Taxes on the purchase and possession of property

Taxes on the purchase and possession of property

When purchasing / owning real estate will face one of the following taxes:

-Transfer tax: As of January 1, 2014 there will be a change in the transfer tax, which is now 4% of the purchase price of the property, which must be paid on the deed at the notary.

-The most important changes is the introduction of a progressive tax rate and the fact that it will no longer be possible to pay in four installments.

Property tax rates from 2014

The proceeds from personal property shall not be considered taxable income. Costs for maintenance and financing of their own home are up to Nafl 3000, – deductible unless the property is classified as a monument. Interest on a mortgage debt of private property is deductible up to a maximum amount of ANG 27,500 per year. Premiums for fire insurance deductible. For other private property that is leased, the taxable income is set at 65% of rental income. Costs for other private property are not deductible except for the cost of financing the property. However, this deduction is only applicable to the amount of the declared rental income.

Income from capital

When individuals and households, refers to the sum of income from financial assets, income from property and income from other assets, less interest paid.

To income from financial assets includes interest received on bank deposits, income from bonds and dividends. When it comes to real estate income from house and other income from property.

Proceeds from shares as dividends and interest on loans, savings bonds are taxed. For assets located in a foreign investment company or a Curacao-based NABV (Dutch Antilles decided Venootschap) for which the exempt status is obtained included a fictitious rendement as income equal to 4% of its value in the course of trade of the shares in that partnership.

deductible expenses

The law offers the possibility bepaalde bring personal and extraordinary expenses deducted from income. Some of these items are deductible to the extent they override a certain threshold, while other expenses are deductible up to certain limits. The deductible items include interest on debts, medical expenses, maintenance costs for close relatives and cost study of children or the person himself.

Non-deductible expenses

Some costs that may be directly related to the revenues enjoyed by a person excluded from the deduction. This includes the cost of a study or home office, charges for telephone and Internet access and clothing (excluding working clothes), costs of vessels used for representative purposes, certain costs associated with attending conferences, seminars and the like.