BEING AN EXPATRIATE IN THE NETHERLANDS ANTILLES
An expatriate enjoys certain tax advantages
The Expatriates rules are defined in the Expatriates Decree 1998. An Expatriate is an employee in an employer – employment relationship that immediately and prior to his employment in the Netherlands Antilles, has lived abroad during a continuous period of at least five years.
If all conditions for the Expatriate-status are met there are some wage components that will not be taxed with the progressive wage tax rate of up to 49.4% (in 2006 surcharges included) in the Netherlands Antilles.
The Expatriate has to meet the following conditions:
– the Expatriate has specific expertise on graduate or university graduate level and has three years relevant work experience or
– the Expatriate has no university education as mentioned above but has five years work experience on the abovementioned education level and obtains a payment of at least ANG 100,000 per year;
– this specific expertise is not or in a limited way available on the local labor market and
– the Expatriate works at a company that is counted to belong to a foreign currency generating sector.
The following industries are mentioned as foreign currency generating sectors:
– the international financial service industry;
– the petroleum/ mineral oil industry;
– the aviation industry;
– the tourism industry;
– the telecommunication industry; and
– the educational institutions situated in the Netherlands Antilles that virtually provide university education to foreign students.
The Expatriate status is in general valid for five years, this period can be extended with five years.
Karel Frielink
Attorney (Lawyer) / Partner
