Investing in the Historic City Center of Curacao

The historic city center of Willemstad offers investors unique opportunities. Monumental properties not only provide character and special locations but also offer financial benefits through high rental and nightly rates, as well as attractive tax advantages. Here are the key benefits of investing in this remarkable city.

High Rental Yields when investing in Curacao

Nightly rates for tourist accommodations in monumental properties in neighborhoods such as Pietermaai and Otrobanda range from USD 150 to USD 350 per night, with high occupancy rates. There is also growing demand for long-term rental properties in the higher-end segment of the city. Apartments in renovated monuments can be rented for ANG 2,500 to ANG 5,000 per month, depending on location and amenities.

Subsidy and Financing for Restoration

A major financial advantage is the subsidy for restoration costs of properties within the UNESCO World Heritage site. For residential projects, the subsidy covers 60% of eligible costs, while commercial operations such as hotels or restaurants are eligible for 40%. This makes it financially viable to redevelop even heavily neglected properties.

In addition, the Dutch Restoration Fund offers special loans for the restoration of monuments in Curacao, with an attractive interest rate of just 2%.

Tax Advantages for Purchase and Operation

In addition to subsidies, investing in monuments on Curacao offers various tax advantages:

• No Transfer Tax: The purchase of a protected monument is exempt from transfer tax, saving 4% of the purchase price directly.

• Tax-Free Interest: Interest and other income from debt claims secured by a mortgage on a protected monument are tax-exempt.

• Increased Investment Deduction: Investments in the maintenance or improvement of a protected monument are eligible for an increased investment deduction of 30% (instead of the standard 10%). This also applies to monuments used as residences.

• Costs for Workspaces: Businesses operating from a protected monument can deduct the costs of maintenance and improvement from their business profits, up to 20% of the investment amount.

• Pensionado Scheme: A pensionado can receive tax benefits if they rent or own a protected monument valued at least NAf 450,000 for residential or rental purposes (for up to 4 months per year).

Conclusion

Investing in the monuments in the historic city center of Willemstad not only offers attractive rental income but also significant tax benefits and subsidies. Given the strong development of the city center and the growing demand for high-quality residential and lodging accommodations, now is the ideal time to invest in this unique and historic location.