Tax

Property tax

Property tax applies to:
– owners of second homes;
– non-residents who own land in the Caribbean Netherlands;
– owners who rent out immovable property;
– entities located within the Caribbean Netherlands that hold immovable property;
– entities located outside the Netherlands that own immovable property in the Caribbean Netherlands.

Just like land tax, the value is determined once every 5 years and the levy is annually from the owner on January 1st of that year. With property 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 have a second home in Bonaire that you rent out. The value of your home has been set at $300,000. In property tax, you will then pay 0.91% on $230,000 (value $300,000 minus $70,000 exemption). This amounts to an annual fee of $2,093.

Resident tax exemption: undeveloped lot

Owners of an undeveloped plot of land who are residents of the Caribbean Netherlands are exempt from property tax for this plot. It does not matter whether the land is owned land or leasehold land.

Alternative calculation of property tax

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
On Bonaire, you have a second home that you rent out. The value of your home has been set at $300,000. The basis for tax is then $230,000 ($300,000 value minus $70,000 exemption). You pay 0.7% on this value ($ 1,610) plus 30% island surcharges ($ 483). This amounts to an annual property tax rate of $2,093, or 0.91%.