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1

• Doing Business and Investment Opportunities in
  CURAÇAO
• Arthur Rosaria
• Executive Director
• Development Bank of Curacao

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Presentation Outline

• Investment climate
• Sector opportunties
• Project Opportunties
• Legal, Finacial, Regulatory system
• Incentives
• International presence
• QA

• Curacao at a glance
• Economy
• Economic Data
• Infrastructure
• Historical facts
• Why Curacao
• Comparative Advantages
• Advantages to Investors
• Strategic positioning

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Curacao at a glance

• Partner in the Kingdom of the Netherlands
• Main economic sectors include Tourism, Oil
  refinery, International Financial Services,
  Logistics
• Two levels of government
• Stable political climate Court in the Hague is
  last resort
• Unique history
• 140.000 population
• Southern Caribbean in front of the coast of
  Venezuela

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Curacao at a glance

• 444 km2 /182 square miles
• Dutch is the official language, Papiamentu is the
  native language, English and Spanish are widely
  spoken
• Currency is the Antillean Guilder and is pegged
  to the US Dollar. Exchange rate is 1 US NAF.
  1,82

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Economy in 2006

• Real GDP 1.3
• Inflation 3.1
• Population 1.9
• Unemployment 14.7
• Youth unemployment 37.6

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Tourism indicators

• Stay over tourists 5.5
• Cruise tourists 16.4

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Location
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Why Curacao

• World Class Financial Services
• Attractive investment incentives
• Well equipped infrastructure

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Comparative advantages

• Deep sea water ports
• Culture and sophistication
• Business Center
• Dutch based legal system
• Internationally oriented Education
• Sophisticated Tourism
• Cultural advantages

• Access to the EU market
• Multilingual workforce
• Sophisticated financial services sector
• Friendly environment and high quality of life
• Brand new airport
• Close to South America

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Infrastructure

• Power and Water
• Telecommunication
• Ports
• Road
• Postal services

• Educational institutions
• Medical care
• Refinery
• New and modern airport

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Investment climate

• Open to investment
• Modernization of legislation
• Privatization process
• Strategic alliances

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Sector Opportunities

• Business Services
• Education
• IT/E-commerce
• Telecommunications
• Call centers
• Residential and Commercial buildings

• Tourism
• Arts Culture
• Entertainment
• Transshipment logistics
• Refinery
• Medical
• Recreation

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Curacao in International perspective

• International tax arrangement / treaty
• Between The Netherlands, The Netherlands Antilles
  and Aruba
• Between The Netherlands Antilles and Norway,
  Australia, New Zeeland
• Negotiations started with Trinidad, Barbados,
  U.S.A., Venezuela, Chile, China, Jamaica

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Taxation in Curaçao

• Curaçao has the following taxes
• profit tax, income tax, turnover tax, import
  duties, excise tax, real property tax, stamp tax,
  inheritance and gift tax, property transfer tax,
  foreign exchange commission
• Curaçao does not have the following taxes
• net wealth tax, withholding tax on dividends,
  interest (under conditions), royalty payments or
  a capital tax
• 
  
  

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Tax facilities

• Tax holiday hotels and other recreational
  businesses, manufacturing, land development,
  e-zone (including e-commerce) and other business
• Investment deduction arrangement
• 8 purchase existing building
• 12 new building acquired pr existing improved)
• Accelerated depreciation

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Hotels

• To qualify a limited liability company should
  invest USD 550,000
• 2 Corporate tax -including surcharges- for a
  period of 11 years at the most
• Exemption from import duties when in construction
  (includes expansions) and initial furbishing
• Exemption from land tax (10 years) on the hotel's
  premises after becoming taxable
• Exemption from occupancy tax on the use of the
  hotel's land for a period of 10 years starting
  after start-up
• Exemption from personal income tax on income
  earned from dividends and other distribution of
  profits within 2 years after the fiscal year in
  which the profit was obtained.

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Export manufacturing

• To qualify a limited liability company should
  invest USD 550,000
• 2 Corporate tax -including surcharges- for a
  period of 15 years at the most, if exports are
  90
• Exemption from import duties (including levies)
  on materials, on goods required for construction
  (includes expansions) and initial equipment, as
  well as that which is necessary for the
  industrial process
• Exemption from land tax on the industry's
  premises after becoming taxable for a period of
  11 years at the most
• Exemption from occupancy tax on the use of the
  industry's land for a period of 11 years at the
  most
• Exemption from personal income tax on income
  earned from dividends and other distribution of
  profits.

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Land development

• To qualify a limited liability company should
  invest USD 1,100,000
• in development
• Corporate tax -including surcharges- of at least
  2 on the profit obtained by the sale of
  developed land for a period of 15 years at the
  most
• Exemption from import duties on materials and
  goods intended for the laying-out of roads, on
  construction of real estate and on the laying-out
  or construction of locations for amusement
  purposes
• Exemption from land tax
• Exemption from occupancy tax
• Exemption from personal income tax on income
  earned from dividends and other distribution of
  profits.

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Economic zone

• 2001 Exempt zone Economic zone
• Carrying out of maintenance and repair work in
  the economic zone to the goods of businesses that
  operate outside the Netherlands Antilles
• Internet related activities
• 100 services abroad (75 with a license)
• Booming internet trading companies, gaming
  industry (sports betting, casinos)

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E-zone (includes e-commerce)

• To qualify a legal entity with share capital must
  first be admitted to
• the economic zone area
• A 2 tax -including surcharges- on the profit
  induced by exports up to and including December
  2025
• Exemption from turnover tax ("OB"), excises,
  import duties (including economic levies) in the
  case of import, transshipment or export
• Employees who lived outside the Netherlands
  Antilles for more than 5 years can qualify for an
  expatriate status. In addition, certain tax-free
  benefits may be granted to the employee by the
  e-zone company
• Upon request the Central Bank grants exemption
  from the payment of foreign exchange license fee
  charges for merchandise transactions

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Other business

• Qualified limited liability company should invest
  USD 137,500
• 2 corporate tax (incl. surcharges) for a period
  of 11 years at the most
• Exemption from import duties (including levies)
  on materials and on goods required for
  construction and initial capital equipment
  (includes expansions) plus exemption from import
  duties for a period of 10 years at the most on
  raw materials and semi-manufactured articles
  which are processed by the company
• Exemption for a period of 10 years from land tax,
  after becoming taxable
• Exemption from occupancy tax on the use of the
  business' land for a period of 10 years starting
  after the year of the start-up of the business
• Exemption from personal income tax on income
  earned from dividends and other distribution of
  profits.

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Private Foundation

• Special form of the entity foundation and
  therefore an alternative to the Anglo-Saxon trust
  (a trust which qualifies as a legal entity)
• Flexible entity (board, binding instructions with
  respect to distributions)
• Exemption from Netherlands Antilles gift tax
• Exemption from Netherlands Antilles profit tax ?
  condition no enterprise
• Tax treatment in country of the donor /
  beneficiary is crucial

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Private Foundation Cont.

• Estate planning
• Alternative to the trust
• Investment in new activities
• Holding company
• Investment (group) company
• Asset protection

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Whos already there (except you heres a
shortlist)

• First Caribbean International Bank
• RBTT
• Guardian
• Sagicor
• Canada Post
• Mirant

• Total Bank
• Marriott, Hilton, Renaissance, Hyatt, Wyndham,
  Best Western, Superclubs Breezes
• Ansari Corporation
• Productive Business Solutions
• Digicel

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Masha Danki!