Qualifying Recognised Overseas Pension Scheme.(QROPS): Moving Dutch Pension to a Recognised Pension Schem...

Qualifying Recognised Overseas Pension Scheme.(QROPS): Moving Dutch Pension to a Recognised Pension Schem...: India based Dutch expats who are relocating and retiring in India permanently can transfer their Dutch pensions to Recognized Pension Sche...

Moving Dutch Pension to a Recognised Pension Scheme in India

India based Dutch expats who are relocating and retiring in India permanently can transfer their Dutch pensions to Recognized Pension Scheme to avoid Dutch income tax, any capital gains tax in the Netherlands and avoid any Dutch taxes on death. You will also need to check the DTA between the country you reside in at retirement and the ROPS.

In accordance to the Pension Act, an International Value Transfer (IVT) of pension benefits accumulated in the Netherlands to a foreign country, is possible under certain conditions. You can transfer your pension accruals to various EU and non-EU pension schemes.

However, international tax-free transfers of Dutch pension benefits are only possible if approved by the tax authorities in the Netherlands.

You will need to phone both your Dutch pension company and the Dutch tax authorities, the Belastingdienst on +31 55 538 5385 to organise the “transfer out” papers and get the latest transfer value for your pension pot.Once the Dutch tax authority and your Dutch pension company allow a transfer, we can help you move your Dutch pension to India and invest it with the best investment Pension Schemes in India.

Why Transfer a Dutch Pension to a Recognised Pension Scheme in India ?

Here are some of the reasons to transfer a Dutch pension to India:

Benefits of a Dutch Pension Transfer Overseas to a ROPS in India. Benefits Only Apply if the Member is Not Tax Resident in the Netherlands

Ø  Avoids Dutch taxes like Dutch income tax,  Wealth & Estate taxes etc.,  

Ø  Receive Pension & other benefits in Indian currency.

Ø  Benefit from better appreciation opportunity presented by the Indian market.

Ø  Leave behind the unused pension funds for your beneficiary without any tax liability.

Ø  Benefits from a Growing Indian economy : In economies like Netherlands expected annual returns are in the range of 2 to 4%. Whereas India offers better earning opportunity than the Dutch market may offer. For instance, the Term-Deposit rate in India is above 8%.

Summary

The pension scheme in India presents you a unique opportunity where you can save 100% of your pension contributions made in Dutch.

The Indian economic growth provides an opportunity to improve returns on investments in comparison to Netherland/Dutch.

The 2014 budget in the Netherlands hit Dutch pensions hard. Some of the changes meant that:

Pension accruals (pension savings) will reduce for employees

 Survivor pensions payable on death would be reduced

In the event of disability, the level of insured coverage would be lower than at present

Reduced risk coverage

Can i transfer my Dutch Pension Scheme to an Indian Pension Scheme?

As of January 1, 2007, certain provisions concerning international transfers of pensions for Dutch expats moving overseas were incorporated in the Dutch Pensions Act .

Some of these provisions impose new obligations on pension funds. Thus, your current pension scheme is now obliged to co-operate in certain situations and must decide themselves whether the conditions are met to allow a transfer.

In other situations the pension administrator has the discretionary power to decide whether or not to co-operate; in these cases too, certain conditions apply.

Pension administrators have thereby acquired a personal responsibility with regard to international value transfers (IVT’s). In other words, your pension scheme has the ability to say yes or no to allow the transfer.

How to Transfer a Dutch Pension to a Recognised Pension Scheme In India ?

 How do I transfer my Dutch pension to a pension Scheme In India ?

You need to contact both the Dutch government’s tax revenue collection agency, the Belastingdienst, and you will also need to contact your current pension providers and ask them for an International Value Transfer (ITV).

Which Dutch pensions qualify to transfer overseas?

You cannot transfer Dutch state pensions (pillar 1) overseas. You can transfer second pillar and third pillar pensions though. That is those pensions where the employer and a member have contributed to a pension and private pension contributions.

Any Dutch pillar II pension can be transferred overseas if your current pension providers and Dutch tax authorities allow it.

To know in detail about the benefits or amount of pensionable service, the transfer value payment of Dutch pension pot will buy in the receiving pension scheme in India & also to know more about the options, pension schemes available in India to get your Dutch pensions transferred, I wish to schedule a free, no obligation telephone consultation to discuss ways I can help yourself and any of your colleagues who has accumulated pension fund in Netherland/Dutch. I can also be reached with the following contact details.

Mr Ravi Kumar. Financial Consultant (Code: 60272381), Exide Life Insurance Co Ltd. Branch- B 21, # 28, 6th floor, Centenary building, M.G Road, Bangalore-560 001.

Cell:     +919844519872, +919980927393
Email:  ravi.sampige@gmail.com