How to Retire in the Netherlands

The Netherlands may not be the most obvious retirement destination in Western Europe, but it offers plenty to attract retirees. With its high standard of living, excellent universal healthcare system and deep cultural roots from historic cities and world-class museums to vibrant food traditions, the Netherlands could be an ideal place to enjoy your retirement years.

If you want to retire in the Netherlands, a financial advisor can help you create a retirement plan to reach all of your goals and needs.

Cost of Living and Housing

The cost of living database Numbeo says that consumer prices in the Netherlands are 0.9% lower than the U.S., when you exclude rent. And if you include the overall cost of rent between both countries, American retirees can save a small amount — the Netherlands becomes about 6% cheaper than the U.S. overall, with rent alone being about 17% lower. But when you compare rents between specific cities, your Social Security dollars could go even further in this Western European country than in the U.S.

For a specific comparison, let’s take a look at Amsterdam, which has just over 1.1 million people. Average rent in the Dutch capital is 41 % lower than in New York City. A one-bedroom apartment in Amsterdam’s city center averages $2,223. Meanwhile, a similar apartment in the Big Apple could cost you $3,866.

If you want to compare the average cost of rent in Amsterdam with other U.S. cities, the Dutch capital is 14% cheaper than in Los Angeles and 23% lower than Miami. However, Amsterdam rent is 37% higher than in Phoenix.

The Netherlands may not be as affordable as other European countries. But it may still be a reasonable choice depending on your financial options.

Retire in the Netherlands: Visas and Residence Permit

A couple who retired in the Netherlands taking a walk.

The Netherlands, like other European countries, is part of the Schengen Agreement. This means that American retirees are allowed visa-free entry into the Dutch country as tourists or for business purposes up to 90 days. If you plan on a longer residency, you will have to apply for a permit. Requirements will differ, depending on the reason for your stay. However, you should note the Netherlands has no specific option for retirees. So your pension income needs to be sustainable.

You can apply to the Immigration and Naturalisation Service (IND) for your residence permit once you have arrived in the Netherlands. In some cases, you will need a sponsor, such as an employer or partner, who will also need to submit an application (TEV). Once the IND approves your permit, it will be valid for up to five years.

Retire in the Netherlands: Healthcare

Universal healthcare is mandatory in the Netherlands — the country’s system makes health insurance compulsory for all residents, and expats are no exception to this rule. So American retirees who are permanent residents living in the Dutch country for more than three months will have to purchase private insurance. And to do so, you’ll need to register with your local council and receive a service number (BSN).

The basic insurance plan costs between $121 to $146 out of pocket, which will then become a monthly recurring payment. The government also reviews the mandatory deductible account and adjusts it yearly when needed. For example, in 2025, it’s $425. Consumers can also pay a voluntary deductible on top of the mandatory payment in exchange for a lower monthly premium.

Retire in the Netherlands: Taxes

If you are earning money in the Netherlands, then that income is subject to taxes. Those employed by a company will have the amount automatically deducted from their salary through a wage tax. But if you are self-employed, you will have to calculate and pay your income tax on the annual tax return.

The Dutch tax office divides income tax into three categories based on income bracket, worldwide income, individual gross salary and pensionable age. Non-residents are only subject to a tax on the income they earn from sources in the Netherlands.

Beyond the Netherlands, you should keep in mind that American citizens are still required to file tax returns with the U.S. government, independently from where they reside. However, expatriates in the Netherlands could get some relief thanks to a tax treaty between both countries that eliminates double taxation. On top of that, expats can also benefit from the 30% ruling. This policy allows employers to pay their foreign-born workers 30% of their income tax-free continuing for up to 10 years.

Retire in the Netherlands: Safety

While the Netherlands can be picturesque from the windmills to the tulips, general safety precautions are advised, as in other countries, to safeguard against crimes that could target tourists and other expats.

The U.S. Department of State’s Travel Advisory says that the Netherlands is a low-crime threat. However, it currently has the Dutch country at a Level 2 due to possible terrorism threats. The Netherlands raised its own threat level as well in 2019 and put forth counterterrorism measures to address the situation.

But while individuals are urged to exercise caution, the average traveler in the Dutch country has a generally safe experience, even in major cities like Amsterdam, Rotterdam and The Hague.

Bottom Line

Brightly painted houses on a tree-lined canal in the Netherlands.

While the Netherlands’ high standard of living may pose challenges for budget-conscious retirees, the country offers compelling advantages that can make it well worth the cost. Its universal healthcare system ensures access to quality medical care, and its rich cultural heritage, from charming canal cities and world-class art to a strong cycling culture and vibrant local markets, creates a rewarding lifestyle for those seeking more than just affordability. For retirees prioritizing quality of life, wellness and cultural immersion, the Netherlands may be an ideal fit.

Tips on Affording Retirement

Use a professional to make a sound plan. Retiring to the Netherlands can create a lot of financial complications. A financial advisor can help you navigate the nuances to achieve your goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area. You can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Diversify your retirement income. The Netherlands is one of the more challenging European nations to rely on your Social Security benefits alone. SmartAsset’s Social Security calculator can help estimate your benefit amount. This way you can compare it with the costs of living that you will have to pay during retirement.
Take advantage of tax-friendly retirement accounts. Whether you want to retire comfortably abroad or in the U.S., both an IRA or a 401(k) plan will offer you tax benefits, and help you grow your retirement savings with compound interest.