OZB - Property Tax in Curacao

In 2014, the property tax (onroerendezaakbelasting or OZB) was introduced in Curaçao, replacing the former land tax (grondbelasting). There are several differences between land tax and property tax. The terms “immovable property” and “real estate” have the same meaning. Since 1 September 2019, there has also been a filing obligation for OZB.

What Is Property Tax (OZB)?

Property tax (OZB) assessments are issued annually. Tax is levied on the value of immovable property in Curaçao. This may concern undeveloped property (land) or developed property such as a house or commercial building. Do you rent land from a private landowner but own the building on that land? In that case, the landowner pays the OZB. Do you rent land from the Country of Curaçao? Then you do pay OZB on the value of the building, but not on the value of the land. If it is established that there is no lessee of land owned by the Country of Curaçao, the person who enjoys the use of a structure (building) on leased land must pay the property tax (OZB).

You are liable for OZB if you hold the right of ownership, possession, or a limited property right in immovable property. Limited rights include, for example, the right of superficies, leasehold, or usufruct. If multiple persons hold ownership, possession, or a limited right, one of them may file the declaration as a representative.

OZB works with five-year valuation periods. The tax is levied on the value at the beginning of the five-year period. The current period runs from 1 January 2024 through 31 December 2028. In principle, the OZB value remains the same throughout the entire period, unless significant changes are made to the property. Examples include building a house, renovation, extension, subdivision, or demolition. A new value is only applied if the property value has increased by 5% or more, with a minimum increase of XCG. 25,000.

OZB Rates in Curaçao

The OZB rate in Curaçao is progressive and divided into brackets. The higher the value of your property, the higher the applicable rate. This bracket system was chosen to prevent a small increase in value from resulting in a disproportionately large increase in tax. In column III, we always list the base amount of the relevant bracket, so that you do not need to calculate the value through all brackets. To calculate the amount due, determine the row in which your property value falls (the property value lies between column I and column II). Multiply the amount between column I and your property value by the rate in column IV. Then add the result to the amount in column III.

OZB Rate Table

In 2020, a rate reduction was announced for the 2019–2023 period; however, this reduction was never officially implemented. The OZB rates have remained unchanged since their introduction in 2014.

Example Calculation

A house located on Kaya XYZ has an assessed value of XCG. 625,000. This property falls into the second bracket. The fixed amount for this bracket is XCG. 1,400 (see column III). A rate of 0.5% applies to the value between columns I and II (see column IV). The difference between column I and XCG. 625,000 is XCG. 275,000. 0.5% of ANG 275,000 equals ANG 1,375. The total OZB amount is therefore: XCG. 1,400 (column III) + XCG. 1,375 = XCG. 2,775.

What Value Is Used for OZB?

The Tax Authority (Belastingdienst) determines the tax base, which is the property value on which OZB is levied. The Inspector of Taxes determines the value through valuations carried out by professional appraisers. Properties are assessed from the public road. The Inspector performs random audits of both the valuation process and the established values. Once the value has been determined, you will receive a letter stating the assessed OZB value.

Filing an Objection Against OZB in Curaçao

Do you disagree with the value determined by the Inspector? The letter from the Inspector explains how you can file an objection. You may choose how to submit your objection, for example by using the sample letter provided by the Curaçao Tax Authority. If you wish to object to the assessed economic value, this is only possible in the first year of the valuation period. For the period from 1 January 2024 to 31 December 2028, objections must therefore be submitted with the 2024 assessment. You cannot object to the valuation in later years of the same period.

Supporting Evidence for an Objection

When filing an objection, you must explain why you believe the assessed value is incorrect. You may choose how to substantiate your objection. You are not required to submit a valuation report at that stage.

In the objection, you must indicate the value you propose yourself. If the Inspector disagrees with your proposed value, he will contact you, after which you may decide whether to commission an appraiser to prepare a valuation report. Please note that the cost of such a report may exceed the potential tax savings.

It is possible to request a deferral of payment for the disputed portion, meaning the difference between the assessed value and the value you propose.

Remission and Exemptions

If your only source of income is an old-age pension (AOV), or if you have no income, you may apply for remission of the OZB. Exemptions also apply, among others, to churches, hospitals, and sports facilities. For a complete list, consult the National Ordinance on Property Tax (Landsverordening onroerendezaakbelasting) 2014 .

For objections or up-to-date information, please refer to ozb.belastingdienst.cw or belastingdienst.cwAdditional legal information can be found in the  National Ordinance on Property Tax (Landsverordening onroerendezaakbelasting) 2014 or National Ordinance on Tax Measures (Landsverordening Belastingmaatregelen) 2019.

Filing Obligation

The National Ordinance on Property Tax 2014 was amended in September 2019 through the introduction of the National Ordinance on Tax Measures (Landsverordening belastingmaatregelen) 2019. Since then, owners (including economic owners) of immovable property are subject to a filing obligation for OZB. In the past, assessments were issued solely by the Inspector. Now, property owners must also file a declaration, as the Tax Authority does not always have sufficient information to issue a correct assessment.

If you become the owner of immovable property or if something changes, such as construction or another value-increasing event (a value increase of 5% with a minimum of XCG. 25,000), you must file a declaration with the Inspector within two months of acquisition or change.

Have you not received an OZB assessment within 12 months after the end of a calendar year? In that case, you must also file a declaration within two months after those 12 months have elapsed. Example: if you did not receive an assessment for the 2023 tax year in 2024, you must file a declaration yourself in the first two months of 2025.

The Tax Authority (Belastigndienst) looks at who was the owner of the property on 1 January of the relevant year. Have you recently purchased a property? Then the OZB for the current year was likely settled pro rata between you and the seller by the notary. The seller is responsible for paying the OZB for the ongoing year.

How Do I File a Declaration?

There is no prescribed format for the declaration. However, the following information must be included:

• Your name, address, and CRIB number as the taxpayer;
• The date from which you have held ownership, possession, or a limited property right;
• The type of right you hold (ownership, possession, usufruct, superficies, or leasehold);
• The address of the immovable property;
• The indicative value of the immovable property.

The purchase price or a valuation report can provide a good indication of value, provided this information is recent.

You may submit the declaration by post or deliver it in person at the World Trade Center on Piscaderaweg, addressed to the Property Tax Department. We recommend submitting the declaration by email to onroerendezaakbelasting@gobiernu.cw.

If an assessment is set too low because you failed to meet your filing obligation, the Inspector may impose a penalty of up to 100% of the assessed tax. This penalty must be paid within two months after receipt of the assessment, unless you have timely filed a substantiated objection.

If no declaration was filed, or if it was incorrect or incomplete, the Inspector may issue an additional assessment and a penalty for up to ten years retroactively. Ensure that you file on time and that all information provided is correct.

Penalty for Failure to File (or Incomplete/Incorrect Filing)

If no declaration was filed, or if the declaration was incorrect or incomplete, the Inspector may impose an additional assessment and a penalty for up to ten years afterward. The penalty amounts to 100% of the tax due.

If you have questions about property tax, feel free to send an email to robin@livinggoed.com.

Sources: ozb.belastingdienst.cw; National Ordinance on Property Tax 2014 (P.B. 2013, no. 52); National Ordinance on Tax Measures 2019 (P.B. 2019, no. 55)

Disclaimer: This blog contains concise information about property tax (OZB) in Curaçao. We cannot guarantee that this information is always error-free, complete, or up to date. No rights can be derived from our blogs.

Have we made a mistake, or has something changed? Please send an email to robin@livinggoed.com. We would be grateful.