Tax Implications of Owning Property in Curaçao

Curaçao isn’t just beautiful—it’s also surprisingly tax-friendly. If you're considering purchasing a second home here, understanding the local tax landscape is essential to making informed decisions and optimizing your investment.

Property Transfer Tax

When you purchase real estate in Curaçao, a one-time property transfer tax applies. The current rate is 4% of the property value, based on the notarial deed. This is typically paid at closing and handled by the notary.

Annual Property Tax (OZB)

Curaçao levies an annual real estate tax between 0.3% and 0.6% of the assessed value of your property. This is relatively low compared to many countries and adds to the island's appeal for long-term ownership.

Rental Income Taxation

If you plan to rent out your property:

Rental income is subject to tax.

Occasional vacation rentals may be taxed differently than long-term leases.

Deductible expenses can include maintenance, insurance, and management fees.

Local tax advisors can help structure your rental activity for efficiency and compliance.

No Capital Gains Tax

One of the biggest financial advantages: Curaçao does not tax capital gains on the sale of privately owned real estate. If your property appreciates in value, you keep the profit—tax-free.

Inheritance and Gift Tax

Inheritance or gifting of property can trigger taxes depending on the relationship between parties. Planning ahead with a notary or estate planner is advisable, especially for international owners.

Foreign Tax Reporting

If you're a U.S. or Canadian citizen:

You may need to report your Curaçao property on your home country’s tax filings.

U.S. citizens must comply with FATCA and declare foreign rental income.

Canadian residents must disclose foreign property over CAD $100,000.

Cross-border tax advisors can help ensure compliance and optimize your global tax position.

Bonus: Tax Incentives for Retirees

Curaçao offers attractive programs for retirees and long-term residents, including flat-rate taxation and favorable treatment of foreign pensions. These benefits make the island even more attractive for those planning a permanent or semi-permanent move.

Make It Work for You

While Curaçao’s tax policies are favorable, smart planning makes them even better. Our team connects buyers with local legal and tax experts to guide you through every step of the purchase process.

Ready to make your Curaçao home a financially sound investment? Let’s talk.

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