A Curaçao trust can be an excellent vehicle for Dutch real-estate holdings. Not only does it offer several tax and asset-protection benefits, transferring real estate into a Curaçao trust can also be a favorable option for estate planning.
Separation of assets: real estate is no longer part of the settlor’s assets (nor does it become part of trustee assets). Should the settlor declare bankruptcy, the real estate cannot be seized by creditors because it has been removed from his or her own assets.
Deferred income taxes: if the real estate generates rental income, this will not be taxed in Box III under Dutch income tax. Important to note: rental income from real estate should not be classified as operating a business.
Transferred legal ownership: as the settlor and/or beneficiaries retain economic ownership only, Dutch transfer tax should not apply..
Estate planning: the settlor can freely decide and detail how and when he or she wants ownership, usage and potential benefits from the real estate to be divided. The settlor can fully decide what will happen to the asset, and the trustee is obligated to follow what was agreed in the trust deed.
Establishing and maintaining a Curaçao trust, in good standing and in compliance with the laws of Curaçao, requires an expert approach to preparing the trust deed, registration, management, and corporate secretarial and financial tasks, but above all, it demands a keen eye for service and client needs. With extensive experience, Trustmoore offers the ideal approach for the complete care of client business interests as a reliable member of the client team. Trustmoore is a highly effective, innovative and client-driven corporate-services provider with a proven track record of excellence. In addition to Curaçao, Trustmoore has offices around the world.
For more information, please contact us.