The agreement will make up for the shortage of cells across Belgium and send roughly 500 prisoners away for three years. Belgium will pay 30m euros (£26.8m) a year for sending its detainees across the border.
No prisoners who are "an escape risk or a risk to society" will be sent to Tilburg, Dutch officials said.
"The Netherlands is putting the prison and its personnel at Belgium's disposal for placing at least 500 detainees over a period of three years," the Dutch justice ministry said.
The prisoners will be guarded by Dutch wardens, but the prison director will be Belgian. There are still a number of issues that need to be resolved, including how often detainees may be seen by family and friends.
In Belgium, prisoners may receive visitors three times a week, while those in the Netherlands may only receive guests once a week.
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