Netherlands Antilles Legal System and Tax Incentive

Since 2000, the Netherlands Antilles (NA) have closely worked with the OECD in order to maintain high international standards and affirm their position as a responsible, international financial centre. Especially in view of the constitutional changes to come, the Netherlands Antilles are eager to keep and improve their international acceptance in the area of offshore services. The Netherlands Antilles are an associate member of the European Union. Though they are not submitted to European legislation, their status of associates of the EU and autonomy of the Kingdom of the Netherlands is in itself a guarantee for good governance and respect for the law. This close association with the European Union largely contributes to the economic development and prosperity of the islands. Visitors usually notice this special “European flair” in every aspect of daily life. From the use of the euro to European food: In spite of being in the Caribbean, you will easily get that “home away from home” feeling. This is especially true for St. Maarten, which neighbour with the French overseas territory of St.Martin. Having  European territory at their doorstep, without borders, St. Maarten’s lifestyle and economy hardly differs from the one of their French neighbour. Furthermore, authorities on both sides of the island constantly increase cooperation in matters of security, environment, economy and tourism. Their aim is to harmonise certain aspects of legislation in order to attract even more business investors and tourists.

The Netherlands Antilles are a parliamentarian democracy with parliamentarian representation within the Kingdom of the Netherlands. The laws and regulations of the Netherlands Antilles are based on the Dutch Civil Code. The Netherlands Antilles (NA) have a Court of First Instance as well as a Court of Appeal, based in Curacao. The Supreme Court is the Dutch Supreme Court in The Hague. In view of constitutional changes at the end of 2008, Curacao and St. Maarten may be interested in having their own Courts of First Instance and Courts of Appeal. The NA government has, among other fields, jurisdiction over communications, economy, the creation of companies, banking and money. Curacao and St. Maarten will have the same competencies after they become autonomous countries of the Kingdom of the Netherlands. The Dutch government  intends to strictly supervise the budgetary policy of the NA after the planned constitutional changes.

In order to safeguard their international reputation of integrity, the NA have approved of several legal ordinances aimed at the prevention of money laundering. of criminal origin - money laundering in itself is criminal. They have adopted the Statement of Principles of the Basel Committee on Banking Regulations and Supervisory Practices. The NA have further adopted:

The Netherlands Antilles have a very advanced banking system. Most of the banks have international connections and many of them are branches of well-known European or North-American banks. Because of their adherence to international rules, the Netherlands Antilles are in the position to provide absolutely legal financial services. In no way do they offer a tax haven for tax evasion.

In order to promote foreign investment, the Netherlands Antilles offer substantial tax incentives. Such tax incentives apply to several legal entities described in the Civil Code. When it comes to protect and increase your assets, the most interesting legal entity in the Netherlands Antilles is without doubts the Private Foundation.