On December 17, 2024, the Director of Fiscal Affairs extended the policy on the temporary relaxation of its policy regarding the tax incentive for investors (Tax Holiday) until December 31, 2025. This policy, aimed at land development projects, provides investors the opportunity to benefit from a relaxed scheme intended to stimulate investments and promote foreign visitor traffic to Curaçao.
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The National Ordinance on tax incentives for investments (Landsverordening belastingfaciliteiten investeringen – LBI) and the policy of the Director of Fiscal Affairs typically requires that at least 80% of the properties produced in land development projects be sold to or made available to foreigners. However, due to the impact of the COVID-19 pandemic and other economic challenges, it became difficult for investors to meet this standard. Consequently, the policy was temporarily relaxed in June 2021 to encourage investments and support Curaçao’s economic activity.
Temporary Relaxation
Under the adjusted policy, now extended until December 31, 2025, a land development project is considered to promote foreign visitor traffic if at least 50% of the properties produced are sold to foreigners or primarily made available to them. This standard remains unchanged from earlier extensions, creating a more attractive investment environment for developers targeting foreign buyers and tenants.
Scope and Conditions
The temporary relaxation applies to all applications submitted between January 1, 2025, and December 31, 2025. The policy exclusively applies to land development projects that do not fall under the hotel category. All other conditions and regulations associated with the issuance of leasehold land remain unchanged. The purpose of this
Policy Evaluation
The policy is temporary and will be re-evaluated at the end of the extension period. If the evaluation indicates that the economic circumstances justify continuation, the policy may be extended again.
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Should you have any questions regarding this announcement, please do not hesitate to contact us. Our team would be more than happy to assist you with your questions.
Key Contact
Jeannitza Felix