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  Pensionado Status
  Since 1987 (with amendments in 1997) the Netherlands Antilles offers a favorable personal tax regime for retired people. The regime is available on the following conditions:

The "penshonado" should be at least 50 years old on the date that he registers himself as a resident;
The pensioner should not have lived in the Netherlands Antilles in the five years before making the application for'penshanado' status;
The pensioner must own a house in the Netherlands Antilles with a value of at least NFl 450.000 (US$253.000) for his personal use and available to him within 18 months after his registration as a resident;
The application for favorable tax treatment must be filed within two months after registration as a resident;
The "penshonado" has to provide employment to at least one employee for not less than 30 hours per week.

A "penshonado" may choose between two tax regimes:

Worldwide income, not derived from business or employment within the Netherlands Antilles, including pension-rights of which at least 70% are externally funded, can be taxed at a flat 10% rate; or
All foreign income will be fixed at NFl 500.000 (US$281.000) and taxed at the normal progressive rates, which amounts to an effective tax of NFl 271.000 (US$152.000).

Foreign income is considered to be all income from a foreign source, including non-resident (so called "offshore") companies established in the Netherlands Antilles, all income from savings at local banks; and the rental-value of the house owned by the penshonado.

"Local" income is all income that the penshonado receives from employment in a company established in the Netherlands Antilles in which he owns 40% or more of the capital stock and/or income obtained as a director or officer of a company and/or income received from bonds issued by a local company. Local income is taxed at the normal tax-rate for local citizens. The penshonado may not enter into employment with a company in which he does not own at least 40% of the capital-stock.