Investeringen
The Netherlands Antilles have an attractive tax legislation for non-local pensioners taking up residence in the NA. For more then a decade now, a group of several hundred "pensio-nado's" spends the larger part of the year under the Caribbean sun, and benefits from the financial attractions of being a Netherlands Antilles resident. In the beginning of this year, the pensionado community in Curacao has taken the lead in promoting the many benefits of retiring on the island.
This issue of the Update will be dedicated to the attractions of retiring in the Netherlands Antilles. We will, of course, limit ourselves to the financial aspects. Aspects relating to the quality of life we leave to the reader's imagination, or better, to the existing pensionado's. Please contact us if you want to get in touch with the Pensionado task force.
The Benefits
A 10% tax rate is applicable to all foreign source income. The following types of income qualify as foreign source income:
- Income from a current or former employment outside the NA
- Profits derived from an enterprise outside the NA
- Income from real estate located outside of the NA
- Income from mortgage on real estate located outside of the NA
- Revenue from bank deposits and other receivables
- Revenue from shares in companies resident outside the NA
- The share in the profit, other than as a shareholder, of companies resident outside the NA
- Capital gains derived from the sale of substantial shareholdings in companies resident in the outside NA
- Annuities received from parties outside the NA
- Lump-sum payments out of a life insurance policy from parties outside the NA
The normal progressive tax rate (57,2% maximum) applies to salaries earned as a director of a company resident in the NA. Alternatively, a lump-sum tax of approximately USD 150,000 can be paid, but then the pensionado cannot claim the benefits of the double tax arrangement between The Netherlands and the NA.
The Conditions
The pensionado will be subject to inheritance tax and gift tax in the Netherlands Antilles. Both of these taxes have identical rates, which depend on the degree of kinship.
- Spouses and children 2% - 6%
- Parents 3% - 9%
- Brothers and sisters 4% - 12%
- Nephews and nieces 6% - 18%
- All other 8% - 24%
Former Dutch residents
For pensionado's coming from The Netherlands it is important to know that the favorable Antillean inheritance tax is applicable immediately upon immigration. The NA gift tax applies after 12 months. The NA is the only country for which this term is so short.
The double tax arrangement between The Netherlands and the NA allows The Netherlands to continue to tax certain types of income from Dutch sources. These types include pension from government service, dividends from companies resident in The Netherlands and income from real estate located in The Netherlands.
In addition, a "conservatory tax" is levied on certain forms of unrealized income existing at the moment of emigration. The conservatory tax only becomes effective if, within ten years after emigration from The Netherlands, the substantial shareholdings is sold and the capital gains are realized, or if within the same ten-year term certain life insurance products are redeemed, such as pensions.
Should you require more information about the tax benefits we will be pleased to refer you to a knowledgeable tax advisor.
Source MCB-Bank
