The Real Estate Agency of Curacao tells: TAX BENEFITS WHEN BUYING A MONUMENT ON CURACAO

7 januari 2017
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The Real Estate Agency of Curacao tells: On January 1, 2017, the National Ordinance on Tax Facilities for the Historic City Center and Monuments came into effect. The unique view of the historic part of Willemstad and the monuments that have been registered are considered of great value for the tourist attraction of Curaçao. The purpose of this national ordinance is to preserve or restore the relevant buildings in the city center and other qualifying monuments. Since older buildings often entail higher costs for maintenance and repair, it is considered desirable to facilitate and encourage investments in such buildings. In general, this regulation applies to all buildings that are officially designated as monuments. We have the National Ordinance on file, would you like to receive a copy? Then please contact us. We will gladly send it to you. We are very experienced in selling monuments, especially because we think they are so beautiful ourselves.

PROTECTED MONUMENTS ON CURACAO 

A protected monument is a monument that is registered in the public register for protected monuments or immovable property located in the center of Willemstad. The city center of Willemstad is the urban area and port area that has been recognized as a historic area by the United Nations Educational and Cultural Organization (UNESCO) and that is designated as the historic part of Willemstad by national decree containing general measures. The tax benefits mentioned below apply to these protected monuments on Curacao.

 

TAX BENEFITS IN INCOME TAX

Interest

Interest and other proceeds received on receivables, which are insured in principal by mortgage on a protected monument, remain untaxed.

Investment deduction

If an investment is made in a year in the maintenance or improvement of a protected monument, the standard investment deduction rate is increased from 10% to 30%. The exclusion does also apply to residential homes, so that the investment deduction of 30% also applies to investments in protected monuments that are used as residential homes. If the revenue of a company is achieved with activities from a workspace in a protected monument, the costs will be charged to the revenue of the company in that year for a maximum of 20% of the investment amount.

Rent by a penshonado

Pursuant to the penshonado legislation, to qualify for the penshonado rate, a penshonado must own a house with a value of at least NAf 450,000, unlet. The present national ordinance ensures that a pensioner also qualifies for the pensioner rate if he rents or owns a protected monument or part thereof with a value of NAf 450,000 for habitation or has it at his disposal and rents it out for a maximum of 4 months per calendar year.

TAX BENEFITS IN PROFIT TAX

The same facilities apply to income tax as described above under ‘Interest’ and ‘Investment deduction’.

TAX BENEFITS TRANSFER TAX

The transfer of a protected monument is exempt from transfer tax. This saves you 4% when purchasing a monument.

TAX BENEFITS STAMP TAX

The deeds of mortgages on protected monuments are exempt from stamp duty.

BUY A MONUMENT ON CURACAO

International Fine Living Curacao is the expert in the field of sale of monuments, country houses and historical real estate. There is no other broker on Curacao that has sold as many country houses and monuments as International Fine Living. Our entire team is passionate about historic real estate. In the past we have had the following monuments and historical buildings in our portfolio:

  • Landhuis Jan Thiel
  • Landhuis Bona Vista
  • Huize Batavia
  • Hotel Scharloo
  • Landhuis Vredenberg
  • Landhuis Groot Kwartier
  • Landhuis Francia
  • Landhuis Ronde Klip
  • Landhuis Siberie
  • Landhuis Salinja
  • Landhuis Sirena Bay

If you are looking for a monument, please contact us, we regularly have monuments on Curacao for sale, many times in silent sale. 

This article was published in the series : The Real Estate Agency of Curacao tells.

International Fine Living does its best to inform people who buy a house on Curaçao or sell a house as well as possible. Unfortunately, our time is also limited and we will not always be able to publish the latest updates. We therefore always recommend that you verify the information provided. A special warning for all English text; the official language spoken on Curaçao is Dutch and Papiamento, please take into account that translation errors to English might occur.

Categorieën: Curaçao island, News, Real Estate Curaçao

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