SER Curaçao reviews bold property tax reform

Willemstad, February 26, 2025 — The Social and Economic Council (SER) of Curaçao is scrutinizing a proposed amendment to the 2014 Real Estate Tax Ordinance, aimed at modernizing the island’s property tax system to foster greater equity, transparency, and economic growth. On Friday, February 21, members of the MAN fraction in the Parliament of Curaçao —who spearheaded the legislative initiative—presented an in-depth briefing to the SER, outlining the rationale behind the proposed changes. The draft legislation seeks to recalibrate the tax burden, offering relief to small homeowners and vulnerable social groups while increasing contributions from wealthier property owners with greater financial capacity. The lawmakers argue that the existing tax structure is outdated and misaligned with Curaçao’s evolving economic realities. Under the proposed framework, the value and usage of properties would carry more weight in determining tax rates, ensuring that the system more accurately reflects owners’ ability to contribute. Smaller residential properties and socially disadvantaged groups would benefit from reduced tax pressure, while high-value property owners would assume a more proportionate fiscal responsibility.
The draft bill also includes targeted tax incentives aimed at stimulating economic growth, particularly in sectors like social housing and small enterprises. By offering strategic tax breaks, the proposal seeks to balance fiscal fairness with economic development, encouraging investment in areas that strengthen social cohesion and community resilience. With this detailed briefing, the SER of the Leeward Island is now positioned to conduct a thorough, independent evaluation of the proposed legislation. As Curaçao’s primary advisory body on socio-economic matters, the SER’s forthcoming advice will be instrumental in guiding policymakers as they weigh potential reforms that could reshape the island’s real estate landscape for years to come.