If you own a business in the Netherlands, you can accrue a retirement reserve (oudedagsreserve) (in Dutch) by setting aside part of your profit every year. By doing so, you can postpone paying taxes over this amount until retirement. There is a maximum you are permitted to set aside each year.
You are permitted to convert all or part of your retirement reserve into an annuity (lijfrente), the premium of which is then tax deductible.
When do you qualify?
- You meet the hours criterion (described on the page Entrepreneur's allowance).
- You have not reached the State Pension age at the start of the calendar year.
How to apply?
From 1 January 2023, you can no longer build up a retirement reserve. The government is terminating the retirement reserve to prevent entrepreneurs from using the fiscal retirement reserve to get tax relief.