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There is more to finding a business location than economic incentives, but they do make a big difference.

Are incentives all that matter when choosing a Free Economic Zone to establish your new business?

Are incentives all that matter when choosing a Free Economic Zone to establish your new business?

No, but they are definitely at the top of the list of things you should consider.  Many Free Trade Zones offer a combination of factors that make it attractive to establish a business there.  In addition to the structural dynamics that create a favorable environment to operate and flourish in, there are also the economic incentives offered.  You may not realize this, but at the bottom line these could add up to make the determining difference in where to establish your new business.

Your Basic Tax Incentives

First of all, there is the aspect of taxes.  We’ve all been in business long enough to know that the amount of taxes we need to hand over to the government, at the end of the day can make or break our success.  Many Free Economic Zones offer tax benefits with some rates as low as 0%.  The Curaçao Free Economic Zones, for instance, offer these basic tax incentives:

  • 0% Import duties
  • 0% Turnover tax
  • 2% Profit tax on export profits
  • 0% Land/property tax

Attractive ‘add-ons’ to consider

But tax incentives nowadays are basically a given for a Free Economic Zone to even be considered an attractive alternative to regular establishment in a jurisdiction.  What’s the use of a Free Economic Zone without them, right?  That’s why many zones also add other non-tax related incentives to differentiate their offering.  As an investor in Curaçao, next to the basic tax incentives, you also benefit from:

  • Preferential financing through a development bank in Curaçao at a competitive rate
  • 100% ownership of the business as a foreign investor

The first is an obvious benefit that needs no explanation.  The second may not seem that significant, but it really is a big advantage that you will not find everywhere.  Many jurisdictions require local ownership to establish a company, often with a share of 50% or more.  At the Free Economic Zones of Curaçao you can be full owner of your business, keeping 100% of your profits after tax.

And Curaçao’s offering is unique in another way.  A recent survey among business owners in Free Economic Zones in the region shows that the presence of Banking and Customs services on location greatly improves the efficiency of your operations, and Curaçao provides that.

Free Economic Zones that offer you all the aforementioned benefits, as well as great amenities such as: turnkey facilities and infrastructure, security that meets international standards, Customs at the zone, an internationally renowned banking system, and a sophisticated cosmopolitan Caribbean lifestyle, make Curaçao the ideal destination to branch out your business.

And finally, an interesting note for those trading in high value goods

One of the zones in Curaçao is located adjacent to the seaport of Curaçao, while the other is right next to the airport, which minimizes the cost and risks of overland transport considerably.  In this context it is also worth mentioning that Curinde, manager and operator of these Free Economic Zones, is currently working on obtaining a security clearance level that will give the zone by the airport direct access to the airport tarmac.  This means that goods would no longer have to leave the airport grounds, making this zone especially interesting for the trade in high-value goods such as gemstones and precious metals.