Buying property in Curacao
Buying property in Curacao is one of the best steps you will ever take. But before taking this step, you have to be informed and know the basic steps. It’s important that you are aware of all the terms and conditions, so you won’t have any surprises at the end.
Looking back on all the properties we have sold, we have learned one thing. Inform and tell your customers everything that he/she needs to know before purchasing property in Curacao. It’s not a difficult process, but make sure you have somebody on the island that can advise you in every step you take I’m not sure if you are familiar with buying real estate on Curacao so I will tell you a little about the purchase process:
Transfer Tax and Notary fee in Curacao
Upon buying real estate in Curacao the taxes and fees are always the same: 4% transfer tax and approx. 1-2% notary fee. The notary is a Civil Law Notary, who is appointed by the Queen of the Kingdom of the Netherlands so not to be confused with a regular notary. The notaries, even though they are paid by the buyer, are an objective party that handles the transaction. We do not use lawyers unless a seller or buyers wishes to use one as their adviser. In all the years I’ve been selling real estate on the island, I’ve only seen that happen twice.
Property Tax in Curacao
Once you become an owner of a property on Curacao you pay a yearly property tax. This tax is has a progressive rate starting at 0,4% on the first US$ 197.000, the amount of value between $ 197.000 and $ 421.000 the tax is 0,5% and the amount above $ 421.000 the tax is 0,6%.
Some properties in Curacao are located in a touristic or government owned area, so the ground is actually leased. If the ground is leased, besides the yearly property tax, you also pay a yearly Lease for the land. This lease is depended on the m2 price per year for the ground area. Usually it’s not a high amount.
Membership fee in Curacao
If you buy property on a resort or apartment complex, than usually you pay a resort or membership fee to the society of owners. Depending on what resort or complex you live the fees are stated in the articles of association. The articles also include all rules and regulations of the resort or complex.
That covers the items on the purchase, taxes, lease and membership fee in Curacao.
Foreigners buying property in Curacao
There are no restrictions for foreigners buying property in Curaçao. Once you decided to come to this beautiful island and got your residence permit you can decide how you want to go about to own your own property.
New Investment policy in Curacao
As has been confirmed by Minister Nelson Navarro, a new policy regulating permits granted to investors will be effective as of October 1, 2014. This law is an addition to existing admissions policies. Wealthy investors who made a business investment or are planning to make a business investment in the amount Nafl 500,000 or more will be granted a residence permit valid for 3 years, a period which will be prolonged if conditions do not change. An investor will receive a residence permit valid for 5 years when investing Nafl 750,000 and an indefinite period when the investment amounts to Nafl 1,500,000 or more. Some restrictions to this policy do remain as costs for obtaining the residence permit have to be paid and a health insurance policy is obligatory. With the exception of foreigners mentioned in article 11 of the ‘’Landsverordening Toelating en Uitzetting’’, a security must be paid in the amount according to each respective nationality. In case of family reunification a temporary permit may be considered after a permit is granted to the investor. Wealthy investors who already possess a temporary permit can make an appeal to this new “Investor permit 2014”.
This will cover most of the information about buying property in Curacao. The best advice what I can give you is find a good real estate agent that can help, advice and recommend all the options. Property can be your most valuable asset, so make sure you take the right steps before you start purchasing.
Good luck on your journey and hopefully I can be at your service.
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