Curaçao
Curaçao is the largest island of the former Dutch Antilles, an autonomous part of the Kingdom of The Netherlands. On the territory of 444 km2 the island accommodates about 150.000 inhabitants. Curaçao is located about 40 navy miles away from the coast of South America, in the Caribbean sea outside the hurricane area.
The economy of Curaçao is strongly dependant on tourism and financial services. Thanks to the long tradition of an offshore jurisdiction providing trust services, the quality of financial services is very high.
The languages spoken at Curaçao are Dutch, English, Spanish and Papiamentu.
The Economical Zone (E-Zone)
In 2001 the government of Dutch Antilles adopted a law to stimulate the economic activities on the island. This resulted in an interesting tax planning possibility for enterprises that register themselves within the E-zone and whose activities are directed to markets outside the Dutch Antilles.
2% corporate tax
Enterprises that qualify for the E-zone status are till 2026 guaranteed to pay only 2% corporate tax. In order to emphasize this rule, it has been defined by law.
Participation exemption
When the shares of an E-Zone enterprise are held by a Dutch BV, this BV can apply for the regime of participation exemption. By this, the profit after taxation of the E-Zone company can be distributed to the Dutch BV completely tax free.
No dividend tax
There is no dividend tax on Dutch Antilles. The E-Zone company can distribute its profits to its shareholders tax free.
Private Foundation (Stichting Particulier Fonds)
When the shares of an E-Zone enterprise are held by a Private Foundation, the profit after taxation of the E-Zone company can be distributed to this Foundation tax free.
The Foundation can distribute the accumulated assets to its beneficiaries tax free. Under certain circumstances, the distribution/gift to Dutch beneficiaries can remain tax free as well: it is possible to avoid the taxation in Box 1. The assets must be reported in Box 3 by which the tax tariff lowers to 1.2%.