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 and so qualify as a free-choice asset. Another common situation concerns resorts that are divided into timeshares.
Various forms of taxation come into play in connection with real estate property. For example, the completion of new development is subject to sales tax (belasting op bedrijfsomzetten, ‘BBO’). Inherited real estate property may give rise to an inheritance tax assessment. 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. The Tax Partners at ATLAS will help you find your way out of this maze of tax rules.