If you’re an entrepreneur or digital nomad frustrated by complex tax regimes and searching for a straightforward, low-barrier way to do business, Curaçao’s approach to sole proprietorships in 2025 may offer the clarity and flexibility you crave. Let’s break down exactly how the eenmanszaak (sole proprietorship) works, what you can expect in terms of tax obligations, and how to optimize your setup for maximum autonomy and efficiency.
Understanding the Sole Proprietorship (Eenmanszaak) in Curaçao
Curaçao recognizes the eenmanszaak as a legitimate and accessible business structure for individuals. This status allows a single person to own and operate a business without the need to establish a separate legal entity. The process is designed to be straightforward, but it’s important to understand the implications—especially regarding liability and taxation.
Key Features at a Glance
| Aspect | Details |
|---|---|
| Status Name | Eenmanszaak (Sole Proprietorship) |
| Legal Entity | No separate legal entity; owner is personally liable |
| Registration | Required at Curaçao Chamber of Commerce |
| Taxation | Profits taxed as personal income (progressive rates) |
| Special Regimes | No micro-entrepreneur regime; standard rates apply |
| Accessibility | Widely used and accessible to regular citizens |
Taxation of Sole Proprietorships in Curaçao (2025)
All profits from an eenmanszaak are taxed under the individual income tax regime. As of 2025, Curaçao applies progressive income tax rates ranging from 9.75% to 46.5%. There is no simplified or micro-entrepreneur tax regime, so all sole proprietors are subject to these standard rates.
- Lower threshold: 9.75% (for lower income brackets)
- Upper threshold: 46.5% (for higher income brackets)
Example: If you earn ANG 50,000 (approx. $27,800) in profit, your tax rate will fall within the progressive brackets, with the effective rate depending on your total taxable income. This structure rewards careful planning and expense management.
Pro Tip: Optimize Your Tax Burden in 3 Steps
- Register Early: Complete your registration at the Curaçao Chamber of Commerce to ensure compliance and access to local business resources.
- Track Expenses: Keep meticulous records of all business-related expenses. Every legitimate deduction reduces your taxable profit and, by extension, your tax liability.
- Plan Withdrawals: Since profits are taxed as personal income, consider timing and structuring withdrawals to avoid jumping into higher tax brackets within a single year.
Liability and Legal Considerations
Unlike some jurisdictions that offer limited liability for sole proprietors, Curaçao’s eenmanszaak does not create a separate legal entity. This means you, as the owner, are personally responsible for all business debts and obligations. While this increases risk, it also keeps the structure simple and free from excessive regulatory overhead.
Pro Tip: Safeguard Your Assets
- Consider separating personal and business finances to maintain clarity and reduce audit risk.
- Evaluate insurance options to protect against unforeseen liabilities.
Who Should Consider an Eenmanszaak?
The eenmanszaak is ideal for freelancers, consultants, and small business owners who value simplicity and direct control. It’s especially attractive for those seeking to minimize bureaucratic friction and maintain autonomy over their business affairs.
Summary: Key Takeaways for 2025
- Curaçao offers a straightforward sole proprietorship status (eenmanszaak), widely used and accessible to individuals.
- Profits are taxed as personal income at progressive rates (9.75%–46.5% in 2025).
- No special micro-entrepreneur regime exists, so standard tax rules apply.
- Personal liability is total—plan accordingly to protect your assets.
For more details on registration and tax obligations, consult these official resources: