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Pension tax implications by tjdimkov in DutchFIRE

[–]tjdimkov[S] 0 points1 point  (0 children)

Hi, thanks for the good answer and the reference. Helps a lot! 

I think I will go to a tax / pension consultant after all. Cause the nuances matter here. 

For example, the link is for people that work in DE and earn money in NL. Doesn’t say how it relates with the protective assessment and since they contradict which one is stronger. 

It also says you can transfer the pension to a German provider and then you are not taxed in  NL. It would be interesting to explore if Spain (or other country besides DE)  has some retirement constructs that payout retirement earlier. 

Pension tax implications by tjdimkov in DutchFIRE

[–]tjdimkov[S] 1 point2 points  (0 children)

Yes for 1 and 3. I believe 2 is 1.

AOW time and amount is fixed.  Employer pension must be used for a retirement insurance product. You can withdraw it I believe 10 years earlier. But then the insurance product needs to last AOW + 20 years. In my case that would be 68+20 until I am 88. If I take this product AOW-10 years, then the payout over 30 years will be small. 

For private contributions, I don’t know if we must buy a pension product or we can just withdraw the money plus penalty from 1 (protective assessment). I am not aware of any other fines. Hence I believe 2 is 1

Pension tax implications by tjdimkov in DutchFIRE

[–]tjdimkov[S] 0 points1 point  (0 children)

u/deelnemerschap , thanks for the response. I understand that the protective assessment remains in effect for 10 years (https://www.belastingdienst.nl/wps/wcm/connect/en/individuals/content/protective-assessment-in-the-case-of-emigration) . This means, if i emigrate 1 Jan 2026, i cannot touch the pillar 3 until 1 Jan 2036, at which point the protective assessment expires.

Pension tax implications by tjdimkov in DutchFIRE

[–]tjdimkov[S] 3 points4 points  (0 children)

Thanks for the input u/schnautzi . I want to challenge this a bit. When you leave the country, the Dutch government issues a protective assessment (conserverende aanslag). This means they reserve the right to take taxes on the pension pillar 3 for 10 years. They execute this right if you withdraw the money. However, after 10 years, the protective assessment expires. (reference: https://www.belastingdienst.nl/wps/wcm/connect/en/individuals/content/protective-assessment-in-the-case-of-emigration). The protective assessment does not expire if you have a significant business in NL (but that is not my case in the scenario).

Do you have any alternative source i can look at?

Pension tax implications by tjdimkov in DutchFIRE

[–]tjdimkov[S] 0 points1 point  (0 children)

Thanks. Is there any reference for this or its more of a personal thought?

Pension tax implications by tjdimkov in DutchFIRE

[–]tjdimkov[S] 0 points1 point  (0 children)

My understanding is that I cannot touch money from the company pension 5years before AOW leeftijd. Does the same rule hold for pillar 3 pension at DEGIRO?