Curaçao landlords evading taxes have been given a grace period (see related story). Those who fully declare all rental income for 2024 in their tax return before September 30 will not face additional assessments or penalties for previous years up to and including 2023. The scheme is intended for private owners of houses or apartments who rent them out, both to guests and residents.
The intention is to enhance the currently low fiscal compliance in this sector. From October authorities will more strictly monitor such activities and go after offenders.
The approach could be something for St. Maarten to consider, but has an important shortcoming: It applies mostly to local registered taxpayers, not foreign property owners.
Many of them too make money here on their vacation homes when not using such, often offering these as short-term vacation rentals. No tax is levied on related revenues simply because they are not registered taxpayers.
This is why reaching a revenue-sharing agreement with online booking platforms like Airbnb seems logical. However, the latter does not want to be singled out and is asking for legislation that targets all providers.
Meanwhile, the present situation continues to allow unfair competition for more traditional vacation accommodations that must be fully fiscally compliant to operate. The employment they create makes them an essential component of the island’s tourism economy.
One way or the other, there remains a need to level that playing field.