Tax on AOW Abroad for Amsterdammers

AOW benefits remain taxable worldwide in the Netherlands, also for residents of Amsterdam, unless your country of residence has a tax treaty with the Netherlands. In EU countries such as many popular destinations for Amsterdam retirees, a withholding tax of 25% often applies, which is creditable in your local tax return. For non-EU countries, you must declare the AOW as foreign income with the tax authority of your place of residence. The Netherlands levies a pension tax of 2% via the SVB, supplemented by box 1 levy on your total income. For voluntary AOW insurance, you can deduct premiums in your Amsterdam or Dutch tax return. Avoid double taxation thanks to OECD model treaties; check the specific treaty for your country. Always keep your SVB annual statements for a correct declaration. For Amsterdammers with a low AOW, holiday allowance and the individual supplement are fully tax-free, providing extra financial room in the expensive Randstad. Partners can opt for a joint return via the Tax Authorities. Upon emigration from Amsterdam: the AOW tax stops after deregistration from the Personal Records Database (BRP) with the municipality of Amsterdam, but immediately inquire about the rules in your new country of residence. Local tip for Amsterdammers: many expats from the Jordaan or De Pijp move to Spain or Portugal; check double levy via the treaty. Advice: call Tax Authorities Abroad at +31 55 538 53 85 or visit the office in Amsterdam Zuidoost for personal consultation. Correct declaration prevents additional assessments and fines up to 300%. Keep address changes with the municipality of Amsterdam up-to-date for a smooth settlement.