Curaçao is one of the best known and most interesting destinations in the Caribbean. Its membership of the Kingdom of the Netherlands gives it several advantages and characteristics similar to any other European country, combined with the traditions, customs, and the great cultural mix of different histories that have come together in this small enclave.

This small island has in recent years become one of the most stable economies in the Caribbean region, which has made it a focal point for businessmen and investors from all over the world. Curaçao combines favorable and open policies for foreign investment with remarkable natural beauty, typical of the Caribbean, which can be exotic and more than appealing to Europeans and to anyone unfamiliar with this part of the world.

When it comes to business, Curaçao is a very attractive place, which grants great advantages and facilities to those who wish to invest there. In a nutshell:

Curacao is fully whitelisted Moreover, its administration systematically condemns and acts against money laundering, promotion of terrorism, and other illegal activities, a good work recognized by the Organization of Economic Cooperation and Development (OECD) and the Caribbean Financial Action Task Force on Money Laundering, so you can be sure that your funds are entering a favorable and safe environment. In a nutshell:

- There are a great variety of markets that are in constant expansion and development due to all the economic policies granted such as the “E-Zones”.

- Curaçao is also classified as an Overseas Country and Territory, which means that all products originally manufactured there have preferential access to the European Union.

- The registration of a company as a legal entity has an estimated cost of ANG 6.629 (US$ 3.680)

- Curaçao has a flat corporate tax rate of 22% but Curaçao's tax system grants reductions from 22 to 3% for domestic activities.

- Only corporate income earned within Curaçao will be considered taxable.

- VAT on this Caribbean island varies between 6 and 9%.

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Why Curaçao?

Besides the great natural and political attractions that Curacao offers, there is a long list of reasons to relocate or do your next business on the island. For example, it has one of the most stable working environments in the Caribbean region, as well as a skilled and multilingual workforce.

In addition, during the last decades, they have opened a great variety of markets that are in constant expansion and development due to all the economic policies granted by the Curaçao administration, not to mention the existence of "E Zones", which among other benefits, grant enormous fiscal advantages.

Curaçao is also classified as an Overseas Country and Territory, which means that all products originally manufactured there have preferential access to the European Union, a key point in the financial operations of this island due to its proximity to the Netherlands.

This island has a wide range of advantages, facilities, and incentives to promote foreign investment, in fact, it is one of the most popular destinations for offshore companies, given the ease that the Curaçao administration grants for their creation and maintenance.

A very important aspect among all of this is that they have one of the most developed telecommunications infrastructures in the Caribbean, with a fast and stable internet connection, which greatly favors the management of offshore companies and other administrative procedures.

In Curaçao, the options and fields for investment are varied. This small island, lacking large natural resources to exploit and market, has dedicated itself to becoming an attractive destination for others. Since its formation as an autonomous republic in 2010, it has not ceased to develop its business system, with the aim of making it increasingly attractive and competitive.

The main fields in which it is possible to become an investor are as follows:

- Financial institutions

- Technology development

- Renewable energy and manufacturing industry

- Storage

- Tourism

How to set up a company in Curaçao?

Although there are different types of companies and businesses that you can start as an investor in Curaçao, the procedures and requirements are mostly similar and relatively simple.

Through different laws and programmes aimed at favoring and promoting foreign investment, there are no differences between the requirements for investors from inside or outside the island. The same regulations apply to all.

To find out how to start your next business, you can count on our support and that of our team of experts, but we also present some of the documents you will need to submit to the Curaçao administration:

- A completed application with details of the preferred company name, type of business, details of the founding directors and shareholders (citizenship, country of residence, address, profession, etc.). It is also necessary to report the estimated annual turnover of the company and the source of funds.

- Notarized copy of passport or other acceptable identification documents (photo and signature pages).

- Beneficiary's summary of the business (personally signed), demonstrating the beneficiary's experience in this business.

- Proof of address (utility bills).

- Notarised copy of the utility bill or bank statement to confirm the residence address.

In Curaçao, the registration of a company as a legal entity has an estimated cost of ANG 6.629 (US$ 3.680) and the total capital can be represented in any hard currency

Taxation.

Curaçao has a flat corporate tax rate of 22%. This may sound a bit high and perhaps worrying, however, this small Caribbean island has attractive exemptions and deductions for its tax burden. Curaçao's tax system grants reductions from 22 to 3% for domestic activities related to warehousing services, investment funds, construction and repair of aircraft and cargo ships, and data centers supporting different businesses.

Plus, since January 2020, only corporate income earned within Curaçao will be considered taxable. This is already more than attractive, which explains why this Caribbean paradise has become one of the main bases for offshore companies in recent years.

But there is more. We have already mentioned the so-called "E-Zones" and how they have contributed to making Curaçao an important international business center. 

However, the main advantage of setting up a business in these zones is the unique 2% tax rate on business income. The investor is only required to own a "mother company" in the Netherlands that receives the remaining 98% of the income and distributes or reinvests it without further tax charges. If this has not convinced you how good it is to set up a business in Curaçao, nothing will.

In Curaçao, any company that generates dividends from the sale of products or the provision of services must pay sales tax. VAT on this Caribbean island varies between 6 and 9%. This is certainly one of the lowest rates in the world.

Type of companies

Curaçao has an extensive list of companies to consider for starting your next business. Each type is best suited to what you are looking for. Our team of experts will be at your disposal when you contact us to provide you with all the support you may need. Without further ado, let's take a look at the types of companies you can set up on this island:

Public Limited Liability Company (N.V): This is the most popular for both domestic and offshore companies. If you are interested in this type of company, there are a few things you should know:

- You will need a business license and a managing director's license from the Social and Economic Planning Office. It has a duration of 1 year (renewable).

- There must be at least one shareholder and one director (a managing director must reside in Curaçao).

- The N.V. must have an approved capital of at least ANG 50,000, of which 20% must be paid up at the time of incorporation and must remain so.

- The company must be maintained at the domicile of an authorized management company.

Private Limited Liability Company (B.V): This is a flexible form of company. It can be organized in such a way that it is run by the shareholders. This "shareholders' meeting" acts as a board of directors, taking all relevant decisions and also facilitating the management of the company. For this type, you should know that there are no minimum capital requirements, the shares may or may not have a nominal value, voting rights, or participation rights.

Partnerships: According to Curaçao law, there are 3 types of partnerships:

- Public partnership performs business acts externally for clearly identifiable third parties under a recognized name. In the country, this company is called "Openbare Vennootschap".

- Silent Partnership: Called "Stille Vennootschap". These do not carry out any business or engage in any transactions.

- Limited Partnership: A distinction is made between limited partners and general or managing partners and is called "Commanditaire Vennootschap" (CV). The general or managing partners manage the affairs of the VC and represent it vis-à-vis third parties. They are jointly and severally liable for the debts arising from the VC's business.

Sole proprietorship: In this type of company there is no distinction between personal and business resources. This means that all assets and resources related to the property constitute the income and expenses of the owner. As an owner born outside Curaçao, you will need a license to open this type of company.

Foundation (Stichting): This is the civil law equivalent of the common law trust, although, unlike a trust, a Stichting has a legal personality. Originally set up for welfare purposes, it is now often used to act as a trustee or asset manager for a third party or to control shares in companies. Shareholders receive participation certificates in exchange for the shares transferred to the Stichting and may receive dividends.

FAQ Section

If I want to invest in another area other than the ones mentioned in Curaçao is it possible?

Yes, for example sectors such as e-gaming and real estate are also allowed. Contact our team for more details.

Is the corporate tax rate mandatory at 22%?

No. Although by law it is 22%, certain conditions apply and it can be reduced to as low as 3%.

Can my capital be in a currency other than ANG?

Yes, as long as it is a solid currency such as the US dollar or Euros.

Can my company be in an investment fund?

Yes, they are accepted in Curaçao.

What MUNDO can do for you?

Curaçao has proven to be a very attractive destination for your next investment. Its great natural and cultural attractions are combined with a business infrastructure worthy of envy, connected to large and growing markets.

This paradisiac island is one of our favorite jurisdictions. Besides the creation of companies, our experts can offer you the following services:

- Asset management

- Investment advice

- Trading on the Dutch Caribbean Securities Exchange (DCSX)

- Creating a company 

- Setting up an account

- Getting financial licenses (including gaming licenses)

Here at Mundo, we are committed to your growth and business development, and that is why our experts are ready and waiting for your call, to help you with everything you may need to start your business in this Caribbean paradise. Contact us today!

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