Curaçao keeps gaining attention from international buyers; not only for its beaches, stable economy, and quality of life, but also because the island offers attractive tax advantages for homeowners and investors. Whether you're relocating, purchasing a second home, or building a rental portfolio, Curaçao’s fiscal climate can significantly improve your long-term returns.

Below is a clear breakdown of the most relevant incentives and why Curaçao continues to stand out in the Caribbean property market.

1. Annual Property Tax (OZB): Progressive, Transparent & Lower Than Many Countries

Curaçao applies an annual property tax known as Onroerende Zaak Belasting (OZB). 
While some older sources online claim Curaçao has “no annual property tax,” this is outdated. The reality is more nuanced:  Curaçao does have OZB, but the rates are relatively low compared to many international markets.

✔ OZB Tax Rates for Residential Properties (Progressive Brackets)

Based on market value (XCG)

Property value up to 350,000 
• Tax rate: 0.4% 
• Calculation: 0.4% of the full value

Property value from 350,001 to 750,000 
• Tax rate: 0.5% 
• Calculation: 
– XCG 1,400 (0.4% of first 350,000) + 
– 0.5% of the amount above 350,000

Property value above 750,000 
• Tax rate: 0.6% 
• Calculation: 
– XCG 3,400 (sum of previous brackets) + 
– 0.6% of the amount above 750,000

Key OZB Facts Buyers Should Know

Valuation Basis: 
The taxable value is the market value — essentially, what a third-party buyer would pay.

Valuation Cycle: 
Properties are officially revalued every five years. 
The current valuation period began January 1, 2024.

Tax Liability: 
Whoever owns the property on January 1st is liable for the entire year.

Payment Deadline: 
Assessments must be paid within two months of issuance.

Exemptions & Special Cases: 
Certain properties (churches, hospitals, government-owned assets) may be exempt. 
Leasehold land (erfpacht) does not pay OZB but is subject to an annual lease canon instead.

Bottom line: Curaçao’s OZB is clear, predictable, and still more affordable than annual property taxes in many countries, particularly the U.S., Canada, and parts of Europe.

2. No Capital Gains Tax on Property

If you sell your property later at a profit, Curaçao does not charge a capital gains tax for individuals.

For investors, this means:

• Higher net returns

• More flexibility when buying and flipping

• Better long-term appreciation strategy

It’s one of the biggest reasons international investors choose Curaçao over other islands like Aruba or St. Maarten.

3. Rental Income Tax in Curaçao: Clear Rules & Investor-Friendly Structure

Rental income in Curaçao is taxed based on actual rental earnings, not on the property’s cadastral or market value. The system is straightforward and, for many investors, more forgiving than other jurisdictions because of the built-in expense deduction.

✔ How Rental Income Is Taxed

1️⃣ Basis of Taxation 
All rental income is part of your personal income tax and is taxed according to Curaçao’s progressive individual income tax rates (9.75% to 46.5% for 2024).

2️⃣ Automatic 35% Expense Deduction (“Deemed Expenses”) 
Landlords automatically receive a 35% standard deduction from gross rental income to cover typical expenses such as:

• Maintenance

• Repairs

• Insurance

• Property management

• Small operational costs

No receipts are required. This simplifies reporting and often lowers the effective tax burden.

3️⃣ Taxable Portion 
After deducting the standard 35%, the remaining 65% of the gross rental income becomes your taxable income.

4️⃣ Additional Deductions Allowed 
On top of the 35% standard deduction, owners may also deduct:

• Mortgage interest

• Specific costs included in the rent (utilities, garden maintenance, etc.)

• Certain tenant-related charges if itemized separately

This can further reduce your taxable base, especially for financed properties.

✔ Sales Tax (O.B.) for Short-Term Rentals

Curaçao distinguishes clearly between short-term and long-term rentals for sales tax (O.B.) purposes.

Short-term rentals (less than 12 months to the same tenant): 
➡ 7% O.B. sales tax applies on the gross rental income 
➡ Must be reported and remitted monthly

This applies to most vacation rentals, Airbnbs, and tourist accommodations.

Long-term rentals (12 months or more to a tenant with a local sedula): 
➡ Exempt from the 7% O.B. sales tax

This distinction makes long-term renting administratively simpler, while short-term rentals require more active monthly reporting.

✔ Bottom Line for Investors

While Curaçao’s “deemed income” approach makes rental taxation predictable and streamlined, tax liability is still tied to the actual revenue your property generates;  not its market value. Combined with the 35% automatic deduction and additional deductible expenses, many investors find Curaçao’s rental taxation significantly more workable and profitable than in other countries.

4. Attractive Immigration Programs for Investors

Curaçao offers several residence permit options for homebuyers:

Investor’s Permit (Starting from XCG 550,000+)

Buyers who invest in eligible real estate can apply for a residence permit valid for:

• 3 years (550,000 – 1,000,000 XCG investment)

• 5 years (1,000,000+ XCG  investment)

This permit is renewable and allows you to live on the island year-round. It’s one of the most straightforward residency-by-investment routes in the Caribbean.

5. Inheritance & Gift Tax in Curaçao: Key Points for Property Owners

Curaçao has specific rules for inheritances and gifts, and it’s helpful for buyers to understand how these apply to real estate.

When does inheritance tax apply? 
Inheritance tax is only charged when the person who passed away was a Curaçao tax resident. 
If the deceased lived abroad but owned property on the island, inheritance tax does not apply — instead, the transfer is handled through regular transfer tax.

Exemptions 
Curaçao offers generous tax-free amounts:

• XCG 240,000 for a spouse or registered partner

• XCG 80,000 for children, grandchildren, parents, and parents-in-law

• XCG 8,000 for all others

For gifts, the annual exemptions are:

• XCG 20,000 for close family

• XCG 8,000 for others

Tax Rates 
After exemptions, Curaçao applies progressive rates:

• 2%–6% for direct family members

• Up to 24% for other beneficiaries

Why this matters for buyers 
For many foreign investors, an important advantage is that non-residents generally do not owe Curaçao inheritance tax on the property itself, making long-term planning more predictable and family-friendly.

6. Double Taxation Relief: What Actually Applies in Curaçao

Curaçao has a limited network of double taxation agreements, and many online sources overstate the coverage. Here’s the accurate overview for buyers and investors:

✔ The Netherlands

Curaçao has a comprehensive tax arrangement with the Netherlands called the Netherlands–Curaçao Tax Regulations (NCTR). 
This functions similarly to a full double taxation treaty and ensures that income is not taxed twice between the two jurisdictions. 
For Dutch buyers, this is the most relevant tax agreement.

✔ Latin America

Curaçao is gradually strengthening tax cooperation in the region. As of late 2024/early 2025:

• A new DTT with Suriname has been officially signed

• Curaçao is in exploratory discussions with Brazil

• No broad Latin-American treaty network is currently active

✔ Unilateral Relief

When no treaty applies, Curaçao offers unilateral provisions to help prevent double taxation. These measures can provide partial relief for investors with income from foreign sources.

7. Lower Transaction Costs Compared to Many Countries

Although buyers do pay transfer tax (4% – 6%), Curaçao avoids many of the high add-on costs charged in other jurisdictions. Closing costs typically include:

• Transfer tax

• Notary fees

• Land registry fees

In most cases, the total remains significantly lower than closing costs in North America or Europe.

8. Opportunities in Tax-Efficient Structures

Investors who purchase multiple properties or launch rental businesses may benefit from:

• Curaçao private foundations (Stichting Particulier Fonds – SPF)

• Free Zone incentives for export-focused businesses

• Special economic zones (SEZ)

These structures allow for optimized tax planning, asset protection, and long-term portfolio management.

Why Curaçao Continues to Attract International Buyers

Beyond tax benefits, Curaçao offers additional advantages that strengthen investment potential:

• A politically stable environment

• Direct flights from Europe, the U.S.,  Latin America and other Caribbean Islands

• Strong tourism numbers year-round

• A diverse property market: from luxury villas to new-development projects

• No hurricane season compared to most of the Caribbean

All of these factors create consistent demand, making Curaçao one of the strongest Caribbean markets for both lifestyle buyers and investors.

Thinking About Investing in Curaçao?

If you’re considering purchasing real estate on the island; whether for relocation, vacation rental income, or long-term investment, we’re here to guide you through the process with clear financial insights, ROI calculations, and personalized recommendations.

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