Tax Advantages When Investing in Curaçao

Investing in Curaçao offers significant tax-friendly benefits for international investors. A key vehicle for this is the Private Foundation (known locally as the Stichting Particulier Fonds or SPF), introduced in 1998. This unique legal entity is specifically tailored for capital investment and asset protection.

How the Private Foundation Works

The SPF differs from a regular foundation in several important ways:

• Investment Focus: An SPF can hold and invest capital, including real estate and interests in other legal entities, provided it does not engage in active commercial business.
• Profit Allowed: Unlike traditional foundations, the SPF is permitted to generate a profit from its investments.
• Flexible Distributions: There are no distribution restrictions. The individual who transfers assets to the SPF can make distributions to themselves or their family members.

Tax Exemption and Estate Planning

The most compelling advantage is that the SPF is fully exempt from corporate income tax. Furthermore, it serves as an excellent tool for estate planning.

Unlike an American trust—which is a legal relationship—the SPF is a separate legal entity that holds legal ownership of all contributed capital. This allows for seamless transitions of wealth, where the usufruct (the right to enjoy the assets) remains with the contributor or designated beneficiaries. To ensure total privacy and compliance, SPFs are typically established and managed by professional trust companies.

If you are interested in the tax advantages of investing in Curaçao, we are happy to provide further information or put you in direct contact with our expert legal and financial partners.