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Tax on Curacao

Guardhouse Financial Services is happy to assist you in optimizing your tax position. Contact Joost Houtsma from Guardhouse Financial Services, the expert in taxation and real estate, today for a no-obligation introduction.
When renting out real estate located in Curaçao, 65% of the rental income is taken into account as taxable income. The costs charged by the lessor (tenant charges) are not regarded as rental income. This could include, for example, costs for electricity and garden maintenance. These costs can be directly deducted from the rental income

After the fixed deduction of 35%, any interest charges may be deducted from the financing of the property, as well as the premium of a term life insurance policy associated with that loan.

If the property is sold for an amount higher than the purchase price, no tax is due on it.

Rental income is taxed at the progressive income tax rate. The following rates apply for 2022:


More than But not more than Due IB Tax rate
I II III IV
ANG 0 ANG 34.889 ANG 0 9,75%
ANG 34.889 ANG 46.519 ANG 3.402 15%
ANG 46.519 ANG 69.779 ANG 5.146 23%
ANG 69.779 ANG 98.853 ANG 10.496 30%
ANG 98.853 ANG 145.372 ANG 19.218 37,50%
ANG 145.372 - ANG 36.663 46,50%


In addition, there are various compliance obligations for the other Curaçao taxes (sales tax, property tax).

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When renting out a home in Curaçao, what percentage of the rental income is subject to income tax?

65% of the rental income is considered taxable income. The remaining 35% is treated as a standard, or "fictitious," deduction for costs.

If you sell your private home in Curaçao for a profit, is this capital gain taxed?

No. any profit or "sales result" from the future sale of your home is tax-free.

Besides the standard 35% cost deduction on rental income, what other significant expense is mentioned as being deductible?

The mortgage interest paid on the property's financing is also deductible from the rental income.

What is the main tax advantage of placing Curaçao real estate into a Private Fund Foundation (SPF)?

The primary advantage is that the rental income from the real estate is not taxed. This is because the SPF, as an entity, is in principle exempt from profit tax on this type of passive investment income.

What is the stated goal of Guardhouse's tax advisory service for its clients?

Their goal is to ensure clients benefit from an optimal tax structure. They analyze a client's specific situation and future plans to advise on the most favorable fiscal possibilities, making sure the client does not pay more tax than is necessary.

Pim, it’s a great pleasure that we write this testimonial to your wonderful service. Our journey with Pim van Ogtrop and Remax Bonbini started in Switzerland when we decided to buy a second home in Curacao. We found you on the internet along with 4 other realtors who we asked to send us property listings. At first we were looking for a home under $200,000 and you made us feel just as important as the buyer with the multi-million dollar budget. You were the only agent that was consistent...

Carol & Hans Mueller

Switzerland

Hans en Margriet, graag wil ik jullie nog bedanken voor het begeleiden van de verkoop van onze woning op Curaçao. Wij zijn dik tevreden over de communicatie tussen ons en wanneer er vragen waren van onze kant werden die naar behoren opgelost.Mochten wij ooit in de toekomst weer wat willen op Curaçao, dan wil ik graag weer gebruik maken van jullie makelaarskantoor.Succes verder op het mooie eiland Curaçao.

Fam. H. Brouwer

Drachten, Netherlands

Hans and Margriet were very knowledgeable about the project and quick to respond to any questions we had. The purchase was very smooth and now we look forward to moving into The Shore at the Blue Bay Resort in Curacao.

Mark Kirkland and Peter van der Laarse

Zug, Switzerland

I would highly recommend Hans & Margriet & Jeroen for any of your real estate needs on Curacao. This was our 2nd  transaction with the office and it once again went smoothly and with excellent communication along the way. Thanks again for everything and look forward to working with you both again in the near future! We panning to buy more properties and we shall use off course you again.

Mika and Rien Brouwer

Florida USA

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