The Netherlands needs to change its pension law. The European Court of Justice ruled that it has become very difficult for people moving within the European Union to carry their accumulated pensions with them.
Dutch law stipulates that if someone wants to transfer pension capital to a pension institution in another EU country, the options for early withdrawal (repayment) of this money should be no greater than in the Netherlands.
Strict rules
Early payment of your pension is possible in the Netherlands only in limited cases, for example if you have only accumulated a small pension.
If the repayment arrangements in the other country are more flexible, the person will need to pay tax on the transfer in the Netherlands. This is the case in many countries, as the Netherlands has relatively strict rules.
The taxes that must be paid may deter people from going to other EU countries to work. The European Court of Justice ruled that the Netherlands did not comply with European agreements on the free movement of workers and capital.
The dispute between the Netherlands and the European Commission has already lasted more than a decade.
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
