In a pre-recorded address broadcast on TV, she said she would formally stand down on 30 April.
The queen, who is approaching her 75th birthday, said she had been thinking about this moment for several years and that now was "the moment to lay down my crown".
Queen Beatrix has been head of state since 1980, when her mother abdicated.
In the short televised statement, the queen said it was time for the throne to be held by "a new generation", adding that her son was ready to be king.
Prince Willem-Alexander, 45, is married to Maxima Zorreguieta, a former investment banker from Argentina, and has three young children.
He is a trained pilot and an expert in water management. Willem Alexander will become the Netherlands' first king since Willem III, who died in 1890.
Read more: BBC News - Queen Beatrix of the Netherlands to abdicate for son
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