View Full Version : Personal Income Tax

11-09-2013, 06:01 AM
Hello Everyone,

My wife and I are intending to retire to Bonaire in 2014 and make it our permanent home. From everything we've read, we'll be taking the route of becoming residents and giving up our current residency in the EU. We are both British and over 60 years old.

My question is does anyone know of a website or booklet available which would explain our annual personal tax position as Bonaire residents? We have UK source pensions and dividends and interest from Jersey, Malta and Portugal. Do we pay tax on worldwide income? Is there a capital gains tax? It seems there is a personal tax allowance and an uplift allowance for being over 60 - would they apply to us as EU nationals? And is there an interest exemption?

On a theoretical annual income of $100,000, what is the likely tax payable and when?

Any assistance or pointers would be greatly appreciated.

Thanks a lot.

11-09-2013, 08:55 AM
Strongly suggest you contact the folks at Sunbelt Realty as they are well versed in answering these kinds of questions. Have you spent any time here for an extended period. Suggest you also look into the medical/heathcare issues. It becomes an issue for us old codgers in our 6o's..just google sunbeltrealybonaire...

11-09-2013, 01:48 PM
In addition to Michael's recommendation, I can also recommend PWC (Price Waterhouse Coopers) who can give tax advise in a wide variety of situations. Address your email to Pieter (the residing manager for Bonaire) and here's the link to their web site: http://www.pwc.com/an/en/offices/bonaire.jhtml

11-10-2013, 11:53 AM
Thank you both very much.

11-11-2013, 09:50 AM
First of all, it is best to get expert local advice about the local tax rates. If you are retired and not working on Bonaire, different types of income (earned income, pensions, interest, dividends, rental income, etc.) are taxed at different rates, so it is in your best interest to know at what rate each of these things are taxed at.

Here is a link to the tax office site explaining the tax rates: http://www.belastingdienst-cn.nl/bcn/nl/prive/belastingjaar-2013/inkomsten-belasting/tarieven-en-belastingvrije-bedragen-2013
The Bonaire tax rates for income earned ON Bonaire are progressive, and are as follows:
- 0% on the first $11,387 in income,
- 30.4% on your income from $11,387 to $250,000
- 35.4% for income over $250,000

Other considerations:
- Earned income is also subject to local payroll taxes and income tax withholding for earned income, usually for earned income over the first $11,387 in income
- Income from property rental of properties on Bonaire is not subject to Bonaire income tax. However, mortgage interest income on rental property is also NOT deductible.
- Dividend income from a Bonaire company is subject to a 5% tax, but is not subject to local income tax.

I can recommend two excellent local resources for Bonaire income tax information.

- Bruce Zavon is a US tax attorney living full time on Bonaire, and is very knowledgeable about both Bonaire taxes and US taxes. His e-mail is: bruce.zavon@zavontax.com (bruce.zavon@zavontax.com).
- Another good local source is Caribbean Accounting and Tax Services. The managing director at CATC is Jans Stam van Malsen. You can e-mail her at jvanmalsen@catcbonaire.com (jvanmalsen@catcbonaire.com) or phone them at +599-717-6530.

11-11-2013, 05:43 PM
And many thanks to you. We arrive tomorrow for an extended stay so we'll try to catch the people you mention.

11-11-2013, 05:54 PM
Please pass by my office, while you are here. I always like to put a name to a face. If there is anything else I can do for you, just let me know.