For many British and international expatriates living in the Netherlands, maintaining control over retirement savings is a top priority. Whether you’ve relocated for work, lifestyle, or retirement, understanding how your UK pension fits within your new life abroad is crucial to protecting your wealth.
One of the most flexible and effective ways to manage UK pensions while living overseas is through a SIPP (Self-Invested Personal Pension). For expatriates in the Netherlands, a SIPP can provide control, investment freedom, and long-term tax advantages — all within a UK-regulated pension structure.
Here’s what you need to know about SIPPs, their benefits, and how they can support your financial future in the Netherlands.
What Is a SIPP?
A Self-Invested Personal Pension (SIPP) is a UK-registered pension that allows you to take direct control of your retirement savings and investment decisions. Unlike traditional pension plans that offer limited fund choices, a SIPP enables you to choose from a wide range of assets, including:
- Shares, ETFs, and bonds
- Unit trusts and investment funds
- Cash deposits
- Commercial property
Because SIPPs are regulated by the UK’s Financial Conduct Authority (FCA), they offer both transparency and protection, making them a popular choice among expatriates who want to manage their pensions from abroad.
Why SIPPs Appeal to Expatriates in the Netherlands
Living in the Netherlands offers expatriates a stable and secure financial environment — but managing a pension held in another country can be complex. A SIPP bridges this gap by allowing you to retain your pension in the UK while benefiting from global investment options and flexible access to income in retirement.
1️⃣ Greater Control and Transparency
With a SIPP, you choose where your money is invested and how it grows. You can adjust your investment strategy as your goals or market conditions change — an advantage for expatriates who want oversight of their retirement capital.
2️⃣ Flexible Drawdown Options
From the age of 55 (rising to 57 from 2028), SIPP holders can access their pension through flexible drawdown, allowing you to manage income withdrawals to suit your tax and lifestyle needs. For expats living in the Netherlands, this flexibility makes it easier to coordinate with local tax rules and exchange-rate fluctuations.
3️⃣ Consolidation of Multiple Pensions
If you’ve worked for different employers in the UK, you may have several smaller pensions. A SIPP allows you to consolidate them into a single, manageable structure, simplifying administration and potentially reducing costs.
4️⃣ Investment Growth Potential
SIPPs give you access to a broad range of investment opportunities, offering the potential for greater long-term growth compared to traditional defined contribution schemes. This flexibility helps offset inflation and maintain your purchasing power during retirement.
5️⃣ Currency Flexibility
For those earning or living in euros but holding savings in sterling, managing exchange-rate exposure is essential. SIPPs can hold investments in multiple currencies, allowing you to mitigate currency risk — a key advantage for expatriates in the Netherlands.
Tax Considerations for UK Expats in the Netherlands
As a Dutch tax resident, your global income — including UK pension income — is generally taxable in the Netherlands. Fortunately, under the UK–Netherlands Double Taxation Treaty, most UK private and occupational pensions (including SIPPs) are taxable only in the Netherlands, not in the UK.
This means:
- You will pay income tax on your pension withdrawals in the Netherlands at local rates.
- UK pension providers typically pay income gross, without withholding UK tax.
- You can optimise your income strategy to take advantage of Dutch tax allowances and reduce your total liability.
However, taxation can vary depending on your residency status, domicile, and whether you retain other UK-based income or assets. Working with a cross-border financial adviser ensures your withdrawals are structured efficiently and remain fully compliant with both UK and Dutch regulations.
SIPPs vs. QROPS: Which Is Right for You?
For expatriates, both SIPPs and QROPS (Qualifying Recognised Overseas Pension Schemes) offer international pension flexibility — but they serve different needs.
| Feature | SIPP | QROPS |
|---|---|---|
| Regulation | UK-regulated (FCA) | Overseas jurisdiction (HMRC-recognised) |
| Tax Treatment | UK rules apply, withdrawals taxed in the Netherlands under treaty | Local taxation rules apply depending on jurisdiction |
| Currency | Primarily GBP (can hold multi-currency assets) | Often available in EUR, USD, GBP |
| Best for | Expats maintaining UK ties or planning to return | Long-term expats seeking full separation from UK pension rules |
For many British expatriates in the Netherlands, SIPPs offer the best balance of control, protection, and tax efficiency, especially for those who want to remain under UK regulation or plan to return in the future.
Estate Planning and Inheritance
SIPPs also offer valuable estate-planning benefits. Upon death, your remaining pension funds can be passed to your chosen beneficiaries — often free of UK Inheritance Tax (IHT) if death occurs before age 75.
This flexibility ensures your pension remains a powerful intergenerational wealth vehicle, allowing you to leave a financial legacy while maintaining control during your lifetime.
Expert Guidance for Expats in the Netherlands
Managing your pension as an expatriate requires careful coordination between UK and Dutch tax frameworks, currency management, and long-term investment strategy.
At Blacktower Financial Management, we specialise in helping UK and international expatriates in the Netherlands take control of their pensions and retirement planning. Our advisers provide:
- Tailored advice on SIPPs and QROPS
- Cross-border tax and pension planning
- Investment management in multiple currencies
- Estate and inheritance guidance for global families
With nearly 40 years of experience advising expatriates across Europe, Blacktower delivers clarity, compliance, and confidence — helping you secure your financial future abroad.
Take Control of Your Retirement Future
Living in the Netherlands offers a rewarding lifestyle — but to enjoy it fully, you need financial certainty. A well-structured SIPP can give you the control, flexibility, and protection you need to build a comfortable, sustainable retirement.
📞 Book your complimentary consultation today
Speak with one of Blacktower’s cross-border pension specialists to learn how a SIPP can help you secure your financial future in the Netherlands.