Until the end of 2015, 7% lodging tax (room tax) was collected by the Tourist Office of Curacao (CTB) when people rented a house or apartment for a short period of time to holidaymakers. However, this 7% accommodation tax has been replaced by 7% turnover tax as of 1 January 2016. Where previously the CTB in Curacao was charged with checking and collecting the lodging tax, this is now the responsibility of the Tax Authorities.
As a homeowner you now have to make declarations and payments to the Tax Authorities Curacao. On the tax return you indicate how high your rental income has been over a certain period. This can be done online via the website of the Curacao tax authorities at this link. You can also request a paper declaration form. You will then receive a tax assessment of 7% of the specified amount. You must pay the amount of this assessment to the tax collector. This can again be done online, via telebanking, or at the cash register of the tax office in Emmastad, at Regentesselaan z/n in Curacao.
Do you rent out your house via www.AirBnB.com?
An agreement is currently being drawn up between the Tax Authorities Curacao and the leading website www.airbnb.com. The intention is that AirBnB automatically charges 7% cost/sales tax on every online booking via the website. AirBnB withholds this tax and makes payment to the government. A similar agreement was previously concluded with the government of Aruba. This is not yet complete for Curacao and until then you have to continue to file a declaration yourself.
When the arrangement comes into effect, it goes as follows: As a landlord, you must send proof of payment, which you will receive via AirBnB, to the Tax Authorities Curacao. This so that they can check whether all turnover tax owed by you has been paid via AirBnB. It is expected that in the future, in addition to AirBnB, other websites will also enter into such an agreement with the government of Curacao.