Taxes

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%.

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