The Netherlands must amend pension law after the EU court ruling

The Netherlands must amend the pension law. It is made too difficult for people who move within the European Union to take their accrued pension with them, the European Court of Justice rules.

Dutch law stipulates that if someone wants to transfer his pension capital to a pension institution in another EU country, the options for early withdrawal of this money (redemption) may not be wider than in the Netherlands.

Early payment of pension is only possible in the Netherlands in a limited number of situations, for example if you have only built up little pension.

If the redemption rules are more flexible in the other country, the person must pay tax on the transfer in the Netherlands. Because the Netherlands has relatively strict rules, this is the case for many countries.

The taxes that have to be paid can discourage people from moving to other EU countries for work. The European Court rules that the Netherlands does not comply with the European agreements for the free movement of workers and capital.

The dispute between the Netherlands and the European Commission had been going on for more than ten years.