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Curaçao

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Taxes

Tax residency – A BV is tax resident in Curaçao if it is incorporated under Curaçao law or it is managed and controlled from within Curaçao.

Basis – Corporate income tax is levied on income sourced in Curacao.

Tax rate – Curacao operates a territorial tax system - profits from sources in Curacao are subject to 22% corporate taxes, whereas profits from foreign-sources are exempt from taxation.

In order to determine whether income is from a foreign-source or from a local source, a coefficient between locally born expenses and foreign expenses must be calculated.

Capital gains – Capital gains from equity participation in local entities are exempt from taxes. When it comes to foreign entities, the full participation exemption applies when the participation is not held as a passive investment (portfolio shares) and/or is subject to tax over the underlying participated entity profit. If the foreign participation is held as a passive portfolio investment and is not subject to tax over its profits, a partial participation exemption may apply on dividends received from such a foreign participation. In order to determine the profit in case of the partial participation exemption, only 10/T (T being the current profit tax rate) which applies in the year in which the dividends are received, are considered.

Dividends – Dividends  from equity participation in local entities are exempt from taxes. When it comes to foreign entities, the full participation exemption applies when the participation is not held as a passive investment (portfolio shares) and/or is subject to tax over the underlying participated entity profit. If the foreign participation is held as a passive portfolio investment and is not subject to tax over its profits, a partial participation exemption may apply on dividends received from such a foreign participation. In order to determine the profit in case of the partial participation exemption, only 10/T (T being the current profit tax rate) which applies in the year in which the dividends are received, are considered.

Interests – Interest payments are treated as ordinary income for corporate tax purposes.

Royalties – Royalties are treated as ordinary income for corporate tax purposes.

Withholding Taxes – There are no withholding taxes.

Losses – Losses may be carried forward 10 years. Carryback of losses is not allowed.

Inventory - Inventory valuations are usually made at the lower of cost or market value. In general, the book and tax methods of inventory valuation will be acceptable.

Anti-avoidance rules – Transfer pricing rules are applicable to all types of transactions between related persons, which must be conducted at arm’s length according and supported by relevant documentation.

Tax credits and incentives – Tax holidays may be available for companies investing in the tourism sector. Insurance companies may also benefit from favourable tax regimes.

Investment companies are subject to 0% corporate tax provided that -

  • The statutory purpose of the company consist exclusively or almost exclusively of making credit investments, investing in securities and deposits, or developing and exploiting intellectual and industrial property rights and similar property rights or rights of use
  • The management of the Company consists exclusively of one or more persons residing in Curaçao or certified trust companies established in Curaçao, or directors of certified trust companies and other persons employed by these trust companies. The same can be complied with appointing our resident director.
  • The financial statements of the company are audited by an independent auditor
  • The underlying participations are subject to at least 10% tax on its profits (or the underlying participations that are not subject to at least 10% tax on its profits, do not exceed 5% of the investment income of the Curaçao company)
  • The company has presence in Curacao, including a number of qualified full-time employees appropriate to the nature and scope of the Company's activities as well as local operating costs.

Personal income tax – Individuals may be considered tax residents if their center of existence is deemed to be in Curaçao.

Residents are taxed on their worldwide income at progressive rates up to 46.5%. However, under the pensioner’s regulations scheme, an eligible individual may opt to be taxed at a 10% flat rate on his foreign-source income or at the applicable progressive rates on deemed income of ANG 500,000. A reduced rate of 19.5% may apply to income received from a qualified pension savings account, private foundation, a trust or a substantial share interest.

Capital Gains are taxed at the standard PIT rate.

Other taxes – Sales tax is levied at 6%. Other tax rates (0%, 7% and 9%) may apply to certain goods and services.

Curaçao levies a real property tax of between 0.4% and 0.6% on the tax value of the property. There is an inheritance and gift tax of 6% and up to 25%, respectively. Exemptions may apply.

  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 0% Offshore Income Tax Rate
  • 22% Corporate Tax Rate
  • 22% Capital Gains Tax Rate
  • 10% Dividends Received
  • 0% Dividends Withholding Tax Rate
  • 0% Interests Withholding Tax Rate
  • 0% Royalties Withholding Tax Rate
  • 0 Losses carryback (years)
  • 10 Losses carryforward (years)
  • FIFOLIFOAverage cost Inventory methods permitted
  • 46.5% Personal Income Tax Rate
  • 6% VAT Rate
  • 0 Tax Treaties

Country details

Curacao
ANG
Willemstad
North America
Dutch (Standard), pap
141,766

Curaçao, known officially as the Country of Curaçao, is a small autonomous country that is part of the Kingdom of the Netherlands. It is situated in the southern Caribbean Sea, within the Lesser Antilles and it covers an area of approximately 444 square kilometers. It is located approximately 65 kilometers (40 miles) to the north of the Venezuelan coastline. Along with Aruba and Bonaire, it forms the ABC islands. Collectively, Curaçao, Aruba, and other Dutch islands in the Caribbean are often called the Dutch Caribbean. Curaçao is the biggest island among the ABC islands and the largest in the Dutch Caribbean, both in size and population. Its capital city is Willemstad, a vibrant hub of commerce, and the official languages are Dutch, Papiamentu, and English. The official currency is the Antillean Guilder (ANG), which is also known as the Florin. The exchange rate for the Antillean Guilder is fixed at 1.80 ANG for every 1 US Dollar (USD).

The history of Curaçao is a tale of exploration, colonization, and resilience. The island was initially inhabited by the indigenous Arawak people and later came under Spanish and Dutch control. In the 17th century, it became a center for the transatlantic slave trade. Today, Curaçao's cultural mosaic is shaped by African, European, and indigenous influences, creating a unique blend of traditions and customs.

Curaçao is a constituent country of the Kingdom of the Netherlands, and its governance takes place in a form of a parliamentary democracy system led by a Prime Minister. While the Dutch monarch, currently King Willem-Alexander, is the head of state, the island enjoys a high degree of self-governance. Executive power is exercised by the government. Legislative power is vested in both the government and parliament. Curaçao has full autonomy over most matters; the exceptions are outlined in the Charter for the Kingdom of the Netherlands under the title "Kingdom affairs".

Curaçao's political landscape is characterized by stability and a strong commitment to democratic principles. The island actively participates in democratic processes, with regular elections and a multi-party system.

Curaçao maintains diplomatic relations with countries around the world and is a member of various international organizations. It collaborates with the Kingdom of the Netherlands on foreign affairs matters, benefiting from shared resources and representation on the global stage.

Curaçao's economy has evolved significantly over the years, diversifying beyond its historical role in oil refining, oil storage, and bunkering. The island has become a hub for international trade, financial services, and tourism.

The stable financial services sector and attractive tax framework, drawing foreign investments and businesses to establish a presence on the island. The banking and insurance industries are thriving, serving both local and international clients.

Services

We can help you incorporate a Besloten Vennootschap met beperkte aansprakelijkheid in Curacao for $4,800.


Click here to incorporate your Curacao BV.

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