Erfpacht or eigendom in Curaçao: what are you buying?

When you buy a house or a plot in Curaçao, one question comes before all others: do you get the land as well? Some homes are sold in eigendom (full ownership of the house and the land), many others on erfpacht (a long lease on land that belongs to the government). Both are normal here and both are open to buyers from abroad, but they're not the same thing. This article explains the difference from the buyer's side: what erfpacht costs, how long it lasts and what to check before you make an offer.

Eigendom: the land is yours

With eigendom you own the house and the land under it, registered in your name at the Land Registry (Kadaster). You can use and sell it as you like, within the zoning rules and any mortgages or other registrations on it. Your yearly costs are the property tax (OZB) and your own upkeep.

Erfpacht: the house is yours, the land is leased

With erfpacht the land stays the property of the government of Curaçao. Its land office, Domeinbeheer, issues the land on a long lease, and in return you pay a yearly fee for it: the canon. The lease itself is a property right. You can sell it and use it as security for a mortgage, and a sale goes through the notary, just like a house in eigendom.

What does erfpacht cost per year?

According to Domeinbeheer, the canon for a lease it issues or renews is 6% of the land value per year, and that land value is set by independent appraisers. For a lease that already runs, the amount is in the deed, so ask the seller for the current canon and proof that it's paid. Keep it in mind when you compare prices: a house on erfpacht can look cheap next to a similar house in eigendom, but the canon comes on top, every year.

How long does it last, and what happens then?

For housing, Domeinbeheer issues erfpacht for at most 60 years. When the term ends, Domeinbeheer sends the leaseholder a proposal for a new lease (wederuitgifte), and you have 4 weeks to say in writing whether you agree. Then follows a new deed at the notary, with a canon based on the land value at that moment. So the years left on the lease matter: with only a few years to go, a renewal with notary costs and a new canon comes soon after you buy.

When can the government end the lease?

Domeinbeheer can cancel an erfpacht if the canon isn't paid, or if the land is used for something else than agreed without a permit. For land it hands out to build on, it also cancels when building doesn't start within 6 months or the house isn't finished within 2 years. Looking at an empty plot on erfpacht? Ask the notary which building deadlines are in its deed.

Short lease (huur) is something else

Some government land is rented out on a short lease (huur) of at most 5 years, mostly for farming. That right can't be passed on to someone else, and building on it is often not allowed. For housing, Domeinbeheer can often turn it into erfpacht, but that takes an application and costs money (transfer tax, Kadaster, notary and the new canon). So a plot on huurgrond can't simply be sold to you: ask the notary first.

Checklist before you make an offer

Find the right house or plot

Our map shows 170 building lots for sale today, with a median asking price of $212,000: see land for sale in Curaçao. Planning to build? Read buy a house or build one. The steps and buying costs are in our buyers guide, and the last step in the notary when buying a house. Or go straight to everything for sale on the map.