Emigration

16 Dec 2024

Emigration

Bonaire is found attractive for many reasons. To be mentioned are the clean nature, the calm and sunny climate, a diverse paradise no crime and the favourable tax climate. Although Bonaire is part of the Kingdom of the Netherlands, Bonaire can to a very large extent determine its own course. This is especially true for tax laws and regulations. Bonaire has a very attractive climate for companies to establish themselves there. Emigrations to Bonaire take place for a variety of reasons.

Emigration is tailor-made, also for taxation. In case you have a business in the US, have built up a pension there or leave a home in the US, it is advisable to prepare the emigration thoroughly and map out any related tax consequences. Be prepared that if you emigrate based on tax arguments, you will also be domiciled in Bonaire based on actual circumstances. If this is not the case, the US IRS (tax authorities) will be able to conclude that you are deemed to be resident in the US for tax purposes. In that case, in principle, both the US and Bonaire could levy tax on your income and assets.

Establishing a company on Bonaire

Due to Bonaire’s favourable tax system and the low tax rates applicable on Bonaire, it may be advantageous to locate a company or a branch thereof on Bonaire. People regularly choose to set up a private limited company (BV) under Bonaire law, which has many similarities to the Dutch private limited company. For example, no profit tax is levied on Bonaire and dividend tax rates are very low. Bonaire’s income tax also has a low rate. Setting up a structure from the US is tailor-made and requires knowledge of both US and Bonairean laws and regulations.