Voluntary Disclosure Opportunity for Landlords (Curacao)
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Curaçao Tax Authorities offer one-time opportunity for private landlords to voluntarily correct Income tax returns without facing penalties. This measure aims to allow taxpayers to regularize undeclared rental income from previous years without adverse fiscal consequences.
Background
According to the Tax Authorities’ news release, a significant number of individuals on Curacao rent out properties for both short-term tourist stays and long-term residential purposes. These rental proceeds are subject to income tax and must be reported accordingly. However, investigations have revealed that in many cases this income is either not reported or only partially declared. As a result, several landlords have already received additional tax assessments and penalties. To address this issue and provide taxpayers with a final chance to regularize their tax situation, the Tax Authorities have introduced a temporary disclosure arrangement. This measure is described as exceptional and reflects the Authorities’ willingness to take a constructive approach in working with taxpayers.
Conditions
To benefit from this opportunity, the following conditions must be met:
• All rental income for the year 2024 must be fully and accurately reported in the 2024 personal income tax return.
• The personal income tax return 2024 must be filed before September 30, 2025.
• The taxpayer must not have been contacted by the Stichting Belastingaccountants Bureau (hereinafter referred to as: “SBAB”) or the Tax Authorities regarding undeclared income prior to filing.
If all conditions are met, the Tax Authorities will waive any additional tax assessments and penalties for undeclared rental income for the years up to and including 2023. This effectively removes any fiscal risk related to undeclared rental income from the past.
Attention Point
The Tax Authorities have also announced that income tax returns for the year 2024 will be reviewed with increased scrutiny, specifically with regard to the completeness of reported rental income. According to the news release, taxpayers who do not make use of the voluntary disclosure and are later found to have omitted income may face additional assessments and penalties for up to ten years retrospectively.
Contact
Our dedicated team of tax experts is here to guide you through the new voluntary disclosure opportunity for real estate rental income in Curaçao, ensuring you remain compliant, minimize risk, and make the most of this one-time chance to regularize your tax position.
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.
