Curacao Taxes: A Breakdown for Individuals and Businesses
A balanced overview of the Curacao tax system, covering the financial obligations and advantages for resident individuals and operating companies.
Curacao is an autonomous country within the Kingdom of the Netherlands with its own distinct tax laws. This framework governs the financial obligations for individuals and businesses on the island and is separate from the tax system of the Netherlands.
Determining Tax Residency
An individual’s tax residency in Curacao is based on a collection of facts and circumstances. The primary determinant is where a person’s “center of vital interests” is located, which considers factors like family, social, and economic ties, and the availability of a permanent home. Physical presence is also considered, though no strict day count automatically confers residency.
For corporations, tax residency is established if the company is legally incorporated under Curacao’s laws. Alternatively, a company is deemed a resident if its place of effective management and control is on the island.
Personal Taxation
Resident individuals in Curacao are subject to taxation on their worldwide income. This includes income from employment, profits from a personal business, and returns from investments. Non-residents, conversely, are only taxed on income that originates from specific sources within Curacao. The personal income tax system is progressive, with 2025 rates beginning at 9.75% and increasing to a maximum of 46.5% on income exceeding ANG 154,867.
A feature of the personal tax system is the “Pensionado” scheme for foreign retirees. To qualify, an individual must be at least 50 years old, not have been a resident for the five years prior, and receive foreign pension or investment income. Applicants must inform tax authorities of their intent to use the scheme within two months of registering. Under this program, an eligible person can elect to be taxed on foreign-source income at a flat rate of 10% or at standard rates on a deemed taxable income of ANG 500,000.
Business and Corporate Taxation
The standard corporate income tax, referred to as profit tax, is applied at a progressive rate. The rate is 15% on the first ANG 500,000 of taxable profit and 22% on profits that exceed this amount. Curacao’s tax system uses a territorial basis, meaning corporate tax is primarily levied on profits from domestic sources. Profits generated from activities outside the country can be excluded from the taxable base. Curacao is also set to introduce a minimum corporate tax rate of 15% for multinational corporations with annual revenues of at least EUR 750 million.
Curacao offers the Economic Zone (E-Zone) regime for international business. Companies in a designated E-Zone engaged in international trade or services benefit from a reduced profit tax rate of 2%. To qualify, these companies must have a physical presence in the zone and derive no more than 25% of their total turnover from business with companies in Curacao’s domestic economy.
Other Significant Taxes
Beyond income taxes, several other taxes apply to transactions and assets in Curacao. A turnover tax, known as Omzetbelasting (OB), functions as a sales tax on the delivery of goods and services. The standard OB rate is 6%, with other rates of 7% and 9% applying to specific categories. For instance, the 9% rate is often applied to imported goods.
Owners of real estate are subject to an annual real estate property tax. This tax is levied on the property’s value at progressive rates: 0.4% on a value up to ANG 350,000, 0.5% on the portion between ANG 350,000 and ANG 750,000, and 0.6% on the value exceeding ANG 750,000.
Both employers and employees are required to make contributions to the country’s social security system, which fund programs like pensions and health insurance.