You may have already heard of the Pension Regulations, also called Penshonado Regulations.
The Pension Regulations is a tax incentive for you as foreign retiree whose tax residence Curacao takes to enjoy your retirement.
This regulations provides a special tax on the foreign income that you receive as a pensioner. If you meet all the conditions, your foreign income, including dividends and interest are taxed at a rate of only 10%.
The new Pension Regulations since 1 January 1998 and, like the old regulation, created to encourage wealthy foreigners moving to Curacao. This is due to the positive impact on the local economy.
There are conditions that you must meet to qualify for the regulations. These are:
- You have not lived on Curacao for past 5 years;
- You have a minimum age of 50 years;
- You are registered with the Registry of Curacao (Kranshi) and actually lives on the island;
- Within two months of registration with Kranshi you must inform the Tax Administration of Curacao that you wish to be taxed in accordance with the Pensionado Regulations;
- Within 18 months after enrollment at Kranshi you must have purchased a home in Curacao of a min of Nafl. 450,000.00 to live in;
- You should not be working in Curacao. You may, however director of a company, if you owned 40% of the shares of that company. Any income from this work will be taxed in accordance with the normal tax rate Curaçao.
It is important that the application and the subsequent procedure is exactly according to the rules. We advise you to take a professional in hand to make the application for you in order. Ask our professionals for more information about this.
