New Tax treaty between Ireland and the Netherlands

Effects on Pension and existing corporate structures

Pensions and corporate structures to be reviewed

New tax treaty

On 13 June 2019, Ireland and the Netherlands agreed a new income tax treaty. It will replace the old 1969 tax treaty. The usual constitutional hurdles will have to be taken before the treaty becoming in force. So luckily there is time to prepare. The most important changes in our view are:


* Introduction of an anti-abuse rule which will mostly effect existing corporate structures. This means, roughly speaking, that benefits of the treaty will not apply if the treaty is “abused” for tax benefits. Think of reduced dividend withholding tax rates that no longer apply etc. With these changes, the treaty will be in line with OESO/G20 BEPS requirements.

* Taxing rights on pensions will also change considerably. As such, this may effect existing pensioners or persons planning their retirement. If the pensions exceed EUR 25,000 the right to tax the pension will be allocated to the source country. This used to be where allocated to the country where the recipient of the pension lives. A transitional ruling should apply for existing pensioners.

Be prepared!

Changes in tax treaties may give opportunities. However, such changes almost always results in the need to review existing company structures. This specifically applies here due to the introduction of the anti-abuse rules.

For personal income tax situations the same applies: the allocation of rights to tax to another country may result in higher tax charges hence potential liquidity issues. In addition, more administrative expenses.


Our motto ‘Cross Borders with a Plan’ will apply here more than ever. If your financial situation depends on the tax treaty between Ireland and the Netherlands, it is time for action. We are happy to help reviewing your current structure or plans and to define new strategies if needed. Feel free to contact us for more information.