When it comes to banking in the Caribbean, most people skip Curacao's offshore banking options in favor of the Bahamas, the Cayman Islands, Bermuda, or other island nations. But with Caribbean banks losing critical correspondent relationships and being blacklisted left and right, finding viable offshore banking options is becoming a challenge.

Fortunately, there are many options available and although several Caribbean nations are no longer safe jurisdictions for their deposits, several offshore banking jurisdictions are starting to return to the forefront and Curacao could be the country you were waiting for.

Before we delve into how to open an account in Curacao, let's get to know a little about this jurisdiction. Curacao is a small island in the Caribbean, 40 miles from Venezuela and a 3-hour flight from Miami. 

Previously it was a tax haven, but no longer, not even a financial powerhouse. What makes Curacao an interesting place is that it is Dutch.

More specifically, it is part of the Kingdom of the Netherlands, built on Dutch laws and European sensibility. The Netherlands is responsible for foreign policy, defense and the conclusion of international agreements.

The agreement recalls the UK's relationship with the Isle of Man, Gibraltar or Jersey. Citizens of Curacao are Dutch and have Dutch passports. Curacao's offshore banking sector is under the radar. In fact, it's almost never talked about.

In the 1950s, Dutch elites carefully molded Curacao into the ideal offshore hub. They shaped laws, tax incentives and secured high-profile tax treaties that were out of reach for most island nations.

In the 1970s, Dutch ingenuity paid off and Curacao was a booming offshore financial center. U.S. companies could use the U.S.-West Indies tax treaty, set up companies in Curacao, get a 0% tax rate on Dividends from the Netherlands, and avoid withholding U.S. taxes altogether. It was seen as a dividend route at its finest. 

Dutch companies could do all sorts of magic tricks to minimize taxes with Curacao. After all, Curacao was a tax haven built for and by Holland.

What continues to make Curacao an ideal place for offshore banking?

We have already mentioned some of the reasons that make Curacao interesting. For example, which is governed by Dutch law, is a friend of the US, is on the OECD whitelist and has a relatively clean image.

This jurisdiction has a level of acceptance of high-risk industries, Curacao has an online gambling and gambling industry. So, online gambling and casinos, licensed gaming companies and gambling affiliates, are all here.

This means that selected banks in Curacao understand high-risk industries better than other jurisdictions. Sure, you still have to go through standard compliance procedures and are likely to be subject to the highest account opening fees. 

The acceptance of foreign and offshore companies is an important benefit in this jurisdiction. Finding a bank that is willing to open a bank account for an offshore company or a foreign company without local economic substance is increasingly difficult, even in the Caribbean.

In Curacao remote opening is still possible, although the number of banks willing to open accounts remotely for foreign companies is decreasing there are still many that provide this service. Therefore, those who are desperate for remote opening, but are less concerned about high opening fees. 

This beautiful island has one of the lowest tax regimes in the Caribbean, but it is not a tax haven. Personal income taxes can reach up to 45% for some, and apply to worldwide income. As for corporate tax, it can range from tax-free to 2% and can go up to more than 30%, depending on your business and what you qualify for.

If you want to open an offshore bank account in Curacao, Foster Swiss can advise you. We help you in practically everything, we provide personalized advice from the moment of choosing the bank that best benefits you, until the opening of your offshore account.

For more information on this topic or any requirement related to our services, you can contact us directly through info@fosterswiss.com