Buying real estate in Curaçao? These are the taxes and costs you shouldn't forget.

Anyone buying real estate in Curaçao faces various financial obligations. Besides the purchase price, there are additional costs such as transfer tax, notary fees, and possible investment structures for those who consider real estate as an investment. A clear understanding of these costs helps maintain realistic expectations and avoid surprises.

Taxes when buying real estate in Curacao

Transfer tax is a fixed component of every purchase. In Curaçao, this tax amounts to 4% of the purchase price. This percentage applies to most real estate and is calculated based on the market value of the property or plot. The tax is paid upon execution of the deed at the notary. No sales tax (OB) or VAT is levied on real estate purchases, which is an attractive advantage for many buyers.

Notary fees: legally established rate

Another point to keep in mind is that notaries in Curaçao charge a legally established fee for real estate transactions. Therefore, the fees do not vary from notary to notary. This fee is set by Curaçao law and can be found on the websites of local notaries, such as Fung A Loi & Samandar. In addition to drafting the deed of transfer, the notary also handles the registration of ownership and the payment of transfer tax.

Other costs when purchasing real estate

Besides the notary fees, there may be additional expenses, such as land registry fees, appraisals, or legal assistance. Those who work with a real estate agent pay a commission.

Tax opportunities for investors

For buyers who purchase real estate as an investment, there are specific tax options. In Curaçao, there are structures available where property ownership is held in a fund or company. This can be attractive for investors who want to optimize returns or diversify their holdings. More information about these options can be found at NaarCuracao.com, which provides extensive information on the tax benefits and regulations surrounding investing.

Annual charges and maintenance costs

Besides the one-time purchase costs, there are also annual expenses. Consider property tax (OZB), which is calculated based on the property's value. Rates can vary depending on the property type and location. In Curaçao, property tax is taxed at a progressive rate. This means the tax rate increases as the property's value increases. This system of tiers was introduced to prevent a small increase in value from immediately leading to a significantly higher tax bill.

Buyers should also consider maintenance, insurance, and possibly management costs if the property is a rental. Those who don't live in Curaçao permanently can hire a local management company to maintain the property and coordinate rentals.

Financial preparation and advice

When considering a purchase, it's wise to gain insight into all the costs beforehand. This creates a clear financial picture that aligns with the investment's purpose or dream home. Whether it's a seaside apartment or a hillside villa, financial preparation is just as important as choosing the right location.

Please contact us

Want to know more about the financial implications of purchasing real estate in Curaçao, or are you looking for help finding a suitable home? Contact Top Makelaar Curaçao for personalized advice and guidance every step of the way.