The Tax Plan for the Caribbean Netherlands (“BES Islands” or “Bonaire, Sint Eustatius and Saba”) 2024, also known as "Belastingplan BES eilanden 2024", brings about a new requirement regarding real estate tax.
Share this article
Share this article
According to this plan, individuals or entities are now obligated to report the acquisition of real estate or the enjoyment thereof, as well as any alterations made to the property, such as through construction or renovation. This reporting obligation aims to enhance transparency and compliance in the realm of real estate taxation on the BES Islands.
Reporting obligation for real estate tax purposes
According to the BES Tax Act, a reporting obligation for real estate tax has been introduced in three different scenarios. The reporting obligation applies in the following scenarios:
1. For those who, at any time, acquire real property by way of ownership, possession, or any other limited right of real property.
2. For those who, at any time, have real property by way of ownership, possession, or any other limited right, and changes have occurred concerning that real property. These changes include construction, renovation, improvement, demolition, or destruction of real property.
3. For those who, at the beginning of a calendar year, have real property by way of ownership, possession, or any other limited right, but have not received a real estate tax assessment in the subsequent year.
Notification Period
The period within which the notification must be made varies. For situations 1 and 2, as mentioned above, the deadline is four months after acquiring the real property or four months after a change in the real property has occurred.
For those who own real property or have another limited right and have not received a real estate tax assessment, the four-month period begins after the calendar year following the year for which no assessment has been received has ended.
Representative
In case multiple individuals or entities have the real property by way of ownership, possession, or limited right, it is permitted for one of them to make or have a notification made on behalf of all those individuals or entities.
Content of the Notification
The notification must include, at least, the following information:
• The name and address of the individuals or entities. In case the individuals or entities having the real property on the BES Islands reside or are established, respectively, a fiscal identification number of those individuals or entities;
• The date on which the ownership, possession, or limited right of the real property commences;
• The right under which having the real property exists;
• The address of the real property, and
• An indicative value of the real property or an indication of the change in value that has occurred due to a change in the real property.
Penalty
If an assessment is not determined or is determined to be too low because the reporting obligation is not met on time, the inspector may impose an administrative penalty simultaneously with determining the assessment. This penalty can amount to a maximum of 100 percent of the assessment amount.
Key Contact
Vivian Pieters