Land tax and real estate tax on Bonaire

Land tax and real estate tax on Bonaire apply to different types of property owners: as a property owner, you will generally be subject to one or the other, but not both. These taxes are collected by the Tax Administration Caribbean Netherlands. We will briefly explain the differences between the two.

Land tax

Residents of Bonaire who own and live in their home as their primary residence pay land tax. The value of the property is assessed every five years. The tax rate is 0.345% of the assessed value of the property.

Example calculation
You are a resident of Bonaire and own the home in which you live. The assessed value of the property is US$ 300,000. You would therefore pay US$ 1,035 in land tax per year.

Real estate tax

Real estate tax applies to:
• owners of second homes;
• non-residents who own land in the Caribbean Netherlands;
• owners who rent out real estate;
• entities established in the Caribbean Netherlands that own real estate;
• entities established outside the Netherlands that own real estate in the Caribbean Netherlands.

As with land tax, the value of the property is assessed once every five years. Real estate tax is charged annually to the person who owns the property on January 1 of that year. For second homes, the first US$ 70,000 of the property’s value is exempt from real estate tax. On Bonaire, an effective real estate tax rate of 0.91% is applied to the remaining value. For long lease land, the real estate tax is levied on the long leaseholder. Individuals and legal entities that are not resident in the Caribbean Netherlands are also subject to real estate tax on qualifying real estate located in the Caribbean Netherlands.

Example calculation
You own a second home on Bonaire that you rent out. The assessed value of the property is US$ 300,000. You pay real estate tax at a rate of 0.91% on US$ 230,000 (the assessed value of US$ 300,000 minus the US$ 70,000 exemption). This amounts to US$ 2,093 per year.

Real estate tax exemption for residents with an undeveloped lot

Owners of undeveloped land who are residents of the Caribbean Netherlands are exempt from real estate tax on the lot. It does not matter whether the property is freehold land or long lease land.

Investment exemption for real estate tax

For new construction, remodeling, improvements, extensions, or renovations, a temporary real estate tax exemption may apply. Any increase in the property’s value resulting from the investment may be exempt from real estate tax for a period of five years. To qualify for this investment exemption, you must notify the Tax Administration Caribbean Netherlands in a timely manner.

How is the 0.91% real estate tax calculated?

The real estate tax rate is 17.5% of the deemed income from the property. This rate is applied to a deemed income of 4% of the property’s value. This results in an effective rate of 17.5% × 4% = 0.7%. On Bonaire, an additional 30% island surcharge is levied on the calculated real estate tax, bringing the effective real estate tax rate on Bonaire to 0.91%.

Example calculation
You own a second home on Bonaire that you rent out. The assessed value of the property is US$ 300,000. The taxable value for real estate tax purposes is therefore US$ 230,000 (the assessed value of US$ 300,000 minus the US$ 70,000 exemption). You pay 0.7% on this amount (US$ 1,610), plus a 30% island surcharge on the calculated tax (US$ 483). This results in an annual real estate tax of US$ 2,093, equivalent to an effective rate of 0.91%.

The Tax Administration Caribbean Netherlands – Bonaire has a comprehensive website where you can find detailed information on this subject. Via this link, you can find all brochures, additional information, and tax forms.

Tax Administration Caribbean Netherlands – Bonaire
Kaya L.D. Gerharts 12 – Kralendijk – Bonaire
Phone: (+599) 715 8585

Of course, you can also contact your real estate agent, Harbourtown Real Estate, if you have any questions. Use our contact form or email us at info@harbourtownbonaire.com.

Real estate agent on Bonaire since 1989

Whether you are looking to buy or sell a home on Bonaire, searching for a building lot or an oceanfront villa, or want to rent or rent out a property, Harbourtown Real Estate can help with virtually all your real estate needs. Our team is also here to assist you with appraisals, property valuations, buyer representation and commercial real estate.

Harbourtown Real Estate has been active as a real estate agency on Bonaire since 1989. With decades of experience, we know the local real estate market inside and out. We combine that knowledge with personal service, clear communication and professional guidance every step of the way.

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