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Caribbean Netherlands - Other taxes and levies

Caribbean Netherlands - Other taxes and levies

Taxation of international executives


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Social security tax

Are there social security/social insurance taxes in your country? If so, what are the rates for employers and employees?

Social security contributions

The social security tax for old-age pension, widows, and orphans is now included in the income tax rate of 30.4%. The income tax rate also includes a health insurance premium. All residents of the Caribbean Netherlands are covered for health insurance.

Employers must pay an employee insurance premium of 18.1% on all salary, without a maximum, for accident insurance and health insurance for employees.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in your country?

There is no inheritance or gift tax in the Caribbean Netherlands.
Property taxes

A property tax is levied on real estate located in the Caribbean Netherlands at an annual rate of 0.3% on the value of the land.

Real estate tax

Are there real estate taxes in your country?

Real estate tax

Income from immovable property is subject to real estate tax. The real estate tax is levied based on the value of real estate. As is the case at present, the value is established for five years each time. The income is deemed to be 4% of the value of the real estate and the tax rate is 10% for hotels and 17.5% for other real estate. Therefore, the tax effectively amounts to 0.4% and 0.7% of the value, respectively.

In cases where the value of the real estate has increased as a result of construction, improvement, expansion, or renovation, the increase in value will be tax exempt for the first ten years. The exemption will only apply if the taxpayer files a request with the tax inspector to determine the amount of increase in value no later than the following year.

An exemption applies for the dwelling that serves as the principal residence. Other residences are taxed on the value exceeding USD 70,000. Land that is being commercially operated for agricultural or forestry purposes is also exempt. Furthermore, real estate belonging to the business capital of an individual operating as an entrepreneur will be exempt, as income tax is already levied on this real estate.

Sales/VAT tax

Are there sales and/or value-added taxes in your country?

Sales tax

A general expenditure tax (Algemene Bestedings Belasting or ABB) has replaced the levy of import duties, as well as the former sales tax (Omzetbelasting or OB and Belasting op Bedrijfsomzetten or BBO), of the former Netherlands Antilles. The rate is 8% in Bonaire and 6% in Saba and St. Eustatius.

The rate for insurances is 9% and 7%, respectively.

The rate for services, including restaurants and bars, is 6% and 4%, respectively.

The rate for cars is 25% in Bonaire.

The following rate applies to cars in Saba and St. Eustatius:

  • 18% on the price up to USD 20,000.
  • 22% on the price from USD 20,000 to USD 30,000.
  • 30% on the price over USD 30,000.

However, if it concerns a very low energy car, the rate is 0% on each island.

ABB is levied in respect of:

  • Sale of goods by manufacturers.
  • Delivery of services within the levy area.
  • Import of goods.

Therefore, the sale of goods will only be subject to tax once, at the manufacturer or at the time of import. The sale of bread has been exempt. In addition, the supply of grain, potatoes, and rice will also be exempt. Other exemptions that apply, similar to the former OB and BBO legislation, are:

  • Public transportation.
  • Medical services and hospitals.
  • Water and electricity.
  • Fuels and other products, including supplies, for international transportation.
  • Renting of houses.

Other taxes

Are there additional taxes in your country that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

Local taxes

Excise taxes

Excise tax is due on gasoline. On Bonaire, excise tax is also due on alcohol, with different tariffs for liquor, wine, and beer, as well as for tobacco. This does not apply to Saba and St. Eustatius.

The excise rates are:

  • USD 31.86 per hectolitre of gasoline or approximately USD 1.20 per gallon on Bonaire (USD 0.90 on Saba and St. Eustatius).

Only on Bonaire:

  • USD 67.04 per hectolitre of beer.
  • USD 128.50 per hectolitre of wine.
  • USD 12.85 per volume percent of alcohol per hectolitre of distilled products.
  • USD 8.69 per 100 cigarettes (import).
  • USD 9.78 per 100 cigars.
  • USD 4.89 per 100 cigarillos.
  • USD 30 per kilogram of smoking tobacco.

Transfer taxes :
The transfer of local immovable property is subject to a 5% transfer duty.

No stamp tax is levied in the Caribbean Netherlands

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