Retirement in Curaçao: everything you need to know

Are you retiring and would you like to emigrate to Curaçao as a pensioner? Or would you prefer to stay for a few months a year, but still have your own home on the island? Are you eligible for the pensioner scheme? Is it time to enjoy your free time in a tropical location where the average temperature is around 31 degrees?

We can tell you everything you need to know about the pensioner scheme, healthcare on the island, and ideal living conditions. When are you eligible for the pensioner scheme? We are happy to explain the conditions, benefits, and details. That way, you can enjoy your retirement on this beautiful Caribbean island with peace of mind. If you also want to enjoy the warm climate and benefits, be sure to read on!

This scheme is intended for foreigners (aged 50+) who emigrate to Curaçao. This scheme can provide you with tax benefits in the case of foreign income. There are two forms of this scheme. For both schemes, income from abroad is taxed at a rate of 5% (old scheme) or 10%.

You can also choose to tax a lump sum foreign income of XCG 150,000 (old scheme) or XCG 500,000 at the normal rate, regardless of what the actual foreign income was.

To be eligible for the penshonado scheme, you must meet the following five simple conditions:

• You are 50 years of age or older.
• You have lived outside Curaçao for at least five years (60 months) without interruption.
• You apply for the scheme with the Tax Inspector within two months of registering on Curaçao.
• Within 1.5 years (18 months) of registration, you must own a house on Curaçao worth at least XCG 450,000. You may not rent out this house (it must be for your own use). Alternatively, you may own a protected monument (also worth at least XCG 450,000). You may rent out this monument for a maximum of 4 months per year.
• You may not perform any type of work (permanent, self-employed, or otherwise) on Curaçao. This also applies to your partner if you are married, unless there are exceptions.

The old regulations only apply to people who settled before January 1, 1998, and submitted their application at that time.

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Income from abroad, outside the borders of Curaçao, falls under the pensionado scheme. This concerns the following income, which is classified as income from abroad:

• Income from a job or work that you have done (or are still doing) outside Curaçao.
• Profits from a business that you do not operate in Curaçao (for example, through an office abroad).
• Rental income from houses or buildings located outside Curaçao (this does not apply to mortgages on houses in Curaçao).
• Interest on savings and receivables from abroad (this does not apply to loans to people or organizations in Curaçao).
• Profits from shares, profit certificates, or the sale thereof from a foreign company (such as a foreign NV or BV).
• Benefits you receive from a foreign party.
• The interest portion of a life insurance benefit from a foreign insurer.

All other income that does not fall under the pensionado rate will be taxed at the normal rate.

Yes, there are certainly exceptions. You (and your partner, if you are married) are not allowed to work in Curaçao. This applies to salaried employment, self-employment, or other assignments. So that is not allowed, but there are also a number of things that are allowed:

You can still become a pensioner if your income from work in Curaçao falls under one of these two specific exceptions:

You have a job with a Curaçao company in which you yourself are at least a 40% (direct or indirect) shareholder.
You receive income as a supervisory director (commissaris) of a company.

Important: income from these two exceptions is not subject to the 10% rate of the Penshonado scheme. It is taxed at the normal rate.

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Our real estate agent will take the time to answer all your questions about the area and the region. This is how we make real estate a truly personal experience.

If you meet the requirements for the Penshionado scheme, you can choose between two ways of paying tax on your foreign income. The first option is to declare your actual foreign income, which will then be taxed at a fixed rate of ten percent. If you choose this option, you must wait at least three years before you can change your mind.

The second option is to work with a notional income, also known as a lump-sum income. You then declare a fixed amount of five hundred thousand Antillean guilders (ANG 500,000) as foreign income, regardless of what you actually earned.

This fixed amount is then taxed at the normal (regular) rate.

The disadvantage of this choice is that you can no longer make use of the agreements to prevent double taxation. You must choose between these two options when you submit your application to the tax authorities.

The pensionado scheme expires at a few important moments. The most important thing to note is that if you or your partner have received income from work in Curaçao in two consecutive years, you will lose your entitlement to the scheme entirely and all your income (including income from abroad) will be taxed as normal.

The same applies if you submit your tax return late or incomplete for two consecutive years. Finally, you will lose the scheme if you no longer own a home on Curaçao worth at least XCG 450,000 for more than six months. This is also an important requirement.

The old Penshonado scheme only applies to people who settled before January 1, 1998, and who had already submitted an application at that time, provided that they have not worked on Curaçao since then.

Even if you are covered by the Penshonado scheme, you still have to pay contributions for social insurance, such as Basic Health Insurance (BVZ), General Insurance for Special Medical Expenses (AVBZ), General Old Age Insurance (AOC), and General Widows and Orphans Insurance (AWW). Whether you have to pay all premiums depends on your age.

Now that we are discussing healthcare premiums, it is of course also important to know how healthcare is organized on Curaçao. How is nursing care organized and what are the options in terms of elderly care?

Of course, you want to enjoy your retirement on the island for as long as possible, but there will come a day when you need care as you get older. What will happen if you can no longer live independently and need help with daily care? And what if you prefer to be cared for in a safe, familiar environment?

On Curaçao, too, older people prefer to live independently in their own house or apartment for as long as possible. If you are energetic, fit, and young, this is often possible for a very long time. Especially if you have a support network, such as friendly neighbors, family, or other acquaintances, you can live independently for a long time.

There are also other options on the island:

• Help with housework (through subsidies or privately)
• Home care (e.g., personal care, nursing, help with administering medication)
• Meal service (for a fee)
• Transportation to the doctor or hospital

It is important to note that there is often a waiting list for home care organizations. It is therefore best to arrange this well in advance.

Did you know that there are also private providers of nursing and care? These are nurses or caregivers who offer assistance at home, such as wound care, administering injections, medication monitoring, incontinence care, and daily ADL support (activities of daily living).

If you want this type of care, you will usually have to pay for it yourself. Some elderly people prefer to hire a permanent caregiver. The average cost of private home care is between €20 and €50 per hour.

Is it no longer possible for you to live independently, or do you need intensive care? There are several care centers and nursing homes on Curaçao. How care is organized here depends on price, quality, and accessibility. In general, the quality of care in nursing homes and care institutions on the island is well organized. Some nursing homes are known for their small-scale care, such as Huize Patrick.

These care centers offer intensive care, such as 24-hour nursing care, dementia support, and medical supervision. They also offer daytime activities, meals, and pastoral care (spiritual guidance).

Here too, there are often waiting times, just like in the Netherlands. Some institutions have admission criteria. Therefore, make sure you are well informed in good time.

Elderly care is partially subsidized by the government through the Social Insurance Bank (SVB), but this mainly applies to residents receiving an AOV benefit (local variant of the AOW). If you are a Dutch citizen living on the island and receive a pension from the Netherlands, you will often have to contribute to the costs of elderly care yourself. What can you expect in terms of costs?

• At private care institutions, you pay an average of around XCG 3,000 to XCG 6,000 per month.
• At semi-public institutions with subsidies, you pay around XCG 1,200 per month.
• For home care services, you pay between XCG 20 and XCG 50 per hour, but this also depends on the frequency and intensity of the care.

Make sure you have good, comprehensive health insurance and find out in advance exactly what is covered.

Just like in the Netherlands, we are seeing more small, private initiatives emerging in Curaçao. These include small residential groups for the elderly or shared villas with live-in help. Informal care initiatives are also emerging within families or their circle of friends to share the intensive care.

Shared living is attractive because you share the costs of care and still live in a pleasant, beautiful environment (which you decorate yourself).

Retiring and growing older is truly wonderful on Curaçao. Just make sure you take care of some important matters in good time. Once you have everything in order, you can truly enjoy your free time on this Caribbean island without a care in the world. Enjoying your retirement on Curaçao is a dream come true, isn’t it? Could you use our expertise in your adventure, such as when purchasing a home? Then take a look at our exclusive selection of luxury homes on the island.

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