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Information

A basic summary on

  1. Buying property / taxes
  2. Investors’ permits
  3. Residential permits
  4. Penshonado arrangement
  5. Stichting Particulier Fonds (Private Foundation)
  6. SD-IRA (USA residents only)
  7. Preferred suppliers (to be completed)


*** For most detailed, accurate & recent information contact tax advisor, bank, Immigration ***

(No rights may be derived from the information provided in this (future) publication and no liability is accepted for incorrect and/or outdated information, within the limits of Curaçao law.)

 

1. Buying property / taxes  

General information

First of all, before buying property on Curaçao, we often recommend an official property appraisal.

Regarding the buying process it is important to know whether you decide to apply for a local mortgage, since the mortgage application process is a bit more extensive for non-residents and takes time. Sometimes the seller prefers a pre-approval from the bank before the bid or the purchase agreement.

Once there is agreement on a price, we will make a copy of your passport and verify your home address. The purchase agreement will then be provided to you. The buyer, provided he/she is a private person, has the right to annul the purchase within 3 days after signing the agreement, without explanation.

Buyers make payment in escrow of notary

To solidify your intent to buy, a deposit on the property is required, usually 10% of the purchase price. This payment is always made to the notary’s escrow account.

If applicable: Buyers apply for a mortgage

This step is streamlined if you’ve already been preapproved for a loan (which is a smart thing to do because it takes time). If not, you’ll begin the loan application process now. A time span indication is approx. six weeks from application for a local mortgage, and a minimum of 30% of private capital for residents, up to 50% for non-residents.

Closing time arrives

Once financing is set and contingencies are removed, all parties sign the deed of transfer at the notary’s office, and the transaction closes. If parties are not on the island for the signing, they can give power of attorney to the notary’s office or the broker. A time span indication is approx. one month for the Notary for doing their research, calculated from the date of receipt of the dossier to the actual transfer date.

Ownership and mortgages are registered by law in the cadastre, the Land Registry Office (“Kadaster“) to protect legal certainty on property and rights.

 Applicable taxes and fees:

  • Transfer tax: 4 % of purchase price – not for “SPF” (Private Foundation)
  • Registry fees & stamps:

o transfer of property (average Naf 910),
o mortgage deeds (minimum of Naf 725 + an additional Naf 100 per Naf 100.000 above Naf 200.000 of Founder value, this is maximized however)

  • Seal of debt (in case of mortgage): 2 ‰ of purchase price
  • Annual property tax (land & building(s) based on “Founder value”:

o    0,04 % < 350.000 Naf
o    0,05 % >< 350.000 – 750.000 Naf
o    0,06 % > 750.000 Naf

(in case of leasehold land different rules apply, and only for building(s))

Notarial fees for transfers of property and mortgage deeds are fixed rates (excl. 6 % VAT) determined by the Common Court of Justice.

See also: https://www.realestate-curacao.com/en/information/buy-a-home-curacao-house.html
and: https://www.burgersfungaloi.com/onroerend-goed/koop-en-overdracht-van-onroerende-zaken/ (in Dutch)

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2. Investors’ permit

Applying for a residence permit as an investor, length of stay and invested amount are connected; the higher the investment the longer the period the permit may be granted:

o Investment > ANG 500.000 -> permit for 3 years
o Investment > ANG 750.000 -> permit for 5 years
o Investment > ANG 1.500.000 -> indefinite permit

Investors’ permit costs are between ANG 1.865 up to ANG 6.170 and can be renewed for the same period as long as circumstances have remained unchanged.

An investor’s permit is not a work permit! For questions about opening (and working in) your own business on the Island, always check the applicable regulations with the Immigration Dept.

Please contact the Immigration Dept. and/or Dos Mundos for the latest and most accurate information:

Immigration Dept. “Toelatingsorganisatie”
Investors’ permit (in Dutch and Papiamentu)

Address: Prinsenstraat 90 (close to MacDonalds and Pietermaai Parking) – Punda – Willemstad
Phone: (+5999) 7332000
Email: info@immigrationcur.org
(opening hours mon-thur 08.00 – 15.00 hrs, fri 08.00 – 14.00 hrs)

Dos Mundos immigration/emigration services:

Address: Saliña Galleries A-101 – Saliña – Willemstad
Phone: (+5999) 7872323
Email : info@dosmundos.cw

PDF file: Investor’s permit Request form (June 2018)

Required documents accompanying above mentioned Investor’s permit Request form:

  1. Fully filled out & signed Investor’s permit Request form;
  2. Proof of payment legal fees & dues per applicant, per time period requested, from Girobank;
  3. Fully filled out, motivated & signed (temporary) residency request form;
  4. Copy valid passport;
  5. Passport photos (4x) conform passport standards (size 35mm x 45mm);
  6. Original birth certificate for review (< 1 yr old);
  7. Original Certificate of Good Conduct issued at last place of residence (< 3 months);
  8. Proof of valid medical insurance;
  9. Bank statement demonstrating the investment made.

 

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3. Residential permit (always check accuracy with Immigration Dept.)

  • Dutch and US citizens are allowed to stay on the Island in total max. 6 months per calendar year without applying for a residential permit.
  • EU-citizens (e.g. Germans, Austrians, Belgians etc.) are allowed to stay on the Island on a tourist visum max. 3 months per calendar year
  • Others (e.g. Colombians, Ukrainians etc.) are allowed to stay on the Island on a tourist visum max. 1 month per calendar year

Information from our Government in Dutch:
http://www.gobiernu.cw/nl/justitie/sector-rechtshandhaving-openbare-orde-en-veiligheid/toelatingsorganisatie-curacao/

http://www.gobiernu.cw/nl/toelatingsorganisatie-curacao/formulieren/van-rechtswege-verklaring/

Dutch citizens can apply for their “Verklaring van Rechtswege” here:
https://www.immigrationcur.org/MPS/Klantenportaal/Toelatingsorganisatie_NL?init=true
(Fill out the “Toelatingscheck” before starting the application process.)

Please contact the Immigration Dept. and/or Dos Mundos for the latest and most accurate information:

Immigration Dept. “Toelatingsorganisatie”

Address: Prinsenstraat 90 (close to MacDonalds and Pietermaai Parking) – Punda – Willemstad
Phone: (+5999) 7332000
Email: info@immigrationcur.org
(opening hours mon-thur 08.00 – 15.00 hrs, fri 08.00 – 14.00 hrs)

Dos Mundos immigration/emigration services:

Address: Saliña Galleries A-101 – Saliña – Willemstad
Phone: (+5999) 7872323
Email : info@dosmundos.cw

 

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4. Penshonado arrangement

 

In (ultra) short: are you over 50 years old and does paying (roughly) 10% tax on Curaçao over your “world income” sound appealing to you? Pls seek advice from a tax advisor if this could be interesting for you. You can contact me for details of recommended professionals. In Dutch a brief excerpt from PricewaterHouse Coopers Curaçao (translation coming soon).
Residency is obligatory, you must be able to prove really living on the Island.

 

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5. Stichting Particulier Fonds (Private Foundation)

In Dutch an excerpt from PricewaterHouse Coopers Curaçao (translation coming soon).

When buying property that is owned by a private foundation, the foundation itself can be taken over, thus avoiding transfer tax.

 

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6. Utilizing self-directed IRA’s for tax-free real estate investments (USA-residents only)

One of the most under-utilized, but incredibly advantageous, investment strategies for real estate is using a self-directed individual retirement account (SDIRA). An SDIRA is an individual retirement account (IRA) in which the investor is in charge of making all the investment decisions. A SDIRA differs from a traditionally managed IRA in a way that you, the IRA-holder, have more control over how your funds are invested.

Investing in real estate in Curaçao using a SDIRA involves three simple steps:

1. Identify your investment and request funds
Start by contacting a SDIRA custodian and they will help you release the funds and set up your account.
Then, identify the property/investment you wish to purchase, and gather all key documents related to the sale and transfer of the investment.
All documents related to the investment must be titled in the name of your IRA, not in your name.

2. Process the investment
The IRA custodian you choose will review and process your forms. If everything is correct and approved, the funds will be sent from your IRA for the investment based on your specifications.

3. Manage and sell the investment
Once your IRA owns the investment, all expenses and profits related to the investment must come from and back to the IRA.

When you are ready, instruct your custodian to sell the investment on behalf of your IRA. Funds from the sale of the investment return to your SDIRA tax-free, where you can continue to re-invest them as you see fit.

Utilizing SDIRA’s for tax-free real estate investments is just one of many topics that your RE/MAX BonBini agent can assist you with.

If you are looking for the perfect property in Curaçao and want to learn how to truly maximize your investment, do contact me.

 

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7. Preferred Suppliers (to be completed)

Electrical appliances: Wimco, 10% discount, tel. +5999 4611833, address: Kaminda Saliña 

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