Economic upheaval across Latin America is drawing investors to the island’s stable and well-regulated financial sector, says Francisco Tortolero Lucena, relationship manager, and Anthony Rozendal, senior account manager legal, Intertrust Curaçao
Curaçao is re-emerging as a preferred jurisdiction for investors, family offices and high-net-worth individuals (HNWIs) from the LATAM region looking to protect their assets.
Economic and political trends in the LATAM region are working in favour of the island. Investors in Latin America and further afield want a safe haven from the current financial storm and economic uncertainties in the region. Curaçao has positioned itself to meet their needs.
Across Latin America, nations are struggling with the economic consequences of the Covid-19 pandemic and the war in Ukraine.
In some cases that’s leading to income tax rises at the top end and the introduction of heavy wealth taxes.
Upheaval always leads to a search for security and stability. Many of the region’s family offices and HNWIs are looking for safe jurisdictions for at least some of their assets.
Curaçao is well placed to take advantage of this trend, thanks to its geographical proximity to many of the countries in question, its excellent connectivity and the solidity of its economic and legal systems.
Curaçao is a highly connected island, with regular flights to major US, European and South American cities.
That’s important for Latin American clients, who like to do business face to face. They want to know the person who is handling their assets and to be able to shake hands on a deal.
Curaçao’s geography and transport links make that possible, both for Latin Americans living in their home countries and those residing in the US and Europe.
It’s often said that clients in neighbouring countries such as Venezuela and Columbia can arrive in Curaçao in the morning, take care of their affairs and be home in time for dinner.
For those from further afield, the island’s pristine beaches help to make even the most routine business trips a pleasure.
Curaçao also offers peace of mind to Latin American investors in the form of stable government and strict adherence to the rule of law.
The island is part of the Kingdom of the Netherlands. It has a well-regarded legal system that includes the right to appeal to the Supreme Court in the Hague.
Curaçao is a high-income economy with a stable local currency and a long-established financial services sector. The Curaçao Central Bank dates back to the early 19th century.
Regulation around the financial services sector is designed to attract clients looking for security and privacy alongside global compliance.
The sector adheres to advice from international bodies including the Financial Action Task Force (FATF) and follows the EU Code of Conduct against harmful tax practices. It enforces comprehensive policies against money laundering and the financing of terrorism.
At the same time, when clients register a corporate entity, their names do not have to appear on any publicly available documentation.
Clients often cite this combination of compliance, stability and privacy as their reason for choosing Curaçao for asset protection and wealth management.
Curaçao has long had a reputation for offering safety in a storm. Indeed, the island is outside the Caribbean hurricane zone, so it offers security against meteorological as well as fiscal turbulence.
Regulation can be a little stricter than in some competing jurisdictions. But most clients accept that as a small price to pay for the long-term security of their assets and the sound legal standing of the entities concerned.
In many ways, Curaçao is ahead of the curve in the Caribbean. Globally, financial services are moving towards greater international oversight and regulatory scrutiny.
Curaçao’s stable, compliant financial services sector is attracting clients based on a reputation for probity, privacy and professionalism.