Why an SPF in Curaçao is Ideal for Vacation Properties
Discover why a Private Foundation (SPF) is the perfect legal structure for owning vacation properties in Curaçao, including tax benefits and flexibility.
Why an SPF in Curaçao is Ideal for Vacation Properties
Curaçao, a beautiful Caribbean island known for its crystal-clear waters and expansive white beaches, offers investors a unique structure, the Private Foundation (SPF), which is specifically designed for managing assets such as vacation properties. Below, we explore the key benefits of using an SPF for purchasing and managing vacation homes on this sunny island.
Legal Structure
An SPF is a legal entity established by a notarial deed and operates without shareholders, making it an ideal option for discreetly owning real estate. This structure ensures privacy and minimizes the bureaucratic burdens typically associated with traditional company forms.
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Passive Investments
Designed specifically for passive investments, the SPF makes managing vacation properties simpler and more efficient. Investors can focus on generating income from their properties without worrying about the complexities of active management.
Tax Benefits
One of the most attractive aspects of setting up an SPF in Curaçao is the exemption from profit tax. Rental income generated from vacation properties through an SPF is exempt from local profit taxes, representing a significant financial saving.
Flexibility and Discretion
The founder of an SPF can organize the foundation as they see fit. This includes setting specific conditions in a confidential wish letter that the SPF's administrators can follow, which benefits the owner's flexibility and discretion.
Asset Protection
SPFs offer excellent opportunities for asset protection and estate planning. It allows founders to smoothly transfer their assets to future generations, in accordance with their specific wishes and without the need for complex legal procedures.
Oversight and Control
An SPF can also provide for the appointment of a supervisory committee, allowing for additional control and oversight over the SPF's activities and finances, ensuring to the founder that the foundation is managed according to their wishes.
Legal System
The legal system in Curaçao offers stability and certainty for foreign investors, with legal procedures firmly rooted in the Dutch legal system and the possibility of appeal to the Supreme Court in The Hague.
Conclusion
An SPF in Curaçao represents a strategic and advantageous choice for investors looking to capitalize on the booming market for vacation properties on the island. With substantial tax benefits, operational flexibility, and robust legal protection, an SPF offers a superior option for those seeking a cost-effective and efficient way to invest in real estate.
Contact Us!
Are you interested or do you have questions about how an SPF can work for your real estate ambitions in Curaçao? Contact Jan Jaap Geusebroek, our specialist in legal structures, at Amsterdam Lawyers today. Call, send a WhatsApp message, or click here to send us an email.
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