All about taxes

There are two types of taxes on real estate on Bonaire: land tax and real estate tax. This collection takes place via the Tax and Customs Administration of the Caribbean Netherlands. On this website of Harbourtown Real Estate we want to explain as briefly and concisely as possible what the difference is and what is important to know. An immovable property is, for example, a (holiday) home, a piece of (construction) land or a commercial building.

Ground tax
The owner-occupied home that a taxpayer uses as a principal residence is considered for ground tax. An ‘own home’ is a home that is available to an owner as main residence and of which the owner is a resident of the BES-islands (Caribic Netherlands). The Island Territory may levy ground tax on the value of the owner-occupied home. In addition, an exemption from real estate tax applies to, among other things, unbuild lots whose owner is a resident of the BES-islands (Caribic Netherlands). The value of the homes is determined once every 5 years. The tax is 0.345% on the determined value of the property.

Calculation example
You are a resident of Bonaire and you own a house in which you live. The value of your home has been set at $300,000. In that case, you pay $1,035 annually in ground tax.

Property Tax
Property tax applies to:
• owners of second homes;
• non-residents who own unbuild lots on Bonaire.
• owners who rent out immovable property;
• bodies established in the Caribbean Netherlands that hold immovable property
• entities established outside the Netherlands that own immovable property on Bonaire;

Just like ground tax, the value is determined once every 5 years and the levy is annually from the owner on January 1st of that year. With real estate tax, an exemption applies on the first $ 70,000 of the value of second homes. 0.91% is subject to tax on the capital gain. Property tax is levied on the long lease land by the leaseholder of the land. Even if the private individual or legal person is not resident or established in the Caribbean Netherlands, there is a tax liability for property tax.

Calculation example
You own a second home on Bonaire that you rent out. The value of your home has been set at $300,000. You then pay 0.91% on $230,000 (value $300,000 minus $70,000 exemption), which means $2,093 annually in real estate tax.

Alternative Property Tax Calculation
The rate for the real estate tax is 17.5% of the benefits from the real estate. This rate is calculated on the notional income of 4% of the value of the immovable property. Effectively, the rate is 17.5% X 4% = 0.7%. The island territory of Bonaire has set the surcharge at 15% of the property tax levied on real estate on which real estate tax is levied. As of January 1st, 2020, these surcharges have been set at 30% over the central government property tax of 0.7%.

Calculation example
You have a second home on Bonaire that you rent out. The value of your home has been set at $300,000 and the tax base is $230,000 (value $300,000 minus $70,000 exemption). You pay 0.7% on this value ($ 1,610) plus 30% island surcharges ($ 483). This equates to $2,093 a year in real estate tax, or 0.91%.

The Tax and Customs Administration of the Caribbean Netherlands – Bonaire has a very extensive website where you can find all information about this. Via this link you will find all brochures and also a lot of additional information and tax forms.

You can of course also contact the Tax Authorities directly with your specific questions:

Tax Office Bonaire – Caribic Netherlands
Kaya L.D. Gerharts 12 – Kralendijk – Bonaire
Phone: +599 715 8585 – Fax: +599 715 8800

We can imagine that you cannot find the information you are looking for. In that case, don’t hesitate to contact us. We are happy to help you!!

 

Your specialist in Real Estate!

Our real estate agent on Bonaire is happy to help you find your dream home or perhaps the right piece of land on which you can build your own villa. But we are also happy to assist you with the sale or rental of your home. Since 1989, Harbourtown Real Estate has been the place to be to help you realize your housing needs.

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Kaya LD Gerharts 20, Kralendijk
Bonaire - Caribbean Netherlands

Phone (Bonaire): +599 717 55 39
Tel (Netherlands): +31 (0)85 8 88 05 08

info@harbourtownbonaire.com

Office hours: 8:30 - 17:30
Closed on: Saturday and Sunday