by Robin Nahuis
Closing costs in Curaçao
When you buy a home, you will usually negotiate the asking price. In the end, you arrive at the purchase price: the price at which the property is actually sold. Unfortunately, buying a home almost always involves additional costs. That is why you will often see the abbreviation “k.k.”, which means buyer’s costs. Most homes in Curaçao are sold on a buyer’s costs basis. This means that the additional costs associated with the purchase are paid by the buyer.
Below is an overview of what buyer’s costs generally include:
- Transfer tax: 4% in Curaçao;
- Land Registry fees and stamps: a standard fee of XCG 910 in Curaçao;
- Notarial fee: rates established by the Joint Court of Justice;
- Sales tax (OB): 6% of the notarial fee.
If a cost component is expressed as a percentage, that percentage is calculated based on the purchase price, provided that the purchase price is considered reasonable.
For most homes, total buyer’s costs usually range from 5% to 7% of the purchase price or registered value. Use the link below to access our calculator.
Are you taking out a mortgage loan? If so, you will also need a mortgage deed, which means additional costs will apply. These costs are not part of the buyer’s costs. You can also calculate the cost of a mortgage deed using the link below by entering the mortgage amount.
Exemptions from transfer tax
There are several exemptions from transfer tax, for example in the case of the transfer of a protected monument or certain gifts. In the latter case, however, inheritance and gift tax may still be due. Listing every exemption would go beyond the scope of this brief article.
Financing buyer’s costs in Curaçao
In some cases, banks may finance part of the buyer’s costs as well, but certainly not in every case. Banks generally prefer not to finance more than the value of the property. That is why it is wise to have your own savings available before buying a home, for example around 10% of the purchase price. Doing so increases the likelihood that you will actually be able to buy the property you want.
Free of buyer’s costs in Curaçao
The opposite of buyer’s costs is a sale free of buyer’s costs, meaning that the necessary transfer costs are included in the purchase price. Sales on this basis are rare in Curaçao. In that case, costs such as transfer tax, sales tax, Land Registry fees, stamps, and notarial fees are included in the purchase price. Additional costs that are not strictly necessary, such as the cost of a power of attorney or bank guarantee, are not included and must still be paid by the buyer. The same applies to the cost of a mortgage deed, if one is required.
Sources: Overdrachtsbelastingverordening 1908, Beschikking notaris tarieven – Gemeenschappelijk Hof van Justitie
In our blogs, we aim to provide useful information about matters that may be relevant when buying or selling a home. However, we cannot guarantee that this information is always complete, accurate, or up to date. No rights can therefore be derived from the content of our blogs.
Did we make a mistake? Please email us at robin@livinggoed.com. We would be grateful.
