The Curacao Trust

 Gift Tax

• 25% gift tax applies to gratuitous transfers by Curaçao residents to local trusts. 
• No tax applies if the transfer is not a donation.  
• Distributions from the trust to beneficiaries are exempt from gift tax regardless of where they live.

Income Tax

• One-time or recurring distributions to Curaçao residents may be taxed at a flat rate of 19.5%. 
• Non-residents receiving distributions from a Curaçao trust are not taxed in Curacao.
• Residents of the Netherlands who contribute assets to a private foundation may trigger  income tax in the Netherlands if the private foundation is deemed a so called Separated Private Assets (APV) for dutch income tax purposes.
   

Profit Tax

• A trust is only liable for profit tax if it runs a business. 
• Passive trusts (asset-holding or investing) are not subject to profit tax, however the trust is required to submit a profit tax retun on an anual basis.
   

Turnover Tax (Sales Tax)

Turnover tax could be triggered if the trust runs a business.
 

Transfer Tax

• No transfer tax applies if the settlor is also the trustee. This is officially recognized by Curaçao’s Ministry of Finance (7 October 2014 ruling).