Fiscal changes for BES islands in 2025.

August 29, 2024

On August 24^th 2024, the Dutch council of Ministers has adopted the Tax Plan 2025 for the BES islands. This plan includes proposed changes in the fiscal legislation for Bonaire, St. Eustatius and Saba effective as per January 1^st 2025. Note that this plan still has to be approved by the Council of State and is contested by the BES islands. It may therefore be adjusted and is scheduled to be presented to the House of Representatives on September 17^th (Prinsjesdag).

The changes currently include the following:

Real estate tax (vastgoedbelasting)

1. The investment facility, exempting value increase of property as a result of (re)construction, is shortened from ten years to five years.
2. The tax rate for hotels is increased from 10% to 11% on a fictional income of 4% of the value of the property.

Revenue tax (opbrengstbelasting)

1. The tax rate for the revenue tax (for example on dividends) is increased from 5% to 7.5%.

Income tax (inkomstenbelasting)

1. The revenue tax due at the moment of fiscal emigration of a corporation is no longer deductible in the personal income tax.
2. The tax free allowance (belastingvrije som) is linked to the minimum wage.
3. The top rate (35.4%) for the personal income tax becomes applicable to annual income exceeding USD 50,000 instead of USD 322,769.
4. The exemption for rights to annuities (stamrechtvrijstelling) will be abolished.

This list above is a condensed overview to illustrate specific changes. More changes have been announced and the changes could apply to a wider scope of scenarios. For more information about the impact of the fiscal plans for the BES islands in 2025, please can contact Maarten Tervoort or Jorik Julsing.