Real Estate Taxes in Curacao
There are no restrictions on private ownership of land or properties in Curacao.
When you purchase a home or lot in Curacao there are 2 types of taxes that are important to you.
A. The Property transfer tax which is paid only 1 time, when you transfer the deed of ownership of the property at the notary office
B. The Property ownership tax wich is paid each year as long as you are the owner of the property.
A. Property Transfer Tax (Overdrachtsbelasting) and notary costs
When a real estate property is transferred the notary must collect a transfer tax of 4% of the value of the property, which is in normal cases the purchase price.
When establishing a mortgage on real estate properties the notary must collect a two per mil tax ("schuldbriefzegel") on the capital amount of the mortgage. The Registry also charges for its services and registration. These charges are in average Naf. 910.00 for a real estate transfer, and at least NAf. 725.00 but not more than NAf. 3,000.00 for mortgages.
In order to compute the taxes, fees and other charges see the following link to the website of Notary Office Burgers & Fung A Loij, "Calculate Costs' . Here you can calculate all costs for for transfer of deeds and for mortgages.
When establishing a mortgage, the financial institutions will also require the debtor to enter into a life insurance agreement and a fire insurance, of which the first year will be collected through the notary. The financial institution may also charge some costs.
(source: Notary Burgers & Fung A Loy, Curacao)
B. The Ground Tax (onroerende zaak belasting)
As of January 1, 2014 property owners in Curacao are charged a progressive property tax / ground tax called 'onroerende zaak belasting'.
This tax is levied on real estate located in Curaçao at an annual rate of
0.4% tax paid on properties with a value up to 350,000 Netherlands Antillean Guilders (Naf.)
0.5 % tax for properties for the value between Naf. 350,000 and Naf. 750,000
0,6 % tax for all properties above Naf. 750,000
When you buy a real estate property, whether it is a house or a piece of land, the buyer has to reimburse to the seller the amount of ground tax and/or long lease, as the case may be, with regard to the remainder of the current year.
Should you have any further questions on real estate taxes in Curacao, please send an email to email@example.com