works the same. Work it out with a tax adviser, because a claim can let the Netherlands tax again.
How do you arrange your healthcare?
The United Kingdom is on the CAK's list of treaty countries, with England, Wales, Scotland and Northern Ireland named. With an AOW or a Dutch pension you register with the CAK and get an S1. You pay a treaty contribution, which for the UK in 2026 is calculated with the residence factor 0.8498.
If you leave on an early pension, this route stays open for the UK. The CAK names the United Kingdom as a country where an early pension or bridging payment still gives you the right. See CAK and early retirement.
If you paid the healthcare surcharge with your visa, you can get all or part of it back with an S1 registered with the NHS. See healthcare in Scotland.
What else does the Netherlands keep hold of?
On your accrued pension you get a protective assessment when you leave: an assessment that stays in place, but that you do not pay as long as you follow the rules. It usually lasts ten years. If you hold a substantial interest (at least 20 percent of a company), the treaty lets the Netherlands tax the gain on a sale up to ten years after you leave, as long as that assessment is open.
The Netherlands also counts for inheritances. If you die within ten years of leaving, or make a gift in that time, under article 3 of the Successiewet you still count as a resident. 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 Scotland 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.
- SVB — Brexit FAQ, the AOW does not change — svb.nl
- SVB — payment of the AOW outside the Netherlands, in pounds for Great Britain — svb.nl
- SVB — voluntary insurance when you leave, register within a year, 2 percent a year — svb.nl
- SVB — voluntary insurance premium outside the Netherlands (2026) — svb.nl
- Tax treaty Netherlands–United Kingdom (2008), articles 10, 11, 13, 17, 18 and 20 — wetten.overheid.nl
- Belastingdienst — Treaty countries for non-residents, January 2026, United Kingdom on p. 106 — download.belastingdienst.nl
- GOV.UK — Income Tax in Scotland, the 2026 to 2027 bands — gov.uk
- GOV.UK — Income Tax in Scotland, who pays and the S code — gov.uk
- GOV.UK — Income Tax in Scotland, if you move to Scotland — gov.uk
- GOV.UK — Income Tax rates and Personal Allowances, the £12,570 and the taper above £100,000 — gov.uk
- HMRC — the 4-year foreign income and gains regime for newcomers — gov.uk
- HMRC — RFIG45100, foreign pensions and social security also under the FIG regime — gov.uk
- CAK — the treaty countries, with the United Kingdom including Scotland — hetcak.nl
- CAK — early pension FAQ, the UK stays open — hetcak.nl
- Staatscourant 2025, 38064 — the residence factors for 2026 — zoek.officielebekendmakingen.nl
- GOV.UK — Immigration Health Surcharge refund with an S1 — gov.uk
- Belastingdienst — the protective assessment on emigration — belastingdienst.nl
- Successiewet 1956, article 3 — for ten years after leaving, a Dutch national still counts as a resident — wetten.overheid.nl
- GOV.UK — National Insurance rates and categories — gov.uk
- Belastingdienst — living abroad with Dutch income — belastingdienst.nl
- HMRC — HS266, the FIG regime in the 2026 return — gov.uk
- Belastingdienst — what Brexit means for your protective assessment — belastingdienst.nl
- GOV.UK — Inheritance Tax if you're a long-term UK resident — gov.uk
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