Investing in Curacao can offer you tax-friendly benefits. In 1998, the Private Foundation was introduced on Curacao. This is a special form of the regular foundation. The difference is that a Private Foundation may have its statutory object of investment of capital, including real estate and holding an interest in another legal entity, as long as it is not running a business. In contrast to a regular foundation, the Private Foundation is allowed to make a profit.

Because there is no distribution restriction, as is the case with a regular foundation, the person who transfers the assets to the Private Foundation may make distributions to himself or to family members. The Private Foundation is fully exempt from corporate income tax.

The difference with the American trust, which is a legal relationship from which separate assets arise, is that the Private Foundation is a legal entity with its own assets and can therefore be a party to a legal merger or demerger. This also means that the Private Foundation becomes the legal owner of all the capital contributed. The usufruct of the capital accrues to the person who contributes the capital or to a beneficiary appointed for that purpose. For this reason, the Private Foundation is also used for estate planning. To guarantee privacy, the Private Foundation is usually established and managed by a trust company.

If you are interested in the tax benefits that investing in Curacao offers, we will be happy to inform you further or put you in direct contact with our cooperating partners.