Do I Need a Local Entity to Hire in Bonaire?

In Bonaire, a "local entity" refers to a recognized employing presence, such as a subsidiary or a branch office. This setup allows your company to be recognized as an employer, enabling you to manage payroll and comply with local employment laws.

Without establishing a local entity, you generally cannot register as an employer, manage payroll with local tax withholdings, or issue compliant employment contracts. An alternative is to use an Employer of Record (EOR), which can handle these responsibilities on your behalf.

What is Required to Employ Someone in Bonaire?

• Local employing entity required to directly employ? Yes (you need to register with the Chamber of Commerce)
• Payroll registration required? Yes (mandatory for tax compliance with the Tax Office)
• Withholding/tax remittance required? Yes (employers must withhold income tax and social security contributions)
• Social contributions required? Yes (employers are responsible for social security payments)
• Local employment agreement required? Yes (written contracts are mandatory under local law)
• Mandatory benefits to budget? Yes (includes vacation pay and sick leave)
• Works council/collective agreements considerations? Usually (depends on the sector and number of employees)

Best Options If You're Hiring in Bonaire

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but it’s essential to ensure that the contractor relationship is genuinely independent.

While hiring contractors can bypass the need for a local entity, Bonaire has strict regulations regarding worker classification. Misclassifying a contractor as an independent worker when they function like an employee can lead to significant penalties.

Consider these factors when hiring contractors:

• Ensure the contractor has multiple clients and is not exclusively working for your company.
• Maintain minimal control over how the work is performed.
• Clearly define the scope of work in the contract to avoid misclassification risks.

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It often takes 4–8 weeks to set up an entity in Bonaire, depending on the required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 500–1,000 ANG per month ($280–$560)
• Payroll provider: Estimated 100–300 ANG per employee per month ($56–$168)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 2,000–5,000 ANG per year ($1,120–$2,800)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 p/month with Playroll)
• Pass-through statutory costs (e.g., employer social security contributions)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in Bonaire

Hiring in Bonaire can be complex, but it doesn’t have to require setting up a local entity or taking on long-term overhead. With an Employer of Record like Playroll, you get a simple, predictable way to hire compliantly while keeping costs transparent and under control. We help you:

• Hire employees in Bonaire quickly without establishing a local entity, eliminating incorporation costs, ongoing administration, and exit complexity.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s payroll services.
• Control your total employment costs, with a clear monthly EOR service fee (from $399 per employee).
• Focus on growing your business, while we manage contracts, payroll, compliance, and labor law obligations end to end.
• Scale up or exit the market easily, without the financial or legal burden of closing a local entity.