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    German pension – where do I pay tax?

    Do you live in the Netherlands? Then you usually pay tax in the Netherlands on your pension from Germany (deutsche Rente).

    On this page:

    • What is a pension from Germany?

      A pension from Germany is a pension that you have accrued in Germany. You will usually receive this pension from Germany, but you could receive it through a Dutch insurer if you have transferred your pension from Germany to that insurer. For that reason, you do not necessarily receive this pension literally from Germany.

      Which pension do you have?

      In Germany, you can build up 4 types of pension. The table shows which ones these are.

      Table: Types of German pension
      German pension Explanation
      Statutory pension

      A pension you built up when you were compulsorily insured under the German social insurance system (Rentenversicherung) through your work. For example:

      • Old-age pension (Altersrente – comparable to the Dutch old-age pension)
      • Surviving relatives’ pension (comparable to the Dutch Anw)
      • Payment from the German social insurance fund (Deutsche Rentenversicherung)
      • Payment from the farmers’ pension fund (Landwirtschaftliche Alterskasse)
      • Payment from the pension fund for liberal professions (berufsständische Versorgungseinrichtung)
      State pension A pension you built up when you worked for the German government.
      Company pension A pension you built up when you worked for a German company.
      Annuity payment A payment from an annuity insurance policy.

    • You usually pay tax in the Netherlands

      Do you live in the Netherlands? Then you usually pay tax in the Netherlands on your German pension. In your Dutch tax return, you must enter your German pension or annuity under ‘Pensioen en andere uitkeringen’ (Pension and other benefits).

      In Germany, you do not need to file a tax return if you submit a request with the German Tax Administration. You can do so with a form Verklaring belastingaangifte Duits pensioen (Statement tax return German pension,only available in Dutch).

    • You sometimes pay tax in Germany

      You pay tax in Germany if the total amount of the following pensions (pensioenen) from Germany in 1 year is more than €15,000:

      • statutory pension
      • company pension
      • annuity payment

      Do you receive a German government pension or a social security benefit, for example Krankengeld, Mutterschaftsgeld or Elterngeld? Then these do not count towards the €15,000 limit.

      Other situations where you pay tax in Germany

      You also pay tax in Germany in the following situations:

      • You receive a German government pension and you do not have Dutch nationality.
        Do you receive a VBL pension (VBL-rente)? This is not a government pension. It is a company pension from the Versorgungsanstalt des Bundes und der Länder (VBL) for former employees of the German government.
      • You receive a social security benefit from Germany.
        For example: Krankengeld, Mutterschaftsgeld or Elterngeld.
      • You receive a lump sum payment from a pension or annuity in Germany.

      Do you have any questions? Please call the Cross-Border Employment and Enterprise Team.

      Statutory pension is partly tax-free in Germany

      Do you pay tax in Germany on your statutory pension? Then the first year in which you receive your pension decides the percentage of your pension that is tax-free in Germany. The German tax authority uses this percentage to calculate your tax-free amount in the first full year of your pension. In the table you can see, for each first pension year, what percentage of your statutory pension is tax-free in Germany.

      Table: tax-free share of statutory pension
      1st pension year Tax-free portion
      2016 28%
      2017 26%
      2018 24%
      2019 22%
      2020 20%
      2021 19%

      From 2021 onwards, the German tax authorities will reduce the tax-free share by 1% each year.

      Your company pension can also be partly tax-free in Germany

      Do you pay tax in Germany on your company pension, and do you receive this pension alongside your statutory pension? Then your company pension is also partly tax-free.

      The amount that is tax-free depends on:

      • the type of supplementary pension
      • the year the company pension started
      • your age when you first received the pension

      You can read more on the website of the Finanzamt Neubrandenburg (only available in German).

    • You have not received an annual statement

      Do you have a Versichertenrente, for example an (early) old-age pension or a disability benefit from Germany? And have you not received an annual statement from your German pension fund? Then you can request an annual statement from the Deutsche Rentenversicherung (DRV, only available in German) .

    • Social insurance contributions and Zvw contribution

      If you live in the Netherlands, you pay social insurance contributions ( AOW, Anw and Wlz) and the Health Insurance Act contribution (Zvw) on your pension from Germany.

      You are compulsorily insured in the Netherlands in the following situations:

      • You only have a pension from Germany.
      • You have Dutch income in addition to your German pension, for example AOW or salary.

      Social insurance contributions are a percentage of your income. You can check how much you pay.

      The income-related Zvw contribution (Zvw) is a percentage of your income. You can also check how much you pay.

      No or lower social insurance contributions or Zvw contribution

      You pay no or lower social insurance contributions or Health Insurance Act contribution Zvw in the following situations:

      • You already received a German pension before 1 May 2010 and still pay your social contributions in Germany. In that case you do not pay social insurance contributions or Zvw contribution if you worked across the border. You do pay contributions if you receive Dutch AOW in addition to your German pension.
      • You have an exemption from the compulsory insurance (only available in Dutch) for AOW and Anw. In that case you only pay Wlz contributions and the Zvw contribution.
      • You have reached the AOW age (only available in Dutch). In that case you no longer pay AOW contributions. You only pay Anw and Wlz contributions, and the Zvw contribution.
      • You only have a German pension and have a statutory health insurance in Germany. In that case you do not have to pay Wlz contributions or the Zvw contribution. You can request an exemption (only available in Dutch) from the SVB.

      Apply for an allowance (tegemoetkoming) in Germany

      Do you live in the Netherlands and have you paid Wlz contributions and the Zvw contributions? Then you can apply for an allowance in Germany if you meet all of the following conditions:

      • You have filed a tax return for the year for which you are requesting the allowance.
      • You have declared your German pension in your tax return.
      • You have received a final assessment for income tax/social insurance contributions.
      • You have received an assessment for the Zvw contribution.

      If you meet these conditions, download the Application form Zulage from the Grensinfopunt website (only available in Dutch and German). Fill in the form and send it to the Deutsche Rentenversicherung (DRV).

      The DRV asks us to check whether you meet all conditions. After we have sent the information, you will automatically receive a message from the DRV. They calculate your allowance and pay it to you. If you have questions, please contact the DRV (only available in German).