Freelance Pension Tax Advantage: Who Qualifies and What You Get
Learn how freelancers in the Netherlands can reduce their taxable income by making pension contributions through this tax advantage scheme.
This scheme allows self-employed individuals to make pension contributions that reduce the amount of income they are taxed on.
Who it's for
This is designed for freelancers who have "jaarruimte." This term refers to the unused pension space available to you based on your income from previous years.
What you get
You can make contributions toward your pension that are tax-deductible. This effectively lowers your taxable income, meaning you pay less in taxes while saving for your future.
What it costs you
To take advantage of this, you cannot simply set money aside in a standard savings account. You are required to open a specific type of account known as a "lijfrente" (annuity) account.
The catch to know
You cannot guess how much you are allowed to contribute. You must use the specific calculation tool provided by the tax office to determine your exact amount of available space.
How to apply
- Calculate your specific "jaarruimte" using the official tax office tool.
- Open a dedicated "lijfrente" account through a financial provider.
- Transfer your chosen contribution into that account.
- Claim the deduction on your annual tax return.