All about taxes on Bonaire - Dutch Caribbean
Since Bonaire became a special municipality of The Netherlands a lot of things changed among which our tax system. Not all has changed but a number of changes have been enforced which are very important to you as (future) home owner or resident on our beautiful island.
The Tax Office has a webiste on which all information can be found, and however the site itself is in Dutch; all forms and brochures are forehand in the English language! Clicking here will take you to their website, go to treasurury followed by Belastingdienst where you can find general information. We advise you to contact the Tax Office directly with all your personal questions:
Tax Office Bonaire - Dutch Caribbean
Kaya L.D. Gerharts 12
Phone: +599 715 8585
Fax: +599 715 8800
We can imagine you might not find the information you are looking for; in that case please do not hesitate to contact our office, we will gladly be of assistance to you!!
Information about VASTGOEDBELASTING / GRONDBELASTING (property tax)
Vastgoedbelasting (property tax) is levied annually from those (private persons and legal entities) who on January 1st own real estate. For land that is leased long term (erfpacht), the Vastgoedbelasting is levied
from the leaseholder of the land. Vastgoedbelasting does not apply for the value of:
• the “own home”: the home is the permanent residence of an inhabitant of the Dutch Caribbean
• real estate belonging to the business assets of an IB company (for example a sole proprietorship)
The Island Territory may levy GRONDBELASTING (property tax) over the value of the “own home”. In addition to that, an exemption of the Vastgoedbelasting is applicable for amongst others:
• undeveloped land which is owned by an inhabitant of the Dutch Caribbean.
• the first USD 50.000 of the value of a second home, owned by private persons.
What does this mean in practice?
That the Vastgoedbelasting is applicable for:
• owners of second homes
• owners of real estate which is rented out
• entities established on the Dutch Caribbean owning real estate
• entities established outside of the Netherlands owning real estate in the Dutch Caribbean
• non-inhabitants owning land in the Dutch Caribbean
What is vastgoedbelasting levied on?
Vastgoedbelasting is levied on income from real estate. The income is determined on 4% of the value in the economic market of that real estate. The tax is 20% on these proceeds of 4%. The payable tax is dependent on the value of the immovable good. The value is determined by the inspector for the period of five years. If the value changes within this period as a result of a reconstruction, expansion or demolition, the inspector can determine the value again in between. As of January 1st, 2013; increased value of the property as a result of investments is exempted for the first 5 years. The payable tax is 0.8% of the value annually.
You own real estate with a value of USD 200,000. You pay 0.8% x USD 200,000 =/= USD 1.600 annually. In case there is a second home with a private person as an owner, the first USD 50,000 value will be exempted. In this example then taxes are calculated on USD 150,000 being USD 1,200 (0.8% x USD 150,000).
The Island Territory is entitled to the levying of surtax (opcenten) in addition to the Vastgoedbelasting. The Island Territory Bonaire levies a surtax of 15%. The amount of surtax is separately mentioned on the assessment of the Vastgoedbelasting and is calculated over the amount of the Vastgoedbelasting assessment. In the example above the assessment for the Vastgoedbelasting is USD 1,200 and the surtax is USD 180 making the total payable tax USD 1,380 annually.
If a property is subject to Vastgoedbelasting, you do not also pay Grondbelasting for it.
Please also visit the website of the Rijksdienst Caribisch Nederland - Bonaire for more information regarding taxes but also for information about immigration and much more! www.rijksdienstcn.com/bonaire