Income Tax on Immovable Rental Property TEXT BY: NICOLE D. E. ECHOBARDO LL.M, TAX ASSISTANT AT MEIJBURG & CO CARIBBEAN AND QUINCY N. LONT LL.M, SENIOR TAX MANAGER AT MEIJBURG & CO. CARIBBEAN.
One of the fundamental tax matters that never seems to go out-offashion is the taxation of income derived from immovable properties.
Lately it has been a worldwide trend to let your immovable property to third parties via online platforms such as Airbnb, Booking.com, Agoda etc. Income derived from immovable properties located in Curaçao falls in principle under the following sources of income: - A. Income from Business Enterprise (active) B. Income from Immovable Property (passive) Looking forward to earning income from your rental property? In the following, we
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CURAÇAO BUSINESS
will provide you with necessary information to consider when evaluating and improving your current or future property rental income position for income tax purposes. Please note, that the information provided in this article is limited to the tax consequences for individual taxpayers that receive their rental income derived from their own immovable property and not in the name of a company organized as a legal entity, such as an N.V. or B.V. According to the income tax legislation of
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Curaçao, all revenues received from immovable properties located in Curaçao by an individual must be declared in the personal income tax return. This includes any payment, e.g. advance rent, lease and cash, received for the use or occupation of your rental property. Even if you are not a resident of Curaçao, but you do receive rental income from an immovable property located in Curaçao, you are considered a foreign taxpayer for Curaçao income tax purposes and therefore the received revenues are subject to taxation. Furthermore, the scope of the taxable rental income is not limited to ownership, for instance income derived from subletting immovable property is also deemed a taxable income. The following
