Temporary voluntary disclosure scheme for rental income.

Rental property owners can report income without penalty until September 30, 2025.

The Ministry of Finance has launched a one-time voluntary disclosure initiative offering private landlords in Curaçao the opportunity to report previously undeclared rental income without facing fiscal penalties.

This temporary measure, known as the "Inkeerregeling," is designed to help property owners bring their tax affairs up to date and avoid retroactive fines and tax assessments. The scheme is open to individuals renting out homes or apartments, whether for short-term tourism or long-term residence, whose rental income is subject to income tax under Curaçao law.

Generally, 65% of rental income should be declared and will be subject to income tax rates between 9.75% and 46.5%. However, recent investigations by the Tax Authorities have revealed that many landlords have either failed to declare or have only partially declared their rental income, leading to the imposition of additional tax assessments and fines on several property owners. In response, the Ministry now extends this arrangement as a constructive gesture to encourage voluntary compliance.

• Landlords who fully declare their rental income for the 2024 tax year in their 2024 income tax return, submitted by September 30, 2025, will be exempt from additional tax assessments and fines relating to previous years (up to and including 2023).
• This exemption applies only if the landlord has not yet been approached by the SBAB or the Tax Authority regarding possible undeclared income.
• The Tax Authority will be closely scrutinizing the completeness of rental income declarations for 2024. Those who do not take advantage of the voluntary scheme and whose hidden income is later discovered may face retroactive tax assessments and penalties for up to ten years.

For more information or assistance, do not hesitate to contact us at: belastingen@bdo.cw or +5999 462 1200.