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Since 1987 (with amendments in 1997) the Netherlands
Antilles offers a favorable personal tax regime for retired people.
The regime is available on the following conditions:
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The "penshonado" should be at
least 50 years old on the date that he registers himself as
a resident; |
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The pensioner should not have lived in the
Netherlands Antilles in the five years before making the application
for'penshanado' status; |
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The pensioner must own a house in the Netherlands
Antilles with a value of at least NFl 450.000 (US$253.000) for
his personal use and available to him within 18 months after
his registration as a resident; |
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The application for favorable tax treatment
must be filed within two months after registration as a resident;
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The "penshonado" has to provide
employment to at least one employee for not less than 30 hours
per week. |
A "penshonado" may choose between two tax regimes:
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Worldwide income, not derived from business
or employment within the Netherlands Antilles, including pension-rights
of which at least 70% are externally funded, can be taxed at
a flat 10% rate; or |
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All foreign income will be fixed at NFl
500.000 (US$281.000) and taxed at the normal progressive rates,
which amounts to an effective tax of NFl 271.000 (US$152.000).
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 Foreign
income is considered to be all income from a foreign source, including
non-resident (so called "offshore") companies established
in the Netherlands Antilles, all income from savings at local banks;
and the rental-value of the house owned by the penshonado.
"Local" income is all income that the penshonado receives
from employment in a company established in the Netherlands Antilles
in which he owns 40% or more of the capital stock and/or income obtained
as a director or officer of a company and/or income received from
bonds issued by a local company. Local income is taxed at the normal
tax-rate for local citizens. The penshonado may not enter into employment
with a company in which he does not own at least 40% of the capital-stock. |
