How does the Property Tax work here on Curaçao?

by Aida Moret on March 13, 2024

The Property Tax is an annual tax imposed based on the value of real estate on Curaçao. This can include undeveloped land as well as built-up property such as a house or store.

For example, if you rent a house on land from a private owner, the owner of the land pays the property tax. But if you rent from the Curaçao government, you pay property tax based on the value of the building, not the land.

You are liable to pay property tax if you own real estate, own it, or have a limited right to it, such as ground lease or usufruct. If several people have a right to a property, one of them can file a tax return on behalf of the others.

The property tax is levied over five-year periods, with the tax determined at the beginning of each period based on the value of the property.

The rate of the property tax is progressive and varies depending on the value of the property. If you disagree with the assessed value, you can object to the tax authorities.

You must give arguments why you think the value is incorrect, and possibly provide evidence to support your position.

There are exemptions from the property tax for certain categories of property, such as churches, hospitals and sports grounds. If you become a property owner or something changes in the ownership situation, such as building a house, you must file a tax return with the IRS within two months.

Filing a tax return is informal but requires some essential information, such as your name, address, and the assessed value of the property.

If you fail to file a return or if it is incomplete or incorrect, the IRS may impose a penalty. This penalty can be up to 100% of the amount owed.

This is a summary of Curacao’s property tax regulations, based on local tax laws and procedures. For specific questions or current information, please contact the tax authorities or other appropriate authorities.