Curacao

A guide to buying a home in Curacao Compiled by Allegra Hamilton

Background and history

The largest of the five islands that make up the Netherlands Antilles, just 44 miles north of South America, Curacao is a long and mostly flat island of 182 sq miles, with a coastline of rough weather buffed cliffs and stunning bays and inlets.

The history of Curacao began with Amerindian Arawaks, who migrated from South America on their journey through the Caribbean. Discovered before the 16th Century by the Spanish who were unimpressed with the lack of fresh water and gold, Curacao was eventually abandoned.The Dutch West India Company laid claim to the island in 1634, installing the Dutch explorer Peter Stuyvesant as Governor, who established plantations and developed various forms of agriculture such as peanuts, maize and fruits, finally finding a niche in the production of salt from the island’s saline ponds. During the early 18th century, the island’s deep harbour and strategic position attracted the British who tossed out the Dutch twice between 1800 and 1815, when the Treaty of Paris returned Curacao to the Dutch.

The origin of the island’s name is often disputed - one popular theory was that the Spanish first called the island Curazon – Spanish for ‘heart’ – and was altered by Portuguese mapmakers to Curacao, while locals spell the island Kursou, a Papiamentu word. In 1914, oil was discovered off the Venezuelan coast, signalling a new era for Curacao, which became (along with Aruba), a centre for distilling crude oil from Venezuela and along with it came a rapid growth in immigrants from all over the world. While the island never achieved true independence, it has a measure of autonomy as an entity within the Kingdom of the Netherlands.While Curacao is still a member of the Netherlands Antilles, and is tied to Holland through governmental functions, the island’s culture has strong ties to both Africa and the Caribbean – an extremely cosmopolitan island, there are strong ties to its African memories through language, music, and dance.

Curacaons are, by nature and necessity, masters of language and multi-lingual - while Dutch is the official language, Papiamento is the most common and both English and Spanish are widely used. Nearly perfect weather year-round and a location outside the hurricane belt makes Curacao an attractive proposition.

Economy & Tourism

With a well-developed infrastructure and modernized facilities, Curacao’s economy relies heavily on shipping, tourism and oil refining (which contributes to more than 90% of all exports) and a growing offshore banking sector. Residents enjoy a relatively high standard of living, thriving on foreign exchange income from tourism, services and family transfers from Holland.

The population of around 150,000 is made up of more than 40 nationalities, mainly from Europe, South America and Africa as well as the native Indians that once inhabited the island. Curacao is seeking to leverage its unique advantages, encourage economic growth and to create an attractive and open environment, friendly to foreign investment. The local currency is the Antillean guilder, fixed to the U.S. Dollar at 1.77 to US$1. Known for shopping as good as it’s beaches, Curacao’s capital, Willemstad, is a lively city and bustling port.

A Caribbean tourist paradise, Curacao has long been a family friendly, destination of choice – an island offering a sophisticated and educational experience for both residents and visitors. Known as a haven for scuba divers and nature lovers, the island has wildlife reserves, crystal clear seawater, a wonderful climate as well as fascinating architecture and many museums that tell the island’s history, reflecting an island with old world charm and new world sophistication.

Real Estate Options

The real estate market is growing, and in line with the policy of encouraging foreign investment, the financial market has seen potential for offering services consistent with the demands of the offshore clientele.There are no restrictions on purchasing property, and international mortgages are available for non-residents. Long-term financing for purchasing or constructing a home can extend to 70% up to a value of $2.5 million and up to 60% for properties costing in excess of that amount for periods of up to 20 years, at competitive rates of interest The financing limit for the construction of new properties is 50% of cost, while owners of existing Caribbean property can also obtain financing for up to 50% of the value to finance alternative investments.

Most real estate agents on the island provide recognised appraisal services for purchasers - once you have decided on your property, and a price has been agreed, a purchase and sale agreement is signed and 10 % deposit paid. The deed can be signed within 8 weeks – a notary, selected by the purchaser, who also manages all financial transactions and handles all legal aspects. Other considerations are closing costs, which can run to around 4% of the purchase price, consisting of a one-off property transfer tax (3 %) and taxes and notary fees over the mortgage deed (1-1.5 %).

Curacao’s real estate offerings vary in price, mostly according to location, as the desire for coastal living continues to push prices up. A single storey 3 bed, 3 bath home in the capital of Willemstad can be had for as low as US$200,000, while a large country style home with pool and landscaped gardens can run to US$500,000 or more.

For more information:www.realestate-curacao.com