Glossary

An annuity (lijfrente) is a pension product in which you pay tax-deductible premiums and later receive periodic payments. For freelancers it is one of the few ways to build up pension with a tax advantage. The amount you may invest annually depends on your annual space (jaarruimte) and any carry-over space from previous years (reserveringsruimte). When payments start, you pay income tax, but usually at a lower rate than during your working years.