Jaarruimte

Jaarruimte is a Dutch tax term referring to the maximum amount of pension savings in a calendar year that can be contributed in a tax-favored way. It applies to private pension products such as lijfrente contracts or other allowed pension savings, and represents the space for which contributions may be deducted from income for tax purposes.

The jaarruimte is calculated annually by the Dutch Tax and Customs Administration (Belastingdienst) and depends on factors related to your pension accrual and your income. In broad terms, it takes into account the pension you have already built up in current arrangements, your earned income, and the state pension entitlement (AOW). The result determines how much you may contribute in that year while still receiving tax relief.

If you do not use the full jaarruimte in a given year, you may have reserveringsruimte (reserve space) from previous years that can, under certain conditions, still be used to obtain tax relief in later years. Both jaarruimte and reserveringsruimte together form the total potential tax deduction for pension savings.

Contributions must be paid to an approved pension product or financial institution to qualify for the deduction. The tax advantage is realized in the year of payment, reducing the taxable income for that year. The rules and calculations are subject to annual adjustments, so individuals often consult the Belastingdienst tools or a tax advisor to determine their specific jaarruimte and eligible contributions.