Property Tax in Curaçao

The real estate agent of Curacao tells: (blog update 2024) As of January 1, 2014, the land tax in Curaçao has been replaced by the property tax (OZB). The legislation for this was approved by Parliament in May 2013. This blog explains the key matters from this national ordinance.

What has changed compared to the land tax?

Not really that much. The language and concepts in the national ordinance have been modernized, the valuation-based value is now the clear concept of 'value in economic transactions', a bracket rate has been introduced, and the tax has been increased. Furthermore, it is new that for structures on leased land owned by the Country of Curaçao, the tenant of the land is liable for tax on the value of the structure. The number of exemptions for the OZB has been mainly supplemented with nature areas that are open to the public after approval by the Minister and sports grounds and sports facilities of the government or foundations that do not aim for and do not make profit. A final OZB assessment must be paid within 2 months after the date of issue. Tax relief (for example due to long-term vacancy) is no longer possible.

Tax liability for OZB - Must I pay OZB?

The OZB is levied from those who at the beginning of the calendar year have the enjoyment of an immovable property through ownership, possession, or limited right. So if you buy a house in Curacao, the remainder of the year is settled at the notary in Curacao.

You will find the OZB as a cost item on the notary's settlement, this falls under the Buyer's Costs among others. We as real estate agents in Curacao are happy to explain in our own words how to read this settlement. We also check, at your request, whether the settlement from the notary in Curacao is correct.

What exactly is immovable property?

A built property (residential house, shop, office etc.).
An unbuilt property (land). Furthermore, there are rules for combinations of these that are considered as one immovable property when combined.

In deviation from the above, leased land that is owned by Curaçao and a structure present on it owned by the tenant are considered as two separate immovable properties so that the tenant of the land can be taxed for the value of the structure.

What is exempt from OZB?

Immovable properties owned by Curaçao
Immovable properties owned by the State of the Netherlands and exclusively used for public service
Buildings that are mainly intended for public worship with accessories
Cemeteries and crematoriums with associated buildings
Buildings exclusively serving for providing non-commercial education
Buildings exclusively serving for healing or nursing of sick or disabled persons
Cultivated land commercially exploited for agriculture or forestry, insofar as it does not form the foundation of buildings
Certain business premises and immovable properties owned by companies that fall within specific regulations that promote economic development through investments
Nature areas that are open to the public after approval by the Minister
Sports grounds and sports facilities

For buildings serving public worship, education, healthcare, and sports facilities, the exemption applies if owned by Curaçao or a foundation without profit motive or profit made.

Which value applies for the OZB?

The basis for OZB assessment is the value in economic transactions: the value that a random third party is willing to pay to buy your immovable property and can take immediate and full possession (thus not the value in rented state). The value of a structure on leased land owned by Curaçao is determined without taking into account the value of the underlying land. For leasehold, the value of land and building(s) together applies.

In some exceptional cases, a different basis for valuation applies. We refer to the text of the national ordinance for this (www.ozb.belastingdienst.cw). The reference date for establishing the value is at the beginning of the five-year period for which the value is determined. The first period for the OZB is from January 1, 2014, through December 31, 2018. This thus concerns the value as of January 1, 2014, 2019, 2024 etc.

Within the five-year period, the value can change due to renovations, demolition etc. See the legal text about when and how this can have consequences for the OZB.

How is the value determined? Valuation

The Inspection determines the value of an immovable property through valuation. For the first five-year period of the new OZB, this is done with the help of valuers.

From the end of May 2014, they have gone into neighborhoods and areas in teams to perform valuations. The valuers do their work from public roads etc. and will not approach residents for information. However, the valuers can identify themselves. After checking the available data and random sampling of the received valuation, the Inspector sends a letter to the taxpayer for the OZB containing the established value. The taxpayer is also offered the opportunity to submit arguments against the established value. The taxpayer is free in the way they contest the value. They can submit documents they consider relevant. For example, a recent valuation report in connection with the desire to sell or apply for financing, which shows a lower market value than the value established by the Inspection. The entire valuation process will likely take several years given the number of immovable properties to be valued in the cadastral database (more than 50,000).

Assessments

The OZB is levied through imposing assessments. There are provisional assessments and final assessments.

A provisional OZB assessment may be paid in as many installments as there are months remaining in the year after the date of the assessment. The Inspector determines the value of the immovable property with the first final assessment of the five-year period. If this happens in another year after 2014, final assessments are simultaneously imposed for all years already passed in the five-year period and the current year. A final OZB assessment must be paid within 2 months after the date of issue.

If there is more than one taxpayer with respect to an immovable property (undivided estate, timeshare etc.), the Inspector can impose the assessment on one of them. Assessments with an amount of tax due less than NAf. 100 are not imposed. Assessments must be paid to the Receiver within 2 months after the date of issue.

Objection to the established value

The taxpayer can only submit an objection to the Inspector against the established value of the immovable property for the first year of the five-year period. This is thus only possible after receipt of the final assessment 2014 after the value determination of the immovable property.

The notice of objection must be submitted within 2 months after the date of the assessment. A notice of objection against assessments other than the final assessment for the first year cannot therefore be directed against the established value.

Bought a new or existing house and you don't receive an OZB assessment?

If you are going to buy a house in Curacao or building land or something changes, for example through building a house or another value increase (value increase of 5% with a minimum of ANG. 25,000), then you must file a return with the Inspector within two months after acquisition or change.

If you have not received an assessment for the OZB within 12 months after the end of a calendar year, you must also file a return within two months after the end of these 12 months. Example: have you not received an assessment for the tax year 2020 in 2021? Then you must file a return yourself in the first 2 months of 2022!

If you receive an annual assessment for the OZB, you don't need to do anything. Haven't you received the assessment for 2019 (or 2018) yet in 2020? Then you must file a return yourself before March 1, 2021.

How do I file a return for OZB in Curaçao?

Filing a return is free-form, but the following information must be included in your return:

Name, address and CRIB number of you as taxpayer
Since which date you have the right of ownership, possession or limited right
Which right you have on the immovable property (right of ownership, possession, usufruct, building rights or leasehold)
The address of the immovable property
Indicative value of the immovable property

The purchase price or valuation report can provide a good indication of the value, provided these details are recent.

You can send the return by email to: onroerendezaakbelasting@gobiernu.cw

Address your letter to the Inspector of Taxes, property tax department. If the assessment has been set at too low an amount because you have not complied with your filing obligation, the inspector may impose a fine of up to 100% of the amount of the assessment when determining the assessment. You must pay the fine within two months of receiving the assessment unless you have submitted a reasoned objection in time.

If you have not filed a return, or it is incorrect or the information was incomplete, the Inspector can impose an additional assessment and a fine up to 10 years later! So make sure you file your return on time and that the information in it is correct.

Contact & information about property tax in Curaçao

Website of the government in Curacao about the OZB You will find a button in the top right of the 'homepage'. On this site you will find a wealth of more detailed information about the OZB. For verbal questions, you can visit the information desk of the Tax Inspection, Regentesselaan z/n. in Curacao during opening hours. Do expect some waiting time.

Article about OZB from Antillean Daily 2020 This article appeared in the series: The Real Estate Agent of Curacao tells.

International Fine Living does its best to inform people who buy or sell a house in Curaçao 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 verifying the provided information with the appropriate authority or company; no rights can be derived from the accuracy of the information provided.