Understanding taxes
Bonaire has its own tax system, separate from the Dutch mainland — generally simpler, and with no VAT in the European sense. Here’s a plain-language orientation.
As part of the Caribbean Netherlands, Bonaire runs a distinct fiscal regime under the Belastingdienst Caribisch Nederland (BCN). It is generally simpler than the European-Netherlands system and, notably, has no box-3 wealth tax. All amounts are in US dollars. Rates below were checked against the official BCN pages; rates change yearly, so verify the current year before relying on a figure.
Good to know
- Tax authority
- Belastingdienst Caribisch Nederland
- Transfer tax
- 5% (existing homes)
- General sales tax
- ABB 8% goods / 6% services
- Own main home
- Exempt from real-estate tax
- Wealth tax (box 3)
- None
On this page
Taxes that touch property
If you buy, own or sell real estate, the taxes to know are:
- Transfer tax (overdrachtsbelasting): 5% of the value on an existing property, paid by the buyer at transfer. (There is no reduced first-home rate as on the Dutch mainland.)
- ABB on new construction: buying a newly built home from a developer is subject to 8% ABB instead of transfer tax.
- Real-estate tax (vastgoedbelasting): an annual tax on property — but your own main residence is exempt. It applies to second homes and rental/investment property (with a USD 70,000 value exemption), at an effective rate of roughly 0.9% of value on Bonaire.
ABB — the general expenditure tax
Instead of VAT, Bonaire levies ABB (algemene bestedingsbelasting). On Bonaire the general rate is 8% on goods, 6% on services and 7% on insurance. Passenger cars carry 25% ABB on import — but zero-emission (electric) cars are 0%. Import duty itself is 0% in the Caribbean Netherlands.
Income tax and living
Residents are taxed on income under the BES income-tax rules. For 2026 the official figures are a tax-free allowance of USD 21,956, with rates of 29.4% up to USD 53,198 and 38.4% above that. There is no separate box-3 wealth tax. Because circumstances vary widely — residency, source of income, rental activity — anyone relocating or investing should get advice from a local tax advisor or the BCN directly.
Tax office
Belastingdienst Caribisch Nederland (Bonaire)
Tax authorityThe BES-islands tax authority — transfer tax, ABB, real-estate and income tax.
- +599 715 8585
- Balie@belastingdienst-cn.nl
- Kaya L.D. Gerharts 12, Kralendijk
- Counter Mon–Fri 08:00–13:00
- belastingdienst-cn.nl
Frequently asked questions
Does Bonaire have VAT?
Not in the European sense. Instead of VAT, Bonaire levies a general expenditure tax (ABB) — on Bonaire 8% on goods, 6% on services and 7% on insurance.
Who pays the property transfer tax, and how much?
The buyer pays transfer tax (overdrachtsbelasting) of 5% of the value on an existing home. A newly built home bought from a developer is instead subject to 8% ABB.
Is there an annual property tax on my home?
Your own main residence is exempt from the real-estate tax (vastgoedbelasting). It applies to second homes and rental/investment property (with a USD 70,000 exemption), at an effective rate of roughly 0.9% of value.
Is there a wealth tax on Bonaire?
No. Unlike the European Netherlands, the Caribbean Netherlands has no box-3 wealth tax.
Sources & official links
For orientation only. Rules, rates and costs can change — always verify the current situation with the relevant authority or an advisor. · Last reviewed: July 2026.
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