At first glance, it looks like a neat workaround. In reality, it could be very bad advice.
Dutch pensions can be easily transferred abroad to avoid restrictions and charges. That’s what current marketers are claiming: by transferring to a Malta IORPs (Occupational QROPS), Dutch residents can set up a company, put in a little money, and beat the system. At first glance, it looks like a neat workaround. In reality, it could be very bad advice.
How the Scheme Works
- The individual creates a new limited company (sometimes offshore).
- The company becomes the “sponsoring employer” of a Malta IORP.
- The individual “employs” themselves with a token salary or consultancy contract.
- The Dutch pension (or UK pension held by a Dutch resident) is transferred in, framed as an occupational scheme transfer.
Why This Is Problematic in the Netherlands
- Dutch Pension Law
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- Dutch pensions are heavily regulated by the Pensioenwet and supervised by the AFM (Autoriteit Financiële Markten) and DNB (De Nederlandsche Bank).
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- Transfers abroad are only permitted under strict conditions and must protect members’ rights.
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- A shell “consultant” company does not create a genuine employer/employee link under Dutch law.
- IORP II compliance
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- As with Ireland, the IORP II Directive requires a sponsoring employer to have real economic substance. A “one-man consultancy” set up purely to move pension money does not meet this standard.
- Tax risks
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- The Netherlands taxes worldwide income of residents. Any benefits eventually paid from a Malta IORP will still be taxed in the Netherlands.
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- Dutch tax authorities (Belastingdienst) may treat the transfer as an attempt at tax avoidance, with backdated assessments and penalties.
- Consumer protection
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- The AFM has consistently warned against offshore pension schemes being marketed as “loopholes.”
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- If the scheme is later found invalid, clients could face not only tax charges but also difficulty recovering their pension savings.
The Bottom Line for Dutch Residents
If you are Dutch resident (or living in the Netherlands) and are advised to transfer your pension to a Malta IORP via a shell company, be extremely cautious.
- Such arrangements are likely to be treated as artificial and non-compliant.
- Dutch regulators and tax authorities have little tolerance for these structures.
- You could face unexpected tax bills, penalties, and the risk of your pension being outside proper Dutch protections.
Final Thoughts
A real occupational pension must be backed by a real business and a genuine employment contract. A €500 consultancy with no economic activity does not pass this test. If you’re told it will, ask your adviser for a written indemnity against Dutch tax authority action — chances are, they won’t provide one.
