Curaçao tax benefits
Tax advantage annuity insurance Curacao
On January 1, 2017, the Curacao tax authorities further expanded the deduction for premiums for your annuity insurance. As a result, the Curacao tax authorities contribute even more to the build-up of your pension on Curacao than before.
Under this new scheme, you may deduct a maximum of 10% of your salary in annuity insurance premiums from your taxable income. The absolute maximum here is NAf. 3,000 per person.
The intention is that this scheme will be further expanded in 2019 so that the absolute maximum is NAf. 5,000 per person. This also concerns 10% of your salary, but the absolute maximum per person is therefore higher.
Are you married? Then you and your spouse may deduct the double amount from your taxable income. The amount for a married couple together is now NAf. 6,000 and after 2019 you are allowed NAf. Deduct 10,000 from your taxable income.
Furthermore, it was previously not possible to use premiums for your annuity insurance on Curacao as a deductible item if pension premium was also deducted from your salary, but this limitation has now expired.
New annuity insurance rules
However, there are only new rules for deducting premiums for your annuity insurance on Curacao. The most important rule is that the annuity policy must be taken out with a life insurance company established in Curaçao. Only one exception is possible: if the annuity insurance/pension scheme has already been taken out at least three years before you were registered as a resident of Curaçao.
Furthermore, the requirements for deduction differ depending on the way in which the annuity will be paid out.
Possible annuity insurance benefits:
- income for yourself for later
- income for your child(ren)
- income in case of illness, accident or disability of yourself
- income for your partner if you die
In short: do you have the option to set aside some money every month to save for a pension plan? Then it is a good idea to dive into this matter. Perhaps you will then start building up a supplementary retirement pension on Curacao.
