The Tax Holiday is being reviewed to align it with the expectations of all stakeholders

WILLEMSTAD.- During a Real Estate event, Minister Javier Silvania highlighted, among other things, the Tax Holiday and mentioned that the government is reviewing this matter.

It is necessary to stimulate investments in the real estate sector. The government has already changed the rule for the tax holiday in land development from 80/20 to 20/80, which has resulted in different projects.

But the Fiscal Affairs Sector (SFZ) also faces challenges. The rules for implementing the current tax holiday are complicated. This causes delays in practice. Additionally, the nature of our tax holiday legislation is under international pressure. At this moment, the government is thinking of ways to revise the tax holiday to align it with the expectations of all stakeholders, including those in the real estate sector, the government apparatus, and international parties.

It is not just a technical fiscal matter. Revising the tax holiday regulations requires a common effort from all parties to make the construction sector’s facilities more efficient and effective. Therefore, Minister Silvania needs the help of everyone in the Real Estate sector. He mentioned that he is open to ideas.

They seek a balanced contribution from both foreign and local investors for the growth and development of Curacao. This means collaboration, shared responsibility, and a common effort to create an attractive and sustainable investment climate. The revision of the tax holiday regulations is aligned with this goal.

Additionally, the minister wants to address the issue of turnover tax on short-term accommodations and the role of online platforms like Airbnb and Booking.com. These platforms have a huge impact on our tourism sector and offer great opportunities. It is necessary to ensure that both the commissions of online platforms and the income of the hosts are correctly included in the taxes. This will guarantee a fair contribution from all parties involved.

The importance of the real estate sector to our economy cannot be emphasized enough. The construction sector is a driver of growth, innovation, and employment. Every new development, every new investment contributes to the prosperity of our island. Foreign investors must contribute just as much as local ones, and together they can create an environment where everyone can thrive, Minister Silvania emphasized.

The minister also called attention to the issue of social housing. There is a significant shortage of housing in this segment, and the problem needs to be addressed. The minister believes that every person in Curacao should have access to decent housing, and he calls on real estate developers to think and work together on solutions for this area. He sees this not only as a moral duty but also as an opportunity to contribute to the social stability and well-being of our island.

Additionally, the minister highlighted the financial importance of the property tax, OZB, in Curacao. This administration has eliminated delays and achieved significant improvement in identifying property owners and collecting the OZB. It is an ongoing process that will continue to be worked on. Efficient collection of the OZB is crucial for the finances of our public services and infrastructure. Do not forget that real estate buyers must report their transactions for property tax.

Efforts have been made in recent years to improve the tax service’s attention. A considerable number of processes have been automated, including tax declaration and payment. This allows for more efficient work and is reflected in tax collection for our country. The minister also called on developers to help distribute the tax burden more fairly and equally, ensuring everyone contributes and reducing illegal work.

It is the government’s intention to legalize undocumented workers who have jobs in the future. Naturally, this means that they too must contribute to social benefits and are obliged to pay income tax in Curacao.

The Tax Holiday is being reviewed to align it with the expectations of all stakeholders.

WILLEMSTAD.- During a Real Estate event, Minister Javier Silvania highlighted, among other things, the Tax Holiday and mentioned that the government is reviewing this matter.

It is necessary to stimulate investments in the real estate sector. The government has already changed the rule for the tax holiday in land development from 80/20 to 20/80, which has resulted in different projects.

But the Fiscal Affairs Sector (SFZ) also faces challenges. The rules for implementing the current tax holiday are complicated. This causes delays in practice. Additionally, the nature of our tax holiday legislation is under international pressure. At this moment, the government is thinking of ways to revise the tax holiday to align it with the expectations of all stakeholders, including those in the real estate sector, the government apparatus, and international parties.

It is not just a technical fiscal matter. Revising the tax holiday regulations requires a common effort from all parties to make the construction sector’s facilities more efficient and effective. Therefore, Minister Silvania needs the help of everyone in the Real Estate sector. He mentioned that he is open to ideas.

They seek a balanced contribution from both foreign and local investors for the growth and development of Curacao. This means collaboration, shared responsibility, and a common effort to create an attractive and sustainable investment climate. The revision of the tax holiday regulations is aligned with this goal.

Additionally, the minister wants to address the issue of turnover tax on short-term accommodations and the role of online platforms like Airbnb and Booking.com. These platforms have a huge impact on our tourism sector and offer great opportunities. It is necessary to ensure that both the commissions of online platforms and the income of the hosts are correctly included in the taxes. This will guarantee a fair contribution from all parties involved.

The importance of the real estate sector to our economy cannot be emphasized enough. The construction sector is a driver of growth, innovation, and employment. Every new development, every new investment contributes to the prosperity of our island. Foreign investors must contribute just as much as local ones, and together they can create an environment where everyone can thrive, Minister Silvania emphasized.

The minister also called attention to the issue of social housing. There is a significant shortage of housing in this segment, and the problem needs to be addressed. The minister believes that every person in Curacao should have access to decent housing, and he calls on real estate developers to think and work together on solutions for this area. He sees this not only as a moral duty but also as an opportunity to contribute to the social stability and well-being of our island.

Additionally, the minister highlighted the financial importance of the property tax, OZB, in Curacao. This administration has eliminated delays and achieved significant improvement in identifying property owners and collecting the OZB. It is an ongoing process that will continue to be worked on. Efficient collection of the OZB is crucial for the finances of our public services and infrastructure. Do not forget that real estate buyers must report their transactions for property tax.

Efforts have been made in recent years to improve the tax service’s attention. A considerable number of processes have been automated, including tax declaration and payment. This allows for more efficient work and is reflected in tax collection for our country. The minister also called on developers to help distribute the tax burden more fairly and equally, ensuring everyone contributes and reducing illegal work.

It is the government’s intention to legalize undocumented workers who have jobs in the future. Naturally, this means that they too must contribute to social benefits and are obliged to pay income tax in Curacao.