Investing in real estate in Curacao: how to get the most out of your investment

Did you know that real estate prices in Curacao have increased by an average of 5% per year in recent years? In addition to being a wonderful place to live or spend your vacation, real estate in Curacao can also be financially attractive. Whether you are looking for a vacation home or a stable source of rental income, real estate in Curacao offers plenty of opportunities. But where do you start? And what should you pay attention to before making a decision?

Why invest in Curacao?

The tourism sector is growing, the economy is stable and the demand for rental properties remains high, making real estate a smart choice, both short and long term.

In addition, the island offers tax benefits for foreign buyers. Consider regulations such as the Penshonado status, which provides retirees with attractive tax rates. With the right strategy, an investment in Curacao real estate can not only yield a return, but also a place in the sun.

What should you pay attention to?

1. Choosing the right location

The location largely determines the success of your investment. Busy tourist areas such as Jan Thiel and Blue Bay attract many holidaymakers and offer stable rental income. Do you prefer a quiet environment? Then areas such as Grote Berg or Coral Estate may be more suitable.

Also think about your goals. Do you want to enjoy your home regularly? Or is renting it out the main reason? In the latter case, a location close to the beach or a popular neighborhood is often a smart choice.

2. Regulations and taxes

When buying real estate, there is more to consider than just the price of the house. It is important to be well informed about local laws and tax regulations. For example, not all homes may simply be rented out.

When renting, you pay income tax, and there are some possible deductions. Maintenance costs, for example, are deductible, but only up to 2% of the WOZ value (land tax value) of the home, with a maximum of Nafl. 3,000 per year. This means that the fiscal benefits are limited. That is why it is wise to engage a local expert who can help you with the legal and fiscal aspects, so that you do not encounter any surprises.

3. Financing and additional costs

In addition to the purchase price, there are additional costs such as transfer tax, notary costs and possible renovations. If you need a mortgage, it is good to know that Curacao banks often have stricter requirements for foreign buyers. Non-residents usually have to finance at least 30% of the purchase price with their own resources, which means that a loan is only possible up to 70% of the home value.

Make a realistic budget in advance and take into account additional costs such as insurance, management and maintenance, especially if you are going to rent out the property. This way you avoid surprises later.

Think about the right structure

You can buy real estate in Curacao privately, but sometimes another structure is more advantageous. A Private Limited Company (BV) or a Private Foundation (SPF) can offer tax advantages and better protection of your investment. This depends on your situation and future plans. A financial advisor can help you make the best choice.

Ready to take the plunge?

Investing in Curacao can be a great opportunity, if you prepare yourself well. We are happy to help you every step of the way. We know the market inside and out and make sure you find your dream home or investment with confidence. Contact us and find out how we can guide you!