The E-Zone

On March 1, 2001 the government of the Netherlands Antilles has passed the Ordinance on E-zones. This ordinance provides special tax incentives for E–business companies when they establish their business on one of the islands of the Netherlands Antilles (Bonaire).

Electronic businesses have become one of the biggest opportunities or threats for many business people, as it changes the way most businesses are conducted. Any company that is currently involved in the production, distribution or sale of electronic products and services or physical merchandise, is facing changes that cannot be ignored. It is especially for these companies that E-zones are being developed on Bonaire.

What is an E-zone?

An economic zone is defined as a site or sites designated as such, where goods can be stored, processed, worked up, assembled, packed, displayed and re-exported outside of the N.A. territory, or can undergo other treatments, and where or from where services may be provided. Services are defined in this context as:

Why E-zones on Bonaire?

In order to broaden the economic basis of Bonaire and to encourage the economic development of Bonaire, economic zones are established in which certain facilities are applicable. These facilities include the exemption of import duties, export duties, excise duties, turnover tax, special levies and profit tax. Profit tax will be levied by a rate amounting to two percent of the realized profit, including surcharges.

For whom is the E-zone?

Only a corporate body with a capital divided in shares, which will operate a business exclusively in the relevant zone, will be admitted to an economic zone. The admission may be subject to restrictions and regulations. The corporate body may be granted a license for the acquisition of ownership rights of land, the establishment of a real right of enjoyment of land, including the right to erect buildings in the relevant zone, or the realization of infrastructure provisions in the relevant zone, including the construction of business premises.

Supply of goods present in an economic zone to the home market by a corporate body, as contemplated in this context, will only be possible on the ground of a license granted by the Island Executive Council of the Island of Bonaire in agreement with the Minister of Finance. The license will be granted for a definite period of time and may be renewed each time by the Island Executive Council of the Island of Bonaire.

The E-zones on Bonaire

Investment possibilities in economic zones on Bonaire are possible at this present moment in two established and soon to be established economic zones, namely:

1. TELBO Economic Zone
2. BIA Economic Zone.

TELBO Economic Zone

Telefonia Bonairiano N.V. (TELBO) offers superior data-center services on Bonaire, thereby becoming a facilitator of international e-Commerce business. TELBO E-Z focuses on attracting dot-com companies and other e-Commerce customers to co-locate their equipment at their new data-center (250m2) to be built on an area of approximately 2,005 m2. On that same area, a two-floor building (1,250 m2 per floor) will be built. In the existing building of TELBO, 101.25 m2 will also be designated to this new venture. In order to attract international clients, the new facilities will be built and managed according to international industrial standards.

TELBO E-Z will primarily target international clients that run ‘e-Commerce hubs’ which offer international web-related services. Target groups include e.g. on-line payment brokers, global travel networks, gaming industry, international dot.com companies, internet related financial companies, marketing, management consultants and commodity broker institutions etc…

The services offered by TELBO Economic Zone include:

Co-location services

TELBO E-Z will offer a bundle of IP connectivity and suites/cages/racks in a highly secure, conditioned environment that enables clients to locate their own IT equipment in the TELBO E-Z Data-center and connect it directly to the Amerigo Vespucci. This submarine optical cable has been operational since 1998 and has a total capacity consisting of 6 twisted pairs. Together with the current termination equipment, these twisted pairs have a theoretical capacity of 2.5Gb per twisted pair, amounting to 15 Gb in total). It is a scalable and flexible solution for space and bandwidth needs while ensuring minimal business risks. TELBO E-Z focuses on renting standard and premium racks. Rental of suites and cages are also available in the service package.

Network services

TELBO E-Z will offer its clients bandwidth (per E1) at competitive prices.

Hosting services

TELBO E-Z will offer basic and premium hosting services with maximum flexibility, scalability and performance, backed up by Service Level Guarantees.

Office space leasing

The office space in the new building of TELBO E-Z meets today’s requirements and will be leased to the clients.

The Bonaire International Airport E-Zone

Bonaire is strategically enhancing its airport facilities. Using Bonaire as a hub for destinations, by especially creating a suitable and highly efficient bridge between Europe and South America and between North America and South America. These improved airport facilities are also envisioned to create possibilities for the development of economic activities other than tourism, including transshipment, cargo-hub, e-commerce, assembling companies etc. In this regard, BIA is developing a 75 acres of multi-functional warehouse facilities in three stages. The Economic-Zone Ordinance including the investment incentives applicable are in charge of the management of the 75 acres of multi-functional warehouse facilities.

Bonaire Airport Details

For more information please contact the Department of Economic and Labour Affairs.