
Real Estate Curaçao
Freehold Land, Leasehold, or Rental Land on Curacao?
Buying or building a home in Curaçao: Freehold Land, Leasehold, or Rental Land?
Are you considering buying a home in Curaçao or perhaps purchasing a plot of land to build your dream house? If so, it is essential to understand the different types of land ownership available and the regulations that come with them. The three most common types of land ownership in Curaçao are freehold land (eigendomsgrond), leasehold (erfpacht), and rental land (huurgrond). Additionally, if you prefer to build your own home, you may opt to purchase a plot of land, which involves additional administrative steps and regulations.
As an experienced real estate agency in Curaçao, we will explain the differences between these land types and help you determine which option best suits your needs.
Freehold Land: The most secure and popular option
Freehold land is the most secure and sought-after form of land ownership in Curaçao. When you purchase a home on freehold land, you own both the land and the property built on it. This means you have full control over modifications, expansions, or selling the property without restrictions from a landlord or the government. However, keep in mind that any new construction or certain renovations may require a building permit. Additionally, you might have to adhere to regulations outlined in the subdivision plan (verkavelingsplan).
Advantages of Freehold Land:
- Full ownership of both the land and the property
- No annual lease payments or rental obligations
- A stable and valuable long-term investment
Freehold land is the most secure form of property ownership, but it is not the only option available in Curaçao.
Leasehold (Erfpacht): An Alternative with Conditions
With leasehold land, you lease the land from the government or a private owner for a long-term period, usually 30 or 60 years. In exchange, you pay an annual fee known as the leasehold canon (erfpachtcanon). While you own the house built on the land, you do not own the land itself.
Advantages of Leasehold Land:
- Often a lower purchase price compared to freehold land
- Access to attractive locations at a lower initial cost
- A lease term of 30 or 60 years is long enough for stable homeownership
- Leasehold is a legal property right that can be freely sold and cannot simply be taken away from you.
- After full ownership ( freehold) , it is the strongest right established by law.
Disadvantages of Leasehold Land:
- The annual leasehold fee is mandatory
- Ownership is tied to the lease term, requiring renewal when it expires
For many buyers, leasehold is a great option because it is typically more affordable than freehold land. Approximately one-third of all land in Curaçao is issued as leasehold, meaning many homeowners rely on this system. Because of its widespread use, significant changes in leasehold fees are unlikely. As a result, leasehold property in Curaçao is considered just as valuable as freehold land.
Would you like to know whether buying a home in Curaçao on leasehold land is the right choice for you? We are happy to provide guidance.
Rental Land: The Least Secure Option
Rental land is the least secure form of land ownership in Curaçao. This type of land is leased from the government and cannot be sold without approval from the Minister. Additionally, buildings on rental land legally belong to the government unless a right of superficies (recht van opstal) has been established.
Key Considerations for Rental Land:
- You do not own the land, which provides less security
- The government controls what happens to the land
- Rental land can be converted into leasehold, but the process is lengthy
- The rental contract is not transferable
For those seeking a stable investment or a permanent residence, rental land is generally not the most attractive option.
How to Apply for Leasehold Land in Curaçao
If you wish to apply for a leasehold plot from the government, this is handled through the Bureau of Domain Management (Bureau Domeinbeheer). Applicants must meet specific requirements and provide supporting documents.
Requirements for a Leasehold Plot:
- You must be at least 21 years old
- You must be registered and residing in Curaçao
- You must not own or lease any other land
- Your annual income must be below 70,000 ANG
Required Documents:
- An extract from the Population Register (not older than two weeks)
- A statement from the Public Registry proving you do not own any other land
- A copy of your passport or identification card
- A tax stamp of 10 ANG
Once your application is submitted, you will be placed on a waiting list. Processing times may vary, as applications are reviewed in order of submission.
Leasehold with or without a Subdivision Plan
When applying for a leasehold plot, it may either have a subdivision plan (verkavelingsplan) or not. This determines how quickly you can start building.
Leasehold with a Subdivision Plan
If a plot is part of an approved subdivision plan, the government has already designated it for construction. This speeds up the process, as some administrative steps can be skipped.
Steps for Leasehold with a Subdivision Plan:
- The application is placed on the waiting list
- The Land Registry (Kadaster) measures and registers the plot
- The government drafts the leasehold contract
- The transfer is completed at the notary’s office
- The plot is officially registered in the buyer’s name
Leasehold without a Subdivision Plan
If a plot does not have a subdivision plan, additional steps are required because the land has not yet been approved for construction. The government must first determine whether the land is suitable for housing development.
Additional Steps for Leasehold without a Subdivision Plan:
- Approval from the Department of Spatial Planning (R.O.P.)
- Land marking and measurement by the Land Registry (Kadaster)
- Submission and approval of the leasehold application by the Minister of VVRP
- Transfer at the notary’s office
This process generally takes longer than for plots with an approved subdivision plan.
Which Option is Best for You?
Are you looking to buy a home in Curaçao or purchase a plot of land to build your dream home? While you do not choose the type of land ownership, it is crucial to understand its implications for your rights, obligations, and future plans.
Freehold land offers maximum security and ownership rights, while leasehold can be a more affordable alternative with some conditions. Rental land provides the least security and is less common for private homeownership. If you are considering buying a plot of land, it is essential to check zoning regulations and building requirements.
As an experienced real estate agency in Curaçao, we guide you through the entire purchase process, from your first viewing to the legal transfer at the notary’s office.
Are you searching for a home for sale in Curaçao or the perfect plot of land? today. We are happy to help you make the right choice!
📩 and explore the possibilities.
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