TAXATION OF REAL PROPERTY IN THE NETHERLANDS ANTILLES

Transfer tax and ground tax

According to the Netherlands Antilles Transfer Tax Ordinance (‘Overdrachtsbelastingverordening 1908’), transfer tax is in general levied from deeds and/or judgments of transfer of real estate (property) which are situated within the Netherlands Antilles. Also the creation or ceding of a right in rem, for example a long leasehold (‘erfpachtsrecht’), is being taxed with transfer tax. The transfer tax rate is 4% of the value mentioned in the deed with as minimum value the registry value (‘leggerwaarde’) as valued in accordance with the Netherlands Antilles National Ordinance Ground Tax (‘Landsverordening Grondbelasting’).

According to the latter Ordinance, ground tax is levied from properties situated within the Netherlands Antilles. The person that owns the property or has a right in rem on the property is subject to ground tax. The tax rate is 0.3% of the value registered in a so called ‘legger’. This value is used for 5 subsequent years unless essential changes take place.

Karel Frielink
Attorney (Lawyer) / Partner

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