Latest Articles

2010-11-27 03:31:23

Taxes on Bonaire, Dutch Caribbean as of January 2011

TAXES ON BONAIRE AS OF JANUARY 1 2011 Since the dissolution of the Netherlands Antilles on 10 October 2010 (10-10-10), Bonaire became a public body of the Netherlands, together with the two other BES islands, St. Eustatius and Saba and the three islands are now referred to as special municipalities within the Dutch Kingdom. The Dutch House of Representatives approved the new tax regime for the BES islands on October 7th 2010. Together with Brandaris BV, accounting, taxes and consultancy, Keys Real Estate Bonaire made a selection of the most important changes. Please check back on a regular base, since we will keep updating the information pages when new information will be released. REAL PROPERTY TAX, LAND TAX AND SURTAX As of January 1 2011 property owners on Bonaire will either pay Real Property Tax (“vastgoedbelasting”) or Land Tax (“grondbelasting”). Land Tax will be paid by owners who use their property as their home. The calculated Land Tax per year will be 0.3% over the economic value of the lot and its building(s). 15% Island Surtax* (“eilandse opcenten”) will be added over the 0,3% making a total payable Land Tax per year of 0,345% over the economic value of the lot and its building(s). Real Property Tax needs to be paid for all properties not used by the owners as their home. The calculated Real Property Tax per year will be 1% over the economic value of the lot and its building(s). Island Surtax*: Unknown. Exception: Kunukus (farm land) owned by BES residents with an economic value of less then USD 50,000. *SURTAX The Bonairean government has the right to collect Surtax. For now we know that the Surtax for the Land Tax will we 15%, meaning 15% over the 0,3% as mentioned before making a total payable Land Tax of 0,345% over the economic value of the lot and its building(s). The possible Surtax over the Real Property Tax is not known yet. LONG LEASE LAND Please note: Property owners who have a home built on “Long Lease Land” (leased land) will remain paying the yearly lease plus the tax as mentioned before. The lease is mostly a low figure calculated per m2 per year. The figure is different per area. ECONOMIC VALUE The target is to calculate the economic values of all properties on Bonaire before May 2011. If property owners do not object against the value stated, taxes will be calculated over this value and will be fixed over a period of 5 years. TAX REPRESENTATIVES Non residential property owners will most likely need to designate a tax representative in the future. This representative will normally be the person who handles part of the finances for the owner, meaning either the rent collecting realtor, the home manager or an official tax agent. SHARED OWNERSHIPS In case a property is owned by more then 1 person, one of the owners will need to be designated as the person responsible for the tax payments. TRANSFER TAX As of January 1 2011 the transfer tax ("overdrachtsbelasting") on Bonaire will change from 4% to 5%. If properties are sold more then one time within 6 months, the transfer tax will only need to be paid once. ECONOMIC TRANSFERS Economic transfers of for example businesses or not built long lease lands will as of January 1 2011 most likely be seen as a service and therefore taxed at 8%. PROFIT TAX Profit Tax ("winstbelasting") will no longer exist on Bonaire as of January 1 2011. Companies on Bonaire not connected to the BES Islands will automatically need to pay the Dutch Corporation Tax. Please ask your tax advisor if you want to make sure your company is connected to the BES Islands. DISTRIBUTION TAX As of January 1 2011 the rate of the distribution tax (“opbrengsbelasting”) will be 5%. Foreign companies with real estate on the BES Islands are no subject to distribution tax. INCOME TAX As of January 1 2011 the income tax will be a flat rate of 30,4% up to USD 250.000 per year and a flat rate of 35,4% over USD 250.000 per year. TAX EXEMPTION BES Residents will have a tax exemption of USD 9,750 per person per year. INHERITANCE TAX Inheritance tax will no longer exist on Bonaire as of January 1 2011. IMPORT DUTY As of January 1 2011 import duties Bonaire will be nil. RENTAL INCOME As of January 1 2011 rental income will no longer be taxed as income tax. Property owners who rent their properties for longer terms to BES residents will only pay the Real Property Tax. Property owners who rent their properties to non residents and/or for shorter terms will either pay Tourist Tax (At this moment: USD 5,50 per day per person older then 13 years of age) or ABB (Use Tax: 8%). Please note: We expect that property owners who achieve a total rental income on all their properties within the BES of less then USD 20.000 per year will not be paying 8% ABB but may claim an exception. Reminder: The information stated on this page is only a selection of the most important tax changes on Bonaire communicated so far. As Keys Real Estate Bonaire we like to inform and advise our clients as good as possible. Therefore we will try to keep our information as up to date as possible. Please do check back in the future for any changes and/or more information and feel free to contact us with any questions on real estate taxes or property transfers on Bonaire.

Recent Posts

Next Videos

Related Post

Industry, Education

Negotiating Tip 114: Retreat Negotiations

March 29, 2019

Industry, Education

Negotiating Tip 113: Activating Our Opponent

March 28, 2019

Industry, Education

Negotiating Tip 112: Misconceptions

March 27, 2019

2020 Real Town The Real Estate Network