Published On: Mon, Dec 30th, 2013

From property tax to Land value tax starting in 2014

WillemstadWILLEMSTAD – Property tax will disappear in 2014. It will be replaced, on January 1, by the Land Value Tax (LVT). The purpose of this tax is the taxation of real estate properties.

Taxation takes place at the beginning of each year. The taxpayer is a person who, according to the land register, has a property by virtue of ownership, possession or restricted rights. The valuation takes place for a period of five years. Objection against the value is only possible in the first year of the five-year period.

Baker Tilly Curacao in the New Year Memorandum for Businesses:

“Please note that unlike the property tax, the LVT must be paid within two months from January 1 of each year.”

The property tax rate was in 2013 – so this year – 0.345 percent.

The rate of the LVT is higher and is also a progressive rating system. In 2014, the tax will be calculated in accordance with the following sliding scale:

  • For the first 350,000 guilders worth of property 0.4 percent;
  • From 350,000 to 750,000, the rate is 0.5 percent;
  • From 750,000 guilders is 0.6 percent.

If the value of the premises is for example 850,000, the tax is 4000, namely: 350,000 x 0.4% = 1.400; 400,000 x 0.5% = 2.000; 100,000 x 0.6% = 600, making it a total of 4,000.

This is according to the calculation of the tax advisors Arthur van Aalst, Wilco van Oosten and Suhena Neuman. For more information see the website:

bakertillycuracao.com

 

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