Buying a House on Bonaire is not much different as buying a home in the Netherlands. Also, the procedure followed is pretty much the same. When you have found a suitable house together with your broker, a purchase deed is drawn up. When the deed is signed by both parties, the buyer puts 10% of the purchase price (within 10 days) into an escrow account of the notary. This sum remains there until the purchase deed passes. The date of the passing of the purchasing deed is determined in consultation between the buyer and the seller. Once the purchase deed has passed, the property will be signed in the real estate registry at the land registry (called ‘Kadaster”).
In the end, what are the costs of buying a House on Bonaire?
Notary fees, which are approximately 2 to 3% of the purchase price
Transfer tax, which is approximately 5% of the purchase price
Registration of the property at the land registry: This begins with $265. The additional costs will vary depending on the type of deed that needs to be closed. See an overview here: http://kadaster.otidservers.com/images/DOCS/TarievenOR.pdf
Ground lease (if applicable) see explanation further below
- Annual land tax: 0.345% of the value of the House for a 1st House/Residence and 0.805% for a 2nd House (the 'value' is set for a period of 5 years)
Here follows a brief explanation about the difference between freehold land and leased land
• Freehold land is land owned by private individuals.
• Long lease land is land owned by the Government and is 'rented out'.
Long lease is granted for a period of 60 years and can be extended with 20 or 40 years.
For long lease land you must be an official citizen of Bonaire (you need a ‘sedula”), the fee for long lease land varies but is approximately around the US$ 2 per square meter per year.
Useful links when you you're going to delve into the cost of buying a home: