Update Tax Reforms for BES Islands 2025

December 12, 2024

Although the implementation of the fiscal changes in the BES was originally postponed, this postponement has been cancelled and implementation is once again scheduled for January 1^st 2025.

Key measures include:

• Tax-Free Threshold Adjustment: The tax-free allowance in income- and wage taxation will be linked to the legal minimum wage.
• Increased Revenue Tax Rates: The rate for the revenue tax (opbrengstbelasting) will rise from 5% to 7.5%, also affecting taxation on substantial interest gains.
• Revised Income Tax Structure: The threshold for the second tax bracket in the income tax will be lowered to USD 50,000, with the same adjustment applied to wage taxation.
• Real Estate Tax increase: Properties used as hotel businesses will face an increase in real estate tax (vastgoedbelasting) from 10% to 11%.

These changes are scheduled for discussion in the House of Representatives (Tweede Kamer) on December 17^th 2024.