Purchase

18 Dec 2024

Purchase of real estate and holiday homes on Bonaire

Do you wish to invest on Bonaire or has Bonaire become your favourite holiday destination over the years? In that case, consider investing in real estate on Bonaire or buying a holiday home there. Keep in mind that for the purchase of real estate, Bonaire has its own rules. Furthermore, you should take into account that a holiday home on Bonaire is in principle subject to taxation in both the US and Bonaire.

Emigration to Bonaire

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.