What is an SPF and what are the advantages?
SPF stands for “Private Foundation”. This is a legal form that does not exist in the Netherlands and was established to keep Curacao attractive as a financial center. A major difference is that an SPF may make distributions to the founder(s) or third parties. The SPF may not do business for profit, though, it is true that the legislator operates as an investment company or holding company does not see as a matter of business.
The legal SPF is used to include the following: the holding of shares in a Dutch BV as a tool for ‘parking’ property, the secrecy of the beneficiary of the SPF, evading the duty to financial publication.
A major advantage of this legal form is that no income tax is paid, and also a gift from the SPF is free of gift tax. Equity infusions and non-resident of the West Indies are also exempt from gift tax.
An SPF is founded by a notarial deed and registration at the Chamber of Commerce. The deed must contain the necessary statutes. The SPF should be led by a resident in the Netherlands Antilles, this need not be a natural person, but can also be a trust company.
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What do tax regulations on business/investments in Curacao look like?
A number of schemes at a glance
- There is a voluntary disclosure scheme
- No import duties on certain ‘green’ products
- Curacao meets the main requirements of the U.S. IRS
- The CRB scheme for shareholders resident in the Netherlands Antilles / entities that have at least 25% of the shares in a Dutch holding company.
- Residents of the island pay tax on their total income, including income from abroad. Non-residents pay tax only on income from sources in Curacao.
- The rate of import taxes varies depending on the product of 0% – 22%