Pensions and taxes

The new double taxation agreement between the Netherlands and Germany came into force on 1 January 2016. It stipulates on which income taxes have to be paid in which country. The agreement states that the total taxes to be paid are due in Germany if the German pensions (private and statutory pensions added together) are higher than € 15,000. If the pensions are lower, tax is paid on them in the Netherlands. This can lead to a change in your net income. An exception are civil servants’ pensions, which are always subject to German taxes.

If you are resident in the Netherlands, you must declare all your worldwide income in your tax return. Your worldwide income also includes your non-Dutch income.Do you receive a pension, annuity or social security benefit from Germany? Then you have to pay tax on it in the Netherlands.

The following exceptions apply to the rule that you pay tax in the Netherlands:

  • You receive a civil servant’s pension (if you are a German citizen)
  • You receive more than € 15,000 from pensions, life annuities and benefits from Germany (civil servant pensions not included)
  • You receive a settlement for a pension or life annuity

If your pension is higher than € 15,000 gross per year, you are subject to German taxation.The Neubrandenburg tax office (Pension recipients abroad – [Rentenempfänger im Ausland] RiA) is the only tax office in Germany that is centrally responsible for all those who live abroad and only receive pensions from Germany. In the case of other income, another tax office may be responsible.

Under Downloads you will find the forms relating to a tax return for Neubrandenburg.