Global Property Guide

Financial Information for Residential Property Buyers


Netherlands Antilles rental income tax is high

March 30, 2011

INDIVIDUAL TAXATION

Non-residents are taxed on their income realized in the Netherlands Antilles. Married couples are taxed jointly, except on income from employment, business, and certain periodical payments.

INCOME TAX

There are four categories of income: (1) income from real estate, (2) income from movable capital, (3) business and employment income, and (4) rights on periodical payments. For each category of income, taxable income is computed by deducting income-generating expenses. The resulting taxable income from all sources is then aggregated and taxed at progressive rates.


INCOME TAX 2009

TAXABLE INCOME, ANG (US$) TAX RATE
Up to 25,514 (US$14,261) 10%
24,514 - 38,271 (US$21,392) 16% on band over US$14,261
37,271 - 53,154 (US$29,712) 21% on band over US$21,392
53,154 - 79,730 (US$44,567) 27% on band over US$29,712
79,730 - 112,685 (US$62,988) 32% on band over US$44,567
Over 112,685 (US$62,988) 38% on all income over US$62,988
Source: Global Property Guide

Surtax

The tax liability is increased by an island surtax which is 30% for CuraƧao and 25% for all other islands.

Netherlands Antilles apartments

RENTAL INCOME
Income derived by individuals from the leasing of immovable property is taxed at normal progressive rates. As of 1 January 2001, the taxable income is 65% of the gross income. Maintenance expenses and other income-generating expenses are not deductible because these expenses are accounted for in the standard deduction of 35% of the gross income. Interest and expenses for the acquisition and improvement of the property are deductible.

Income from immovable property includes not only rent and lease payments, but also income from second houses, which are not rented out.

CAPITAL GAINS
Capital gains from the sale of real property are not taxable in the Netherlands Antilles.


PROPERTY TAX


Ground Tax

Ground tax is levied on all real properties in Netherlands Antilles, payable by the owner. The tax base is the estimated fair market value of the property, which is computed as the average rental value multiplied by 12.5.

Bonaire and Curacao charge 0.3% ground tax. In addition to that, a 15% municipal surcharge is levied on the amount payable in Curacao. There are no property taxes in Saba, St. Eustatius, and Sint Maarten.

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