Investing in real estate on Curaçao

What should you take into account if you want to invest in a property on the island? What are the advantages for you as an investor? What are the special features? Why is an investment attractive? In this BR Insights, we would like to highlight a number of important issues for you.

Investing in real estate on Curaçao offers various opportunities. Curaçao is the largest island in the former Netherlands Antilles and is equipped with all possible facilities, so if you want to rent out the property, there are plenty of opportunities to attract tourists.

The Curaçao government aims to encourage investors in Curaçao to invest in real estate and businesses, with the goal of stimulating the economy. This can be done through private ownership and regular asset management, but also through commercial exploitation.

There are various ways to invest on the island; there are several exclusive villas available on Curaçao. You can also consider other options, such as an apartment or penthouse, a villa at a resort, or a B&B. Another attractive segment is historic country houses.

These country houses are often monumental, located on extensive private grounds, and offer unique opportunities for exclusive (tourist) purposes. Investments in this segment range from a few hundred thousand dollars to estates worth tens of millions.

Yes, as an investor, you need a permit. You apply for the High Net Worth Investor permit so that you can stay on the island for longer than 30 days, otherwise you will fall under the ‘tourist’ category. As the government encourages investment in the island, it is possible to apply for a long-stay permit (minimum 3 years). There are conditions attached: your investment must create extra jobs, bring in foreign money, and/or stimulate economic development on the island.

If you have capital and decide to invest in real estate, there are various investments you can make.

On the island of Curaçao, business investments are divided into three levels, starting at 500,000 XCG (Caribbean guilders), followed by 750,000 and 1,500,000 XCG (Caribbean guilders). The duration of the permit depends on the amount of the investment.

As an investor in Curaçao, you can make a business investment in real estate or shares in a company, with amounts equal to or greater than the above amounts.

There are three permits you can obtain. The first permit is granted for an investment of at least 500,000 Caribbean guilders, entitling you to a 3-year residence permit. If circumstances remain unchanged, the permit will be renewed.

If you invest at least 750,000 Caribbean guilders, you will be eligible for a 5-year residence permit, which will also be renewed if circumstances remain the same.

With a minimum investment of 1,500,000 Caribbean guilders, you are eligible for a residence permit for an indefinite period. The permit no longer needs to be renewed, but you must have sufficient financial resources and private health insurance.

Since we focus on the high-end market, our clients do not always need to take out a mortgage. If you do need a mortgage, it is important to know that the mortgage rules on the island differ from Dutch regulations. We therefore recommend that you consult a reliable mortgage lender in Curaçao. Make sure you are well informed about the options available.

Beforehand, it is important that you are aware of the local regulations regarding permits. Every construction project must comply with specific building regulations and standards enforced by the local government.

Before submitting an application to the Curaçao government, you are required to pay a one-time fee and administrative charges per permit. The amount you have to pay depends on the investment.

• For a business investment of XCG 500,000 or more, you pay XCG 1,865.
• For a business investment of XCG 750,000 or more, you pay XCG 3,095.
• For a business investment of XCG 1,500,000 or more, you pay XCG 6,170.

You can find more information on the website of the Curaçao Ministry of Justice; on this page, you can also find the actual application form for investors.

Once you have submitted your application, the Admission Organization must make a decision on your request within 4 months. You must wait abroad for the decision. Once the decision has been made, it will be emailed to you.

• Ensure that you have the property rights thoroughly investigated. Check the title deed at the Land Registry (the public register of real estate).
• The Land Registry registers all real estate on Curaçao. Check the cadastral data to ensure that the seller is the rightful owner. Also check that there are no mortgages or other restrictions on the property.
• When we take care of the purchase of your exclusive home, we will draw up the purchase agreement, check all legal matters, and transfer the ownership.
• Keep in mind the transfer tax (currently usually a percentage of the purchase price) that you have to pay when purchasing real estate. In addition to the transfer tax, there are also notary fees associated with the transfer.
• Check the zoning plan to ensure that the intended use of the property is permitted. For example, if you want to rent out a property to tourists, the zoning plan must allow this. If you are buying an apartment or villa in a resort, consult the resort’s regulations, as they may have their own rules (homeowners’ association).
• If you plan to build or renovate, make sure you apply for and obtain the necessary building permits. There may already be a building permit, which automatically becomes your property when you sell the property.

Investing in Curaçao means not only benefiting from tax advantages and a well-developed business and financial services sector, but also from a legal system that closely resembles the Dutch system.

The competitive aspect also lies in the excellent infrastructure of the seaport and airport, the extensive investments in telecommunications, and the modern legislation for e-commerce and economic zones. Curaçao also offers good opportunities for creative investors who want to exploit untapped potential in this young economy.

In terms of economic policy, the government focuses on stimulating productive sectors and improving the conditions to achieve this. Within these sectors, specific focus areas have been identified that offer Dutch entrepreneurs real market opportunities and advantages.

Would you like to rent out your property on the island? Then you will owe income tax to the Curaçao government, but you do not have to pay this on the total amount. You pay income tax on 65% of the rental income in Curaçao. The other 35% is a notional cost deduction, where the mortgage interest is deductible. If you make a profit on the rental, this is untaxed.

Have you decided not to rent out your villa, B&B, or country house and would you like to emigrate to Curaçao yourself? Read all about emigrating to the island here.

At Burbach Roycroft, you will find exclusive, luxury homes in the high-end segment. View our exclusive listings here and schedule a viewing via the listing page: who knows, you may soon be investing in your dream villa in Blue Bay, Vista Royal, Seru Boca, or Jan Thiel.