Curaçao, the largest island of the former Netherlands Antilles, has been an autonomous country within the Kingdom of the Netherlands since October 10, 2010. In the Caribbean, Curaçao is one of the islands that is known as a “tax haven”. However, where many neighboring islands are on the black (or gray) list of the Organization for Economic Cooperation and Development (OECD), the tax legislation of Curaçao fully meets the requirements set by this organization.
The Curaçao tax legislation has undergone several changes in recent years to align with Organisation for Economic Co-operation and Development (OECD) and European Union (EU) requirements. For example, the so-called nexus approach for income from intellectual property was introduced as of 1 July 2018, the so-called “export regime” was abolished, and the “e-zone regime” was amended to eliminate those aspects that were considered ringfencing or harmful. As of 1 January 2020 new profit tax legislation has entered into force. The main new feature in the amended profit tax legislation is the change from a worldwide tax system with exemptions for foreign permanent establishments, sales to foreign buyers and foreign real estate, to a stricter territorial system where only income from a domestic enterprise is included in the taxable basis. The territorial system will not apply to passive income or any kind of royalty income as defined by the OECD. The Curacao tax legislation is very flexible and provides lots of opportunities for local and international companies.
TripleTrust is a fully licensed management company represented in Curaçao and Sint Maarten, providing a broad range of high quality management, legal and administrative services. Our experienced team of professionals puts you or your client’s best interests first. Together with trusted partners we develop the most suitable solutions with a focus on asset protection and tax planning for our clients.