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  Investment Incentives
  In order to attract investment in certain sectors, the Netherlands Antilles provides clearly stated incentive schemes for four sectors - hotel, manufacturing, land development and e-commerce (see Table below). In addition, tax incentives are also available for "selected" business entities. Since the fifth category is not sector-specific, in reality, fiscal incentives are available to businesses operating in any sector. This provides ample room for the government to operate at its discretion.

The following table summarizes the incentives provided for each sector.

Fiscal Incentives for Sectoral Promotion

  Hotel Manufacturing Land Development e-Commerce Others
Criteria Limited liability
company
Limited liability company in non-oil sector Limited liability
company
First need to be admitted to the economic zone area  
Minimum
investment
requirement
US$550,000 (if renovation, US$165,000) US$137,500 US$1,100,000
excluding the
value of the land
  US$137,500
Other
requirement
  Create at least 5 permanent jobs Investment needs to be made within 5 years of the date of the Central
Decision
  Create at least 5 permanent jobs to persons born in the NA
Corporate tax   2% for maximum of 11 years   2% till December
2025
2% for a period of 11 years
Other tax     2% on the profit
obtained by the
sale of developed
land for maximum
of 15 years
Exemption of turnover tax and excises  
Exemptions of import duties on materials and goods required
for construction
and initial
furbishing of the
hotel's premises
(in case of renovation, exemption is for two years)
on materials and goods required for
construction and initial equipment of
the industry's premises, as well as packaging material, machinery,
raw materials, semi-manufactured
articles and accessory means
necessary for the industrial process
on materials and goods intended for
the laying out of roads, on construction of real estate and on the laying out or
construction of locations for amusement purposes
Exempted On materials and on goods required for construction
and initial capital equipment (includes expansions) of the business' premises. In addition, exemption from import duties for a period of 10 years at the most on raw materials and semi-manufactured
articles, as far
as these components are processed by the company.
Exemption of
land tax
On hotel's premise for 10 years after becoming taxable On the industry's premise for maximum 11 years after becoming taxable, but no later than 2009 As long as the plots of land, which are being developed, are not let out   On the business' premises for 10 years after becoming taxable
Exemption
of occupancy tax
On the use of the hotel's land for 1 year after the start-up of the hotel On the use of the industry's land for maximum of 11 years, but not later than 2009 Due to the use of the company's plots   On the use of the business' land premises, after becoming taxable
Exemption from personal income
tax
On income earned from dividends and other distribution of profits within two years after the fiscal year in which the profit was obtained On income earned from dividends and other distribution of profits within two years after the fiscal year in which the profit was obtained On income earned from dividends and other distribution of profits within two years after the fiscal year in which the profit was obtained Employees who lived outside the NA for more than 5 years can qualify for an expatriate status On income earned from dividends and other distribution of profits within two years after the fiscal year in which the profit was obtained
Foreign exchange
license fees
      Upon request, the Central Bank will grant an exemption from the payment of foreign exchange license fee charges for merchandise transactions  

Other Incentives are available to foreign investors including reduced rent of up to 40 per cent for buildings in the free zone (e-zones, see above); duty free building materials, machinery and equipment; an annual investment allowance of 8 per cent on the total investments for the first two financial years; unlimited use of carry-over losses incurred over the first four years of the company's business. A business Development Scheme is available to provide export assistance. Financing assistance is available through OBNA and Korpodeko and trade agreements with the EU and USA are established.

Free trade zones (e-zones) are located at the harbor at Curaçao, the international airport and the Industrial Park. The free zones are secure and permanently maintained. They are a distribution center for export to the Caribbean, Americas and the EU. Products for export to the USA and EU are admitted without charge. There is no customs duty imposed for imports, transshipment and/or export of goods. Twenty five percent of total sales may be made to the local market.