Update to Retirement age and the effect on double taxation
2013-11-15

In my earlier post, I have explained how US retirees over 60 effectively pay no Bonaire tax on retirement income. But retiring before 60 meant you would still be subject to the social insurance premiums. In rough terms it is the difference between no tax and about $8,000 in extra taxes per year. The change in retirement age adds a few more years where you may be subject to the $8,000 tax. If you were born before 1953, the social insurance taxes stop at age 60, so in 2012. If you were born in 1953, the retirement age increases to 62 and your social premiums stop in 2015. Born in 1954, age 63, stops in 2017. 1955 age 64 stops in 2019 and 1956 or later, age 65 is the retirement age. So please keep this in mind when reading the post below, it's not quite as good as it was if you move here as an early retiree, but just another maximum $600-700/month for living on Bonaire.

Please contact us if you're a bit confused about how this might affect you.

Back