Buying real estate on Curacao

by Aida Moret on March 2, 2020

First, it is important to know that there are no restrictions for buying real estate on Curacao. In this blog you will learn everything about buying real estate on Curacao.

After signing the purchase agreement, a down payment of 10% of the property value must be made through a third-party account to the notary appointed by the buyer. Ownership is normally transferred within 6 to 8 weeks. Once everything is agreed upon, the final payment should be arranged by the buyer. Transfer tax in Curaçao is approximately 4%. Should circumstances, such as not being able to obtain a mortgage, prevent the purchase of the property from going through, the aforementioned down payment will be refunded.

Banks usually grant about 70% of the total purchase price, depending on the buyer’s financial situation. Banks may grant a lower percentage to foreigners.

Annual property taxes range from 0.4% to 0.6%, depending on the property value.

The buyer must also pay the cost of the appraisal report. The bank where the mortgage is granted informs the buyer with a list of suitable appraisal firms. Additional fees will be charged for these and other possible services provided by the bank.

Because of the above factors, the buyer will end up at about 6 to 7% above the asking price.

The seller of the property pays the brokerage fee to the real estate agent.

Property rentals:

For long-term rentals, a compensation value of 1 month’s rent should be paid to the broker by the property owner. All payments are exclusive of 6% tax.

When a property is bought or rented on resort grounds, it is common to be charged additional monthly fees for cleaning common areas, garden and pool maintenance, etc.