Curacao Private Foundation Case Study 3: Copyrights & Royalties

When a Private Foundation acts as the owner of your copyrights (or patent rights), the income generated can be exempt of taxes.

If you own copyrights in private or in the name of a legal entity, the profit will be subject to income tax,  profit tax or even both.

If a Private Foundation acts as the owner of the copyrights, it can transfer its rights to third parties and charge royalties for that service. Under Netherlands Antilles law, this kind of activity of a Private Foundation is not considered to be a business activity. The Private Foundation is allowed, however, to be used for this purpose. The generated royalties are 100% tax free under Curaçao legislation.