Synopsis

Curacao lies in the Southern part of the Caribbean, less than fifty miles north of South America and has a population of approximately 160,000. The capital of Curacao is Willemstad which is in the main finance centre and seat of Government. Curacao forms part of the Kingdom of the Netherlands, and is therefore an associate member of the European Union. However, Curacao has full internal autonomy with a parliamentary democracy based on the Netherlands.

Curacaos' main sources of income are considered shipping, tourism and financial services, with excellent communications and air services in place to support this. he local currency is the Guilder, fixed to the US dollar at the rate of US$1: Nafl1.78, The standards of living on Curacao is considered amongst the highest in the Caribbean. The official language is Dutch however; English and Spanish are widely spoken in the business community.

The islands ideal geographical position with its close connectivity and relationship to Europe, its stable political, legal and financial environment make Curacao the ideal financial and logistical focal point for doing business.


  The Foundation

Curacao Private Foundation (also known as: "SPF") is a private foundation that was introduced to offer an alternative to the Anglo Saxon Trust. It is very popular in estate planning and for holding and portfolio investment activities.

The SPF is subject to a minimum of formalities and is a flexible solution with the main characteristics summarized below.

• The SPF may not conduct a business. However, portfolio investments and holding activities are not considered an enterprise for these purposes.
  
  
• The SPF is, like other foundations, a separate legal entity that can own assets and incur liabilities.
  
  
• An SPF does not have shareholders or members.
  
  
• Unlike a common foundation, the SPF can make non-idealistic and non-charitable distributions to the incorporators or to others out of its income or out of its assets.
  
  
• Beneficiaries do not have to be appointed if such appointment is not desired.
  
  
• Beneficiaries can be appointed/designated in the Articles of Incorporation in very general or very specific terms. The purpose clause could for instance only authorize the foundation to make gifts as and when the advisory board considers this appropriate.
  
  
• There are no audit or filing requirements regarding the annual accounts.
  
  
• The SPF is exempt from Netherlands Antilles profit and dividend withholding tax and is only subject to limited tax filings (generally one profit tax return per 5 years).
  
  
• No Netherlands Antilles gift or other taxes are levied when contributions are made to the SPF by non-Netherlands Antilles residents and/or when distributions are made by the SPF.

• Asset protection
  
• Holding of shares
  
• Deferral of income
  
• Minimizing wealth taxes
  
• Preservation of family assets
  
• Estate planning
  

A private foundation is governed by its foundation charter, its regulations and by the provision of The National Ordinance of October 19, 1998 and it should be noted that:

  Initial Patrimony Or Capital Of The Foundation

The foundation must have an initial patrimony of at least US$ 10,000, which shall be used only towards the purpose and objectives expressly provided for in the foundation charter.

The Founder

The founder, who can be either a natural person or a body corporate, organises or creates the foundation. The founder appoints officers and/or the founding members of the foundation council as well as nominating the beneficiaries of the foundation. Typically, the founder will be a nominated party resident of Curacao, who will be specified in the foundation charter.

The Foundation Council

Private foundations may have a foundation council, which is the administrative body of the foundation or alternatively, may just appoint officers to act . These parties can be compared with the board of directors of a normal company and to help the foundation to fulfil and achieve all of the foundation’s aims, objectives and purposes, as set out in the foundation charter or in the regulations.

The Beneficiaries

The beneficiary, or beneficiaries, are those that benefit from the private foundation. As the charter need not be registered on public file, the confidentiality or anonymity of the beneficiaries can be achieved.

Taxation

There are no direct taxes such as income tax, corporation tax, capital gains tax, profit tax, gift tax or death duties. Foundations pay a flat rate filing fee to maintain the good standing of the foundation and penalties are imposed for the late payment of this fee.

Timescale

A Foundation can be registered within five working days but you should allow 4 days for us to receive the paperwork to be forwarded from the Caribbean.

Restrictions on Name and Activity

Foundations can be established for all lawful objects and the name should include the word “Private Foundation”. Words such as Bank, Insurance, Reinsurance or Trust cannot be used in any language.

Registered Office

There is a requirement for a registered office to be maintained in Curacao, together with a Resident Agent.

Feel free contact us at info@sadekya.com for more information on how we can help you realize these benefits.