Curacao

The basics/background – The island of Curacao is located in the extreme south of the Caribbean Sea, just north of the coast of Venezuela. Curacao is one of the "ABC" islands - together with Aruba and Bonaire. It is roughly 38 miles long and up to 7 1/2 miles wide at its widest point. Curacao is the largest and most populous of the Netherlands Antilles. The primary airport is Hato Airport (airport code CUR) located toward the north center of the island. Most flights in are connecting from Antigua (via Liat) or San Juan (via American Eagle) (or from Aruba, St Maarten or Venezuela on smaller airlines), though there are direct flights in from some American airports and KLM from Europe, particularly during the high season of December to April. Currency is the Netherlands Antillean Guilder (or Florin in local parlance), which is tied to the US Dollar at a fixed rate of about 1.78 Naf to 1 US Dollar. The official language is Dutch, however the primary language is Papiamento, which is an island creole of Dutch, Spanish and Patois. English is widely spoken as is Spanish to a lesser degree. US Dollars are accepted virtually everywhere.

Curacao is a bit unique in the Caribbean as tourism is only its second largest industry - second to oil refining, which tends to dominate the central part of the island. Curacao's wonderful, deep-water harbor and greatly protected port drew Royal Dutch Shell there some decades ago and though they have since left, the refinery continues to be the island's largest employer. Climate is extremely consistent (e.g., we noticed our last rental car didn't even HAVE heat in it) year-round (lows in the 70s and highs in the 80s or 15-32 Celsius all the time) and both ambient and water temperatures vary little throughout the year. There is very little precipitation much of the year and the landscape is rather notably different from most of its northerly, less dry island counterparts in the basin. Cacti abound and the vegetation is more reminiscent of a desert than a lush, tropical island. The other and, perhaps, most important note regarding weather is that Curacao lies so far south that the gulf stream, jet stream and prevailing weather patterns carry most hurricanes away, as well! Major hotel chains, such as Hilton, Hyatt and Marriott are already on island (mostly near Otrobanda) with several other properties to open soon. Curacao is trying to becoming a larger dive destination, but will have difficulty resting the "title" away from neighboring Bonaire.

Curacao is also a fairly significant economic hub for the region, largely due to the location and effectiveness of its port and one of the most significant airports in the region. This has led to a fair amount of growth in the areas of offshore-banking and company formations.

Crime appears to be more of a concern on Curacao then on many of the other islands we have reviewed. This was evident in more barred windows, more gated communities with security, rental cars with built-in security systems and the like.

Desirability for investment - We feel that Curacao is definitely not for everyone as it is drier, less lush, a bit further south, has little truly postcard-beautiful scenery, possesses few truly nice beaches, is quite industrial in some areas, etc., however, it also has a number of advantages such as few hurricanes and fairly low overall tax structure and expenses. It also has good access from South American ports and is generally well-stocked with foods and general goods making construction and day-to-day living a bit more convenient (and cheaper) than many other islands where goods are not as readily available.

There are no restrictions on private ownership of land in Curacao. Property taxes are fairly reasonable, at about 1.2% of the purchase amount. Fees for purchase are quite reasonable at around 5-6% in stamp duties/transfer fees and an additional 1-2% for notary closing.

Building costs are anywhere from $100 to $300 per square foot or slightly below Caribbean average.

Residents of Curacao pay a 10% tax rate on all foreign-sourced income, such as retirement income from a company pension.

Rental of properties is difficult to generalize… Caribbean rules apply. There is a high season of about four months (December through April, usually starting around Christmas) and a big drop-off to the off-season. The weather is very consistent year-round, but these seasonal rules still apply as the consumer base is driven primarily by a desire to escape the cold, North American Winters. Costs and rates tend to be a little below average for the Caribbean. A well-appointed villa may be $1,000 or more per week, but most properties are more like average apartments. Management or caretaker services, housekeeping, carrying costs, etc. are also below average. Expect 20-30% plus or minus from a management company.

Ownership and Title Information: Ownership is freehold and subject to few restrictions. The process will generally be an offer coupled with funds equal to around 1% of the purchase price. If accepted, further down payment to 10% will be expected. The balance of the purchase price will be paid and the title transferred at closing.

Representative listings: Like most of the Caribbean basin, Curacao is without a MLS system to help in your search for properties. That being said, Curacao has a fairly sophisticated group of real estate agencies and they can assist most buyers competently.

Areas: Curacao has many personalities depending on which part of the island you find yourself in... the whole west (and north) end of the island is VERY quiet and virtually undeveloped. There are a few beaches from Westpunt to Boca Grandi and some small projects (e.g., Marazul Dive Resort) in that area. The central part of the island is dominated by Willemstad, the port, airport and the Otrobanda/Punda areas. Otrobanda/Punda have most tourist facilities including hotels, casinos, restaurants, and the like and most condo/apartment projects appear to be concentrated here (e.g. La Vista, Parasassa, Caribbean Beach Resort). Further east (southeastern part of the island) in the Santa Rosa or Brakkeput areas south to Caracas Baii you can find many high-end projects and gated communities. The Caracas Baii area stands-out quite notably as the nicest real estate on Curacao with many larger homes ranging well upwards of $1 million in price. While the area is fairly nice and pretty and affords fairly good convenience to Willemstad in a cleaner and seemingly safer environs, there is no obvious reason why it holds such distinction. The far east (south) end is also VERY quiet.

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