Retiring in the Netherlands: a complete guide
Explore the process of retirement in the Netherlands as a US senior and find out about the tax implications, cost of living, and pros and cons.
Summary
The cost of living is 8.9% higher in the Netherlands than in the US.
Income tax rates range between 9.28% and 49%, depending on your income bracket.
The Netherlands is considered one of the best places to retire in the world.
Unbiased can help you find a financial advisor to create a plan for a comfortable retirement.
What are the pros and cons of retiring in the Netherlands?
Retiring in the Netherlands is something more than 4,000 US seniors have done since 2022, which isn’t surprising considering how highly the country ranks for quality of life.
The Netherlands is known for being a friendly, stable, and beautiful place to retire. But there are some drawbacks to consider, too.
Here are the main pros and cons of retiring in the Netherlands:
Pros of retiring in the Netherlands:
Relatively simple visa application process: The Netherlands is a very expat-friendly retirement destination. Once you have a residence permit, retiring is straightforward.
High English proficiency: The Dutch have the highest English proficiency for non-native English speakers in the world, making it very easy for English-speakers to assimilate into the culture.
Inclusive, welcoming culture: Dutch culture is very laid back and welcoming. There is also a healthy, diverse expat community, creating opportunities for connection.
Cons of retiring in the Netherlands:
High tax rate: Any income you earn as an expat, regardless of retirement status, is subject to tax, which can drain pension funds.
Housing shortage: Securing affordable accommodation in the Netherlands can be difficult due to a lack of available housing options.
High cost of living: The cost of living in the Netherlands is 8.9% higher than in the US, making retirement in the Netherlands a costly option.
What are the best places to retire in the Netherlands?
The Netherlands’ beautiful architecture, bike-centered commute system, and serene forests make the country an idyllic place to settle down.
But where are the best places to retire in the Netherlands? There are a few that are particularly suited to retirees:
Delft: Delft is a university town, but it has a diverse community and access to incredible transportation systems and world-class healthcare facilities.
Leiden: Leiden’s centuries-old architecture and cobblestone streets make it a charming and affordable place to live out your golden years.
Tilburg: Many foreign and local retirees are drawn to Tilburg for its relaxed social atmosphere and varied cultural attractions.
What age can you retire in the Netherlands?
The official Dutch state pension age is 66 years and four months.
It is projected to increase to 67 by the end of 2024, which is something to consider if you are considering emigrating to the Netherlands.
What is the average cost of retirement in the Netherlands?
You will need around €976 or $1,086 per month to retire comfortably in the Netherlands.
Full state pension in the Netherlands is €1,270, or approximately $1,420, but it can be difficult to qualify for this unless you are an EU citizen.
Do you pay taxes after retirement in the Netherlands?
All income in the Netherlands, including retirement income, is subject to taxation.
Income tax rates range between 9.28% and 49%, depending on your income bracket.
What programs are there for emigrating to the Netherlands?
If you want to retire in the Netherlands, you need to have worked or lived in the country for five years and then apply for a permanent residency permit.
This process needs to happen through the Immigration and Naturalisation Service (IND).
What visas do I need to retire in the Netherlands?
You need a permanent residency visa to retire in the Netherlands.
What are my healthcare options in the Netherlands?
The Netherlands has a universal healthcare system, but expat retirees are required to obtain private healthcare in addition to this.
Private healthcare costs between $100 to $120 per month for a basic plan.
Is it safe to retire in the Netherlands?
The Netherlands is a good place to retire because it has an exceptionally low crime rate, making it considerably safe.
However, busy city areas can attract petty crime, and retirees are encouraged to exercise caution.
What is the housing market in the Netherlands?
Currently, the Dutch housing market is poised for an exciting shift due to reduced mortgage rates, increased wage growth, and other favorable economic factors.
The average cost of property per square foot is now € 8,384, and the average costs of property are as follows:
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