Frequently Asked Questions
The buying process consists of the following phases
- The process begins with searching for the property that matches the wishes, needs and
budget of the buyer. - After finding the ideal property, the buyer will make an opening offer. A counter offer is
often made by the seller. - Once an agreement has been reached on the price and terms, a preliminary contract will
be drafted. - The buyer is required to make a deposit of typically 10% of the purchase price to a third
party account (escrow) at the notary. - The notary will contact the buyer to request documentation make the final required
payments, after which the deed will be signed by.
The additional fees involved are as follows
- Transfer tax (one-time tax) is 4% of the selling price. (Not applicable on properties sold
located in the city district). - Notary closing fees are approximately 1% of the selling price.
- In case you apply for a mortgage, the bank wants to have an appraisal report of the
house you are buying so they know the value of the house that they have as collateral
on the mortgage. An appraisal usually costs 1.2% of the market value of the property. - Mortgage closing fees are around 1% of the mortgage amount.
- There is also an annual Property Tax which ranges from 0.4% to 0.6% depending on the
value of the property. - Your mortgage provider will ask you to close a life and fire insurance which will have to
be paid for annually. A better indication of these costs are best obtained by talking to
your mortgage provider/insurance company.
The seller has to pay the real estate agent a commission of 4% of the price at which the property is sold. In the case of a lot, the commission can vary between 4 and 6%.
There are several local banks we can help you get in contact with to start your mortgage application process such as Banco di Caribe, Maduro & Curiel’s Bank, Vida Nova Bank and Orco Bank. Local banks typically finance around 70%-100% of the market value and so a minimum down payment of up to 30% is often required.
We do recommend getting a pre-approved loan before starting your search for a property as the
mortgage process can take up some time.
For long-term residential rentals, the equivalent of 1 month commission will be paid by the owner of the property to the realtor. All payments exclude a 6% charge for tax.
For Foreigners
- Highest standard of living in the Caribbean.
- A politically stable environment, as we are part of the Dutch Kingdom.
- Strategically located as a hub between South America and Europe.
- Year-round tropical weather, falls outside of the hurricane belt and is known for its pristine beaches and best diving spots.
- The multilingual talent of the locals is of great value for international investors that decide to establish their business on the island or wish to seek residence.
Yes, there are no restrictions for foreigners acquiring real estate in Curacao. Our government welcomes foreign investors. There is no need to apply for a residency permit in order to buy property on the island and foreign buyers will enjoy the same rights as citizens. Foreign buyers may purchase either freehold property land or lease land which is a very common means of property ownership in Curacao.
As of 2014, the government of Curaçao issued the uidelines Investors Permit 2014 in an effort to increase foreign direct investment. As a result, Curaçao opened a gateway for high net worth investors to obtain a residence permit in Curaçao and in principle after five years of eligibility for Dutch (EU) citizenship.
Family members of an investor who has been assigned an Investors Permit also receive a residence permit for Curacao. This is based on the family reunification / family formation scheme. However, if the permit of the main applicant / investor expires, the residence permit of his family members will also expire.
To qualify for the residence permit, the investor must prove that he or she:
● Has enough means to be able to meet the obligations arising from the investment.
● Holds no criminal record.
● Is in possession of a private health insurance policy.
● Is able to show official documents that the investor made or can and will make an
investment of the amount corresponding to the relevant period of the residence permit.
Citizens of the USA, EU, Canada and many Caribbean and South American countries may stay
in Curacao for up to 3 months (90 days) without a visa.
Non-citizens wishing to stay in Curacao for longer than 3 months (90 days) are required to apply
to the Immigration Department for a Residence Permit. In 2014, Curacao introduced an “Investor’s Permit” which offers foreign investors with sufficient funds to support themselves the opportunity to apply for residency. Please refer to FAQ “How much do I need to qualify for the investor’s permit” for more information on this.
To qualify, applicants are required to make an investment into a business or real estate such as
a private home.
To apply for residency in Curacao, applicants also need to provide:
● Proof of income
● Proof of ownership of a home in Curacao
● A valid passport
● Declaration of good behavior
● Copy of original birth certificate
● Medical certificate
● Proof of health insurance
If you have lived continuously in Curacao for 5 years with a valid residence permit and have a good understanding of Dutch you may apply for Dutch citizenship by naturalization.
