Published On: Tue, Apr 16th, 2013

Property owners will pay more tax starting January 2014

Jose JardimWILLEMSTAD – The Curacao Parliament approved a new law on real estate tax during yesterday public meeting. Minister of Finance Dr. Jose Jardim explained what this new law entails.

This new law will be introduced starting January 1, 2014 and it replaces the old property tax from 1908. The tax increase is necessary to save the public finances. Also, after more than 100 years, the property tax is a bit antiquated. This is what the Minister stated in a press release.

“The Government took into account the less privileged and that is why the new tariffs are adjusted according to the financial capacity. You pay 0.345% in the old property tax law on the house, building and/or land. In the new law it depends and can grow depending on the value of the house, building or land; a house, building or land with a value up to 350.000 will pay 0.4% in taxes. A house, building or land with a value between 350.000 guilders to 750.000 guilders will pay 0.5% starting from 350.000 guilders. A house, building or land with a value of more than 750.000 guilders will pay 0.6% tax starting from 750.000 guilders,” the Minister explained.

Minister Jardim continues saying: “An example to show what the changes are per month:

The real estate tax increase per month depends on the economic value of each property. For example if an owner has a house, building and/or land with a value of 100.000 guilders will pay a bit less than 6 guilders extra per month compared to the old law. A house, building and/or land with a value of 200.000 guilders will pay 11.50 guilders extra compared to the old law. Those properties with a value of half million guilders will pay 35 guilders extra per month and those with a value of one million will pay 115 guilders per month compared to the old law. The owners can always reach an agreement with the tax collector if they don’t have enough money when it’s time to pay.”

The new real estate law exonerates different properties like churches, hospitals, nursing homes, cemetery, nature parks (like Christofel Park) which are open or public, non commercial education, agriculture, buildings owned by the Government of Curacao, sports. The tax increase is not meant for people to lose their property.

The Minister has also informed Parliament that he will start an process of reducing the Government’s spending. With this policy some criteria will be established for the Government entities.

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