SPF in Curaçao: What You Need to Know
An SPF (Stichting Particulier Fonds) is a commonly used structure for owning property in Curaçao, particularly for owners who want to protect their assets and plan ahead for inheritance. This article explains what an SPF is, why owners choose one, and what to consider.
What is an SPF?
An SPF is a legal entity with no shareholders, managed by a board, specifically intended for managing and ring-fencing private wealth — including property. An SPF is not a standard business and is generally not intended for active commercial operation.
Why owners choose an SPF
Commonly cited reasons for structuring property through an SPF include:
- shielding ownership from personal liability;
- wealth and succession planning, for example structuring the transfer of a property to heirs;
- a clear separation between personal assets and the property itself.
Costs and ongoing obligations
Setting up an SPF involves formation costs, and maintaining one involves annual administration and compliance costs. The exact costs vary by notary, trust office or administration office and by the complexity of the structure, and can change over time. It is therefore worth requesting a current, tailored quote from a local notary or trust office before setting up an SPF, rather than relying on general indicative figures.
When an SPF is not necessary
An SPF is not the right choice for everyone. For owners with a single property for private use, with no specific need for asset protection or succession planning, the setup and maintenance costs of an SPF may not outweigh the benefit. In that case, private ownership can be a simpler and more cost-effective choice.
How rental works through an SPF
When a property held in an SPF is also (partly) rented out, the usual tax obligations still apply, such as any turnover tax on short-term rental and annual OZB. An SPF is generally better suited to passive wealth management than to large-scale, active commercial rental operations — for the latter, a BV is often a better-suited structure.
Unsure whether an SPF, private ownership or a BV is right for you? Read our comparison in SPF versus private ownership versus a company.
In conclusion
An SPF can be a valuable structure for asset protection and succession planning, but it is not a universal solution. Discuss your specific situation with a local notary or tax advisor to determine whether an SPF, private ownership or a BV best fits your plans.