AOW, AOV and the BES taxes: what stops and what travels with you

For the SVB and the Belastingdienst, Bonaire is abroad; for constitutional law it is the Netherlands. Out of that split comes a tax picture that turns out surprisingly favourable — with two sharp edges.

The accrual stops, the benefit travels first class

Whoever moves to Bonaire is no longer insured for the AOW (the Dutch state pension): the Caribbean part of the Kingdom counts as living outside the Netherlands, and every missed year costs two per cent of AOW. In its place begins the Caribbean AOV (the Caribbean Netherlands state pension) — same system, its own pot: two per cent accrual per year of residence between 15 and 65, with in 2026 a full pension of $ 1,576 a month and a pension age of 65 (not 67). Whoever crosses over halfway through their working life therefore ends up with two half basic pensions; voluntarily continuing your AOW insurance is possible, provided you apply within a year of departure.

The benefit side is the windfall. AOW already built up goes along in full — the export decree literally says you receive your AOW "as if he lived in the Netherlands", so the 70% single person's rate stays in place too, where most non-treaty countries drop to 50%.

Who taxes: the country of residence, at the milder rate

Between the European and the Caribbean Netherlands there is no tax treaty but the Tax Regulation for the country of the Netherlands (Belastingregeling voor het land Nederland), and that assigns pensions, annuities and AOW to the country of residence: Bonaire. The SVB then no longer withholds Dutch wage tax. The BES rate does the rest: a tax-free allowance of almost $ 22,000 (with the elderly supplement on top of that), then 29.4% up to well over $ 53,000 and 38.4% above that. For an average pension income that is considerably milder than the Dutch levy. Two exceptions: government pensions (ABP on account of government employment) remain taxed in the Netherlands, and the Netherlands may also tax a surrender before the commencement date.

Wealth has its own surprise: box 3 doesn't exist on Bonaire. Savings and investments are untaxed there; only real estate that isn't your main residence falls under the property tax (effectively 0.91% of the value a year), and the house you live in yourself is exempt.

The sharp edge: the protective assessment

Here the island's status takes its revenge. Bonaire is not EU or EEA territory (it has the status of an overseas country and territory, OCT), and with that the protective assessment on your pension and annuity accrual falls under the strict regime: no automatic deferral as with a move to Spain or Finland, but deferral on request — and the Belastingdienst can demand security, such as a bank guarantee. For most emigrants it stays at paperwork, but whoever has a large pension or a substantial interest wants to have this calculated with a tax adviser before departure. The standard rules continue to apply: ten years without prohibited actions (surrender above all), then remission on request.

In Vertrekklaar this is phase 2 of 5 of the journey: the same steps, but applied to your situation — in your order, tickable, and with the deadlines monitored. See the whole journey to Bonaire.