Too good to be true?

Before even considering to move your business activities to the fiscally friendly island of Curacao, you may want to ensure that:

• the business structure you have in mind will not by any chance get you into legal or fiscal issues;
• you will continue to be 100% in charge;
• that your Curaçao based partner (trust company) will be a 100% trustworthy.

What are your options?

An Offshore N.V. according to former bylaws

These Offshore N.V. ‘s, that were incorporated before January of 2002., received a guarantee that the current tax percentage of 2,4 – 3.0% will not be increased up until at least 2020.

The New Fiscal Framework N.V. (2002)

N.V.’s that were incorporated as of January of 2002, would normally be charged a tax rate of 34.5%. However, quite a set of options for deduction of the cost before taxation were introduced with the “Belastingregeling voor het Koninkrijk” (The taxation regulations for the whole Kingdom of the Netherlands). Also, the law provides opportunities to negotiate custom rulings for individual N.V’s. Compared to the Offshore NV as mentioned above, this NV comes with a savings of approximately 20% with regards to dividend taxes.

The New Fiscal Framework Offshore B.V.

This B.V. comes with a 0% tax rate, but is not protected by the “Belastingregeling voor het Koninkrijk”. It is oftentimes used as a suitable alternative for the Dutch B.V., can be registered directly with local Dutch Chambers of Commerce.

The E-zone N.V.

If your business meets the following criteria:

• Provides services via the internet
• Caters to a clientele that is mainly situated outside of Curaçao
• Owns and operates computer server that is situated in one of the so-called E-zones

then your business may qualify to incorporate a so-called E-zone N.V. E-zone N.V. are taxed at a 2% rate, which is guaranteed up until at least 2026.

Air carrier or vessel B.V.

Are taxed at an average of 7.73 and 9.66%. Curaçao offers these B.V. ‘s the option to be taxed based on tonnage rather than based on profits, which can be an interesting option in several situations.

Private Foundation (Stichting Particulier Fonds)

The use of a Private Foundation can enable businesses and individuals alike to protect their assets from steep tax rates and other external influences. A Private Foundation can own real estate, perform the role of a holding (own shares), manage royalties, own and manage bank accounts, etc. Property held or capital gained within a Private Foundation is not taxed at all.