Short vs Long-term rentals: Which is Smarter on Curacao?

by Pamela Núñez on March 12, 2025

Curacao, with its beautiful beaches and vibrant culture, attracts tourists for short-term rentals as well as those looking for long-term stays. For property owners, this presents an opportunity to rent out their properties for a short term through platforms such as Airbnb or through long-term rentals. But which option is best financially and practically? In this blog from Moret Real Estate, we dive deeper into the pros and cons of both rental strategies in Curacao.

Tax implications

A crucial aspect when choosing between short-term and long-term rentals is the tax obligations. In Curaçao, short-term rentals, such as through Airbnb, are subject to a 7% sales tax (OB). This tax applies when a house, apartment or room is rented for less than 90 days. If a house, apartment or room is rented out between 90 days and a year, 6% OB must be paid. In contrast, long-term rentals, with a minimum rental period of one year, are exempt from OB. This means that landlords do not have to remit sales tax to the tax authorities for long term rentals.

Income tax

In addition to sales tax, landlords must also consider income tax. In Curaçao, 65% of rental income is considered taxable income. This percentage remains the same regardless of whether the rental is short-term or long-term. Landlords may deduct 35% of rental income as expenses for items such as maintenance, insurance and brokerage fees, without the need for receipts. In addition, specific costs such as expenses for water, electricity or garden maintenance, which are normally paid by the tenant, can be deducted from the rental income. 

Practical Considerations

In addition to tax considerations, there are practical considerations when choosing between Airbnb and long-term rentals:

• Management and Maintenance: Short-term rentals require regular management, such as checking guests in and out and regular cleaning. Long-term rentals, on the other hand, offer more stability and less regular maintenance.
• Income stream: Airbnb can generate higher monthly income, especially during the peak season. However, this income can fluctuate. Long-term rentals offer a stable and predictable source of income.
• Legal Regulations: It is essential to be aware of local laws and regulations regarding rentals. Some areas may have specific restrictions on short-term rentals.

Conclusion

The choice between Airbnb and long-term rentals in Curacao depends on individual preferences and goals. For property owners looking for stable income and less management, long-term rentals offer tax advantages, such as exemption from OB and less maintenance duties. On the other hand, short-term rentals through platforms such as Airbnb can be more profitable, but they also involve more responsibility and variable income. Regardless of the choice, it is advisable to do thorough research and seek professional advice, if necessary, to determine the best rental strategy.

Regardless of your choice, Moret Real Estate is ready to help you find the ideal property in Curaçao. Whether you are looking to invest in short term rentals or long term rentals, we are happy to guide you through every step of the process. Contact us for expert advice and guidance on your real estate choices.