Real Estate

Many people, both residents and foreigners, are investing in real estate property situated in the Caribbean territories of the Kingdom of the Netherlands. Additionally, a real estate property might be a business asset or it might be used for both private and business purposes. Another common situation concerns resorts that are divided into timeshares.

Various taxes come into play in connection with real estate property. Such as turnover tax/sales tax, tourist levy, environmental levy, real estate transfer tax.  A legal transfer leads to a transfer tax liability. If the real estate property is used as a business asset, that transfer may also result in a personal income tax or profit tax levy. At the same time, though, possibilities exist for lowering the tax charge, for example using an addition to a provision for major repairs in the future or by adopting a shorter depreciation period, if sufficient justification can be put forward for doing so.