Dutch DGA pension 2026: ODV (oudedagsverplichting) explained

The Dutch oudedagsverplichting (ODV) is the most important and most-overlooked balance-sheet item for the typical DGA (the Dutch term for an owner-director who works for and owns shares in their own BV). It is the legal successor to the pensioen in eigen beheer (PEB), which the Dutch government abolished in 2017.

State of play in 2026: - An estimated 130,000 BVs still have an active ODV on their balance sheet - The average ODV balance is between €85,000 and €180,000 per DGA - Mismanagement can trigger an immediate income-tax assessment of 49.5% plus a 20% revision penalty

The ODV is neither a pension policy nor a regular annuity. It is a fiscal liability sitting on the BV balance sheet that must be revalued every year at a statutory rate.

Until 1 July 2017, DGAs were allowed to build up pension inside their BV (PEB). The legislator gave DGAs three choices in 2017:

1. Buy-out at a reduced rate (one-off, 2017–2019) — redemption of the fiscal value at 34.5% / 25% / 19.5%, no revision penalty. 2. Convert into an ODV — most common route (~70% of DGAs). 3. Continue (premium-free, "let it die") — less than 10% of DGAs.

This article focuses on Option 2.

Phase 1: Annual statutory accrual — 2.72% in 2026 (based on average U-yield over 2025). The BV deducts the revaluation from taxable profit.

Phase 2: Pension date — typically AOW age or up to 5 years earlier.

Phase 3: Payout (within 20 years) — even instalments (110% rule), Box 1 income tax for the DGA, deductible expense for the BV.

Convert when: BV cash is tight, DGA plans to sell/wind down the BV, or DGA expects to live well past 87 (longevity protection).

Keep ODV when: ample BV cash, long-term ownership intent, DGA wants flexibility on the annual instalment.

FINEO's Advice Centre runs the break-even analysis automatically.

Tax brackets 2026: - First bracket (up to €76,817): 36.97% - Second bracket: 49.5%

The DGA tunes the annual ODV instalment to keep total income (AOW + DGA salary + ODV + other) under €76,817 — staying in the lower bracket.

1. Late start of payouts — deemed buy-out, 49.5% + 20% penalty. 2. Uneven payouts — 110% rule violation triggers partial buy-out. 3. Annual revaluation skipped — fiscal balance inconsistent, dividends blocked. 4. Dividend without ODV test — personal liability under Article 2:216 BW. 5. Annuity conversion not registered — 49.5% + 20% penalty. 6. ODV forgotten on BV transfer — deemed release, fully taxable.

FINEO's Advice Centre handles the recurring obligations:

1. Annual statutory accrual booked (2.72% in 2026) 2. Pension-date alert 18 months before AOW age 3. 110%-rule even-spread check on every payout 4. Dividend test factors in the ODV liability 5. Yearly ODV-retain vs annuity comparison 6. BV-transfer / wind-down checklist

Saves most DGAs 4–6 hours of bookkeeper time per year and prevents thousands of euros in avoidable tax risk.

| Aspect | Keep ODV in BV | Annuity at insurer | |--------|----------------|---------------------| | BV liquidity | Blocks dividend room | BV is clean | | Payout duration | Max 20 years | Lifetime | | Annual flexibility | High (110% rule) | Low (fixed) | | Insurer fees | None | 1–2% per year | | At BV transfer | Dealbreaker | Personal — no issue | | Tax optimisation | High | Limited |

BV with ample cash + long-term ownership intent → keep ODV. Tight cashflow OR planning a sale → annuity.

1. Confirm the ODV balance with your accountant 2. Verify the annual revaluation (2.72%) 3. Decide pension date and payout plan 4. Run the dividend impact test 5. Get a side-by-side ODV-vs-annuity comparison 6. Planning a BV sale within 1–3 years? Start ODV settlement now 7. Activate FINEO's Advice Centre