Curacao offshore company - one of the classic offshore companies
Over the past few years, Curaçao offshore has become one of the most stable countries in the Caribbean, which has attracted a large number of foreign investors, thereby making an offshore company in Curaçao a daily occurrence.
Offshore jurisdiction Curaçao offers a wide range of business activities that can be performed in several industries.
Curacao offshore company - e-Zone company, established in a geographical area designated as an economic zone, is subject to income tax of 2%. The free zone is an attractive option for companies doing business in the international market and engaged in the import and export of goods, processing of goods, trade, warehousing services, repair services and technical services performed abroad or in Curaçao.
Classic Offshore Curacao - Economic Zone
In 2001, the offshore Curaçao (part of the Netherlands Antilles) then adopted legislation on the zone, which offers a favorable fiscal structure. The goal of economic zones (e-zones) in Curaçao is to promote the jurisdiction of both the international business center, the international distribution center, and the international e-commerce center.
Curaçao has two different types of economic zones. On the one hand, you have special zones in which goods can be stored, processed, collected, packaged, produced and sold. On the other hand, you have special areas where international trade and its ancillary services can be performed, provided that this activity is supported by electronic communication and electronic information equipment.
There is no requirement to store the goods you sell online in the electronic zone, which means that online sales and distribution of goods can be completely separated. A large group of entrepreneurs who use the E-zone in Curaçao actively participate in the World Wide Web through online sales of goods and services. To convince entrepreneurs to invest in Curaçao, the E-zone legislation contains some attractive features.
Curaçao Offshore Jurisdiction - Taxation 2%
E-zone company provides an opportunity to use, in all openness, taxable income in the framework of electronic commerce activities. The legislation of the economic zone clearly states that the corporate income tax rate is fixed at 2% until the end of 2025. In particular, E-zone companies pay 2% tax on their profits and are exempt from turnover tax, import duties, export duties, sales tax and excise taxes.
The administration of the company is to be held in the offshore jurisdiction of Curaçao. A local accountant must be appointed to prepare financial statements and file a company tax return.
Taxable income is determined in the same way as taxation in the EU. In addition to 2% of corporate income tax, E-zone does not pay taxes in Curaçao, unless E-zone uses customs. Curaçao also does not levy a dividend tax, which is distributed to shareholders of a company in an economic zone.
After the company is registered, the Chamber of Commerce in Curaçao will complete the application process, and a request for a CRIB number (tax registration number) can be made. While the license is still pending, the company can already begin operations. As mentioned earlier, these activities should target foreign markets through electronic communications and infrastructure (that is ideal for e-commerce companies).
Curacao Offshore Company - Registration Rules
The conditions that must be met to obtain a license of the economic zone, valid until January 1, 2026, are as follows:
• Creation of a company in Curacao.
• Opening a company bank account at a bank in Curaçao. Additional bank accounts can be opened elsewhere with our help;
• Company registration in the economic zone. Thus, a (small) physical office in the economic zone should be leased by the company.
• Managing a Curaçao company by local directors.
The company's goal is to comply with the rules and regulations of Curaçao. Doing business with other E-zone companies is allowed, and if a company in an economic zone wants to do business with a domestic company, Curaçao, approval is required from the local Department of Economic Affairs.
In the latter case, profits derived from the sale of goods or services to these domestic companies will be taxed at the standard tax rate of 34.5%.
For any questions regarding the offshore company in Curaçao, please contact us!