Taxes and incentives in Curaçao
How the tax system works for property owners and new residents, which incentives exist and when you need a tax advisor.
If you own property in Curaçao, you pay transfer tax when you buy (usually 4%) and an annual property tax of 0.4% to 0.6% of the value. If you also move here, Curaçao taxes your worldwide income at progressive rates, with a special regime for some newcomers aged 50 and over. Americans remain taxable in the United States wherever they live. Reference date: September 2026.
How does the tax system in Curaçao work?
Curaçao has its own tax system, separate from the Netherlands and the United States. Residents pay income tax on their worldwide income, at progressive rates from 9.75% to 46.5% in 2026. Non-residents are only taxed on certain income from Curaçao, such as rent from a property on the island.
Roughly, three areas matter:
- Income: salary, pensions, business profits and rental income.
- Real estate: transfer tax when you buy and an annual property tax as an owner.
- Sales tax: on goods and services, including short-term rentals.
There is no annual wealth tax for private individuals, and selling a privately held rental property is generally not taxed as income. Your tax position depends mainly on where you are a tax resident. That is a different question from where you have a residence permit or own a home.
Which taxes apply when you own property in Curaçao?
When you buy, you usually pay 4% transfer tax. As an owner, you pay an annual property tax (OZB) on the value of your property. If you rent the property out, the rental income is taxed as well, and selling or inheriting a property can have tax consequences too.
- Transfer tax: 4%. Paid by the buyer on the transfer of real estate, through the notary. Protected monuments and properties in the historic center of Willemstad can be exempt.
- Property tax (OZB). Annually, on the assessed value: 0.4% on the first XCG 350,000, 0.5% on the next XCG 400,000 and 0.6% on the amount above XCG 750,000. The value is set for five-year periods.
An example: for a home valued at XCG 900,000 (about USD 503,000), the property tax comes to about XCG 4,300 a year (USD 2,400). The transfer tax on the purchase is XCG 36,000 (about USD 20,100). For all closing costs, see buying property in Curaçao.
Rates and rules depend on the property, its use and how you own it, and they can change. Reference date: September 2026.
How is rental income taxed in Curaçao?
For private rentals, 65% of the rental income is generally taxed as income: a fixed 35% deduction replaces the actual costs. Certain financing costs can be deductible under conditions. For tourist rentals of up to 90 days, 7% sales tax applies on top. Long-term residential rent is exempt from sales tax.
If renting out becomes a business activity, for example with several properties and active management, different rules apply. Actual costs then become deductible, but a later sale can be taxed as well. Whether you own the property privately or through a company also makes a difference. This is where a tax advisor earns their fee. Reference date: September 2026.
Which tax incentives are there for new residents?
The best-known incentive is the penshonado regime: a flat 10% tax on foreign-source income for people aged 50 and over who move to Curaçao and meet specific conditions. Besides that, the regular income tax has deductions and exemptions that apply to everyone. There is no general tax holiday for new residents.
The main conditions of the penshonado regime (September 2026):
- You are 50 or older when you register as a resident.
- You have not lived in Curaçao in the previous five years.
- Within 18 months of registering, you own a home in Curaçao worth at least XCG 450,000, for your own use.
- You do not work or run a business on the island.
Instead of 10% on your actual foreign income, you can choose to be taxed on a fixed income of XCG 500,000 at the regular rates. Income from Curaçao itself is taxed normally. Whether the regime pays off depends on your income, your home country and the tax rules between the two.
Can you get residency in Curaçao through investment?
Yes. Curaçao has a residence permit for investors. With an investment of at least XCG 500,000 in the local economy, you can qualify for a residence permit. Larger investments can lead to a permit for a longer period or for an indefinite time. Buying a home does not automatically give you a right to live here.
The thresholds, as of September 2026:
- XCG 500,000: a permit for three years, renewable.
- XCG 750,000: a permit for five years, renewable.
- XCG 1,500,000: permanent residence.
The money has to be actually invested on the island, in real estate or in a business. You also need health insurance, a certificate of good conduct and proof that you can support yourself, among other things. A spouse and children can usually receive a permit for the same period.
This route is realistic for investors who would invest these amounts anyway, and especially for nationalities without another route. Dutch and American citizens can usually settle through the simpler Declaration by Operation of Law, described on moving to Curaçao.
What changes when you become a tax resident of Curaçao?
Owning a second home in Curaçao does not make you a tax resident. Actually moving here does: once your life is centered on the island, Curaçao taxes your worldwide income. Your home country may still tax certain income. Where you pay depends on your tax residency, your income and the rules of your home country.
If you spend part of the year here and keep your home, work and family base elsewhere, you usually remain a tax resident there, and Curaçao only taxes your Curaçao income, such as rent.
For Americans, this matters more than for anyone else. The United States taxes its citizens on their worldwide income wherever they live. Moving to Curaçao does not end your US filing obligations, and there is no income tax treaty between the United States and Curaçao. The foreign earned income exclusion and foreign tax credits can prevent most double taxation, but only if they are arranged carefully, ideally by an advisor who knows both systems.
For Dutch citizens, the tax arrangement between the Netherlands and Curaçao (BRNC) determines which country may tax which income. The Dutch state pension (AOW), for example, stays taxed in the Netherlands.
Which tax assumption do people most often get wrong?
The assumption I hear most often is that Curaçao is a tax haven, and that buying a home here means you hardly pay tax anymore. It doesn’t work that way. A home on the island does not change where you are a tax resident, and residents pay progressive income tax like anywhere else. The advantages that do exist are real, but they come with conditions. Check them before you buy, not after.
When do you need a tax advisor?
This page gives orientation, not tax advice. Bring in a tax advisor with experience in both Curaçao and your home country as soon as your situation involves more than one home for your own use. In particular when:
- you are moving to Curaçao and want to know where you will be a tax resident;
- you are considering the penshonado regime or a residence permit through investment;
- you plan to rent out, especially short-term or with several properties;
- you want to buy through a company or another structure;
- you are an American citizen, or you have pensions, investments or a business in another country;
- you want to plan an inheritance or gifts to your children.
Look for an international tax advisor or a firm that works in both countries, not a general bookkeeper.
Taxes are one part of the picture
See what buying property in Curaçao costs in total, how banking and financing work, what to consider when investing in Curaçao real estate and what moving to Curaçao involves. For advice on your own situation, see private advisory.
Frequently asked questions about taxes in Curaçao
The main one is the penshonado regime: a flat 10% tax on foreign-source income for new residents aged 50 and over who meet conditions, including owning a home worth at least XCG 450,000. There is no annual wealth tax. Regular income tax is progressive, up to 46.5%, so Curaçao is not a tax haven for everyone.
Buyers usually pay 4% transfer tax. Owners pay an annual property tax (OZB): 0.4% on the first XCG 350,000 of the value, 0.5% on the next XCG 400,000 and 0.6% above XCG 750,000. Rental income is taxed separately, and selling or inheriting a property can have tax consequences. Reference date: September 2026.
Usually 4%, paid by the buyer through the notary at closing. On a property of XCG 900,000 (about USD 503,000), that is XCG 36,000. Protected monuments and properties in the historic center of Willemstad can be exempt. Check the exact amount on the notary’s settlement statement. Reference date: September 2026.
For private rentals, 65% of the rental income is generally taxed as income, because a fixed 35% deduction replaces actual costs. Certain financing costs can be deductible. Tourist rentals of up to 90 days also carry 7% sales tax. If renting becomes a business activity, different rules apply. Reference date: September 2026.
Yes. With an investment of at least XCG 500,000 in the local economy, you can qualify for a three-year residence permit. Larger investments can lead to five years or permanent residence. Buying a home does not automatically give you the right to live here. Conditions apply. Reference date: September 2026.
Possibly. Residency in Curaçao does not automatically make you a tax resident, and your home country may keep taxing certain income. Americans remain taxable in the United States on their worldwide income. Rules to prevent double taxation often apply, but have your own situation checked by a tax advisor.
Reference date: September 2026. This page gives general orientation and is not tax or legal advice. Rates and rules change; we review this page every year. Sources: Tax Authority of Curaçao (property tax, ozb.belastingdienst.cw), Curaçao tax legislation on transfer tax, income tax and sales tax, the penshonado regime and the investor permit as published by the Government of Curaçao, the tax arrangement between the Netherlands and Curaçao (BRNC) and the US Internal Revenue Service (IRS).