A second home on Curacao
Dutch who buy a second home in Curacao are faced with ‘box 3’ of the new Dutch income tax: income from savings and investments. In principle, this includes the taxable income. This income is fictitiously set at 4% of the average annual value of assets minus liabilities. This notional income is taxed at a rate of 30%. For residents of the Netherlands, a tax-free allowance is set of ANG. 37 463. For residents of the Netherlands who are older than 65 years, there also is a surcharge on the elderly exemption.
Dutch living in Curacao, may opt to be treated as a resident taxpayer. In that case, they are treated as a resident of the Netherlands and they are also eligible for tax-free allowance. Dutch living in Curacao and did not opt for, in principle, are not entitled to those reductions. However, they can claim certain deductions based on the Tax of the Kingdom (BRK).
When buying a second home in Curacao should also take into account the usual taxes on buying / owning a home in Curacao.
Of course, here are some important things that your relations should take into account when buying a second home in Curaçao as a Dutch citizen:
Taxes: As a Dutch citizen who owns a second home in Curaçao, you are subject to local taxes. You must consider property taxes, income taxes on rental income, and any other taxes that may apply to your particular situation. It is important to be well informed about local tax laws and to consult a tax advisor if necessary.
Rental Income: If you are planning to rent out your second home in Curacao, you should be aware of the local rental laws and the taxes that apply to rental income. You should also ensure a reliable tenant and possibly hire a professional property manager to facilitate the management of your property.
Maintenance: As the owner of a second home in Curaçao, you are responsible for the maintenance of your property. This includes regular repairs, renovations and upgrades to maintain the value of your property. It is important to reserve a budget for this and to possibly hire a local contractor or manager to facilitate maintenance.
Insurance: Your second home on Curaçao must be insured against damage, fire and theft. You need to consider the cost of insurance and the coverage options available. It is important to consult an insurance agent and to ensure that your property is adequately insured.
Legal requirements: As a Dutch citizen who owns a second home in Curaçao, you should be aware of the local legal requirements for owning real estate. This may include obtaining a residence permit and other permits. It is important to understand and comply with these requirements to avoid any problems.
In short, buying a second home in Curaçao as a Dutch citizen involves some important considerations such as taxes, rental income, maintenance, insurance and legal requirements. It is important to be well informed about these matters and to seek professional advice if necessary to properly manage and protect your property.
Renting out a second home can have different advantages, depending on the rental period and the type of rental. When it comes to vacation rentals, this type of rental can generate more income than a longer-term rental, but it also requires more supervision. Short-term rentals can be a great way to gain more income and flexibility, while long-term rentals can provide more stable and consistent income. Renting out a second home can also be a good and smart way to get more return from your investment, because you are assured of rental income for a longer period. However, it is important to read carefully about the laws and regulations regarding renting out a second home, such as determining a rent, drawing up a rental contract and the tax rules that apply.
