If I have learned one thing about tax implications for those of us relocating to Curaçao, it’s that every situation is completely unique. There is no one-size-fits-all answer.

I have been researching more fully recently and spoken with a specialist in Curaçao and another here in Canada. My situation is actually quite simple in comparison to many people as we are moving fully to Curaçao, will not be working there, and will have no properties or incomes (other than pension) from home, and it is still very complex.

Here is what I have learned so far:

1. Everyone’s tax situations are different and can be very diverse even with only a few variations in incomes, etc.
2. CRA will look for Primary and Secondary ties to Canada to determine how “connected” you are. Primary ties include spouse, personal home, location of dependant children, etc. If you have many primary ties, this will effect how you are taxed. If you come back to Canada and use your Canadian Health card, or renew your driver’s license, these could be considered “ties” and change your tax situation. Secondary ties are things like bank accounts (1 or 2 is fine), LIRA, RRSP, personal effects, club memberships, etc. These should have no effect.
3. Every country’s tax treaty (If one exists for Curaçao and that country) is completely different and some have little if any helpful info. One thing the Treaty does is set the withholding tax in Canada to 15%. This is a tax Canada withholds at the source from things like government pensions, CPP, OAS, etc.

Tax Treaty Link…don’t get excited…it’s not helpful.

• Each year, your bank will create a NR4 form (Statements of Amounts Paid or Credited to Non-Residents of Canada) for you. This will show any monies withheld at the source (like the 15% in point #3) and should offset taxes owed in Curaçao. This is what I call a “good form.”
• There is another form called the NR73 Determination of Residency form. DO NOT FILE THIS UNLESS CRA SPECIFICALLY ASKS FOR IT. It’s a super tricky form and if you screw it up, it can take YEARS to rectify. If CRA does ask for it, definitely get a tax specialist to help.
• Find a specialist from each country (from the same company, if possible). I was lucky enough to find this for myself. They have offices in Curaçao, Canada, Netherlands, and the US. I can provide you with their contact info upon request; just use the Contact form. I highly recommend you pay the fee to get the high-level advice. It will help eliminate, or at least lessen, the unknowns.
• Ask a ton of questions and provide detailed info to them. The more you share and learn, the better.

Ultimately, this is taxes, so it’s gonna be painful. But knowledge is power, so make sure you fully investigate YOUR OWN specific situation. Pay the money for the high-level advice; it’s worth it.

As noted, my situation is quite straight forward, so I won’t be “double taxed”, etc. That said, it’s still confusing as heck.

 For others that may be:

• Continuing to work for a foreign source company
• Earning cash from multiple sources in multiple countries
• Owning properties in multiple countries
• Leading double lives
• Etc

Knowing the details ahead of time can only be helpful.

NOTE: When departing Canada to move permanently, you will have to pay a “departure tax” on some things. RRSP, RESP, LIRA, TFSA and personal properties should be exempt, but again, every situation is different, so make sure you investigate with a professional.

Taxation in Curaçao:

Note: Again, this will vary for each person depending on their own specific circumstances, so consult a professional

• You can claim a tax credit from your home country on income tax paid there and that should offset your Curaçao tax
• Tax rate will vary depending on your situation and which residency permit you have (example: pensioners permit puts you in a flat rate of 15%)
• If you are over 50 you can apply for a 10% reduction in rate
• There is the equivalent of CPP/ social security which is 16% of your income paid until you are 65, the 16% is applied until you pay 50K Naf and then it is 1% of income post that rate
• AFB which is a social safety net tax is 2% of your income, up to 35KNaf
• Taxable income includes: earned income from a salary, dividend income, interest income, income from CPP/ Social security
• Capital gains are not taxable

UGH!! I hate taxes!!