Netherlands Antilles Geography
The
Netherlands Antilles consist of two groups
of islands in the Caribbean Sea. One group
(the Leeward Islands) includes Curacao and
Bonaire and lies about 50 km north of Venezuela;
the other group of three islands (the Windward
Islands), St Maarten, St Eustatius and Saba
are 160 km east of Puerto Rico. Miami is
2.5 hours by air from Curacao, the largest
and dominant island, which has the capital
Willemstad.
The
land area is 960 sq km, with a coast line
spanning 364km. The climate is tropical
(12 degrees from the equator), but cooled
by northeast trade winds. Average temperature
is 27 C. Rain falls from October to February,
mostly at night.The landscape is generally
hilly with a volcanic interior. The highest
point is 862m at Mount Scenery. Natural
resources include phosphates and salt, but
only 10% of the land is cultivable.
Hurricanes
can occur between July and October but rarely
threaten Curacao and Bonaire which lie south
of the Caribbean hurricane belt; only three
have come near this century.
BACK
TO TOP
Netherlands
Antilles Population Language and Culture
In July 2007 the population was estimated
at 223,652 with an annual growth rate of
0.79%. Of the total population, around 144,000
live on Curacao. The official (and used)
language is Dutch, but 90% of the local
population speak Papiamento, a Creole dialect
which is a mixture of Spanish, Portuguese,
Dutch and English. Spanish and English are
also widely spoken, particularly in Willemstad.
Ethnically, the population is 85% mixed
black, the balance being Carib Amerindian,
white and East Asian. 80% of the population
is Catholic, with substantial Protestant,
Jewish and Muslim communities. There is
religious and ethnic harmony.
The
islands were discovered by the Spanish in
1499; the peaceful native inhabitants, a
tribe of Arawak Indians, were mostly transported
to Hispaniola. In 1634 Curacao fell to the
Dutch and became an important base for expeditions
against the Spanish. During the 18th century
Curacao became a trading port for pirates,
American rebels, Dutch merchants, Spaniards
and Creoles from the mainland. The English
took Curacao briefly in 1800 but Dutch rule
was restored in 1816 and the port was declared
free.
BACK
TO TOP
Netherlands
Antilles Government
The Netherlands Antilles is a part of the
Kingdom of the Netherlands, with full autonomy
in internal affairs; it is a parliamentary
democracy and is politically stable. The
Netherlands government is responsible for
defense and foreign affairs. The legal system
is based on Dutch civil law but includes
some influence from English common law.
Appeals from the Netherlands Antilles courts
are to the Netherlands Supreme Court in
the Hague.
The
Queen of the Netherlands is the Head of
State. A federal or central government takes
care of state matters, comprising a Governor
appointed by the Queen for a period of 6
years, an appointed Council of Ministers,
and an elected 22-member parliament (De
Staten) which serves a term of four years.
There are a number of small political parties.
The Government formed after elections in
2002 collapsed in April, 2004, and a temporary
coalition was put in power. Following elections
held in January 2006, the Partido Antia
Restruktura (PAR) won 16 of 22 seats in
parliament.
A
constitutional crisis erupted in 2004 due
to irreconcilable differences between the
constituent islands, and a joint Commission
appointed by the Netherlands and the local
government concluded that the jurisdiction
should be broken up, with the islands of
Curacao and St Maarten becoming autonomous
countries alongside the Netherlands and
the Caribbean island of Aruba, whilst the
remaining three islands - Saba, Bonaire
and St. Eustatius - should be brought under
the direct control of the Dutch government
in The Hague.
In
December, 2004, the Dutch cabinet approved
this proposal, saying that the new constitutional
arrangement must guarantee the quality of
the judicial system, sound governance and
responsible financial management.
In
January, 2005, the islands formed a series
of working groups to discuss detailed implementation
of the new constitutional proposals.
Pending
such changes, the central government deals
with tax, communications, public health,
education, banking, law and order, company
registration and economic control. An Island
government deals with local affairs; it
consists of a Lieutenant-Governor appointed
by the Queen, and an Executive Council appointed
by an elected Island Council.
In
January, 2006, representatives from the
Dutch government, Aruba and the five islands
of Bonaire, Curacao, Saba, St Eustatius
and St Maarten agreed a roadmap towards
new constitutional relations at the latest
Round Table Conference on constitutional
affairs.
Bonaire,
Saba and St. Eustatius will attain the new
status of “specific nature” within the Kingdom
and have direct ties with the Netherlands,
while the “aimed end perspective” for Curaçao
and St. Maarten is country status within
the Kingdom.
It
is the aim of the agreement to dissolve
the Netherlands Antilles by 15th December,
2008.
BACK
TO TOP
Netherlands Antilles Relationships
with EU
As an overseas territory of the Kingdom
of the Netherlands, the Netherlands Antilles
is an associate of the EU. Its citizens
carry EU passports, and have free rights
of entry, residence, work etc in the EU.
In
so far as the Netherlands Antilles applies
the common import tariff of the EU single
market, it can freely export products into
the EU which it has sourced externally,
without additional processing. Products
originating in the Netherlands Antilles,
or which have undergone 'substantial economic
transformation' there, have EU origin.
However
the Netherlands Antilles does not form part
of the EU fiscal area, and, somewhat analogously
to the British Dependent Territories, does
not apply Dutch or EU taxes.
BACK
TO TOP
Netherlands
Antilles Economy and Currency
The currency is the Netherlands Antillean
guilder, gulden or florin (these terms are
used interchangeably). The rate of exchange
is fixed against the US dollar at US$1 =
ANG1.790.
The
Netherlands Antilles are not naturally well-favoured
with domestic resources; due to the lack
of arable land and water, agriculture accounts
for only around 1% of GDP. The economy is
largely based on tourism, petroleum processing/trans-shipment
and offshore finance. Almost all the consumer
goods are imported from Venezuela and the
US; as a result local inflation tends to
reflect international levels.
After
oil was discovered in Venezuela, the Dutch-British
Shell oil company built a refinery on Curacao,
which dominated exports until it was closed
in 1985, with dismal effects on the economy
and employment. A limited re-opening has
helped economy to grow steadily more recently,
but unemployment is still high by international
standards.
The
Government's fiscal position has deteriorated
sharply in recent years, and there is high
debt with a substantial annual budget deficit.
The islands receive approximately US$100m
a year in aid from Holland and international
agencies. GDP per head was $US16,000 in
2004, and has tended to remain static in
recent years, although 2005 figures showed
St Maarten and Bonaire tending to grow more
strongly than Curacao.
GDP
growth was projected to accelerate to about
1½ percent in 2006.
The
offshore financial sector began during the
German occupation of Holland in the Second
World War, when Dutch companies sought corporate
and financial refuge, and has developed
steadily ever since, giving Curacao in particular
a more sophisticated business infrastructure
than most countries in the region.
The islands have good natural harbours,
and there is a ship repair facility in Curacao.
BACK
TO TOP
Netherlands Antilles
Entry and Residence
Nationals of Belgium, Germany, Luxembourg
and the Netherlands can enter using national
identity cards; nationals of the US can
enter with voter registration cards or birth
certificate; nationals of Canada with birth
certificates or proof of citizenship; nationals
of Brazil, Venezuela, Mexico, San Marino
and Trinidad & Tabago can enter with
national identity cards. All other nationals
need passports.
Entry
for tourist purposes does not require a
visa, except for nationals of most former
Eastern bloc countries, China, Cuba, Dominican
Republic, Haiti, North Korea, Libya, Cambodia
and Vietnam. Tourist entry is for 14 days,
and another 14 days on local application,
except for Belgium, the Netherlands, Germany,
Luxembourg, the UK, the US, Spain and a
number of South American, African and other
countries, for whom it is 90 days (and another
90 days on local application).
NB
These lists can change, and you should check
with your travel agent before travelling.
Visas
can be obtained from Dutch embassies around
the world. In all cases of tourist entry
a return or onward ticket is required.
Longer
stay, for work or residence, requires residence
and/or work permits, unless you are Antillean,
or already a long-time resident (more than
10 years). Residence permits have to be
applied for in person at the Governor's
offices; a good deal of personal, medical
and financial information and documentation
is required. Work permits have to be applied
for by employers, after advertising a position
in local newspapers and failing to fill
it.
Prominent
political figures met in the Netherlands Antilles in mid-2005 to discuss a new project
aimed at tightening up the jurisdiction's
immigration procedures. Its main objective
is to prevent undesirable goods and persons
from entering the Netherlands Antilles and
Aruba. It also seeks to prevent illegal
movement of persons and goods from the Dutch
Caribbean territories to the Netherlands.
In
April 2006, it emerged that the
St Maarten authorities were studying proposals
that would streamline the process for applying
for residency and work permits in the jurisdiction,
a system which attracts much criticism for
its opacity and complexity.
Meanwhile,
i n early March 2007, it was announced that
a protocol had been signed by Justice Minister
David Dick and the Lt. Governors of the
islands of the Netherlands Antilles for
establishing a new organisation that will
be in charge of immigration issues.
When
operative, the new organisation will deal
with the administrative work in connection
with issuing residence permits, with the
police force taking sole responsibility
for border control.
BACK
TO TOP
Netherlands Antilles Business
Envionment
International (offshore) business in the
Netherlands Antilles takes place largely
in Willemstad on Curacao; here the business
and telecommunications infrastructure is
good, but in other regions much less so.
There
are no government restrictions on foreign-owned
businesses in the Netherlands Antilles,
and inwards investment is encouraged. The
strongest commercial links are with the
Netherlands and the United States, and this
is reflected in the available selection
of local professional services and their
personnel and skills. Likewise, there is
a sophisticated financial structure in place
which is based on a Netherlands model.
For
anglo-saxon or non-European investors, the
dominant role of the civil code in local
business law must be carefully considered.
While for those who are familiar with civil
code jurisdictions, it offers a perfectly
workable and effective business environment,
others, especially non-Dutch-speaking others,
may find it strange at best, or excessively
slow, bureaucratic and expensive at worst.
The
close connections of the Dutch Antilles
with their 'parent' country, and the EU,
mean that the jurisdiction is comparatively
'leaky' as regards banking secrecy. The
Netherlands Antilles preserves a reasonable
degree of fiscal secrecy, but it is not
among the top players in this respect, and
the jurisdiction was obliged to accept the
EU Savings Tax Directive from 2005.
BACK
TO TOP
Netherlands Antilles Free
Trade Zones
Free trade zones are located at the harbour
at Willemstad, the Hato-Curacao international
airport and the Industrial Park. The free
zones are secure and permanently maintained;
they are fully serviced, and have telecommunications
connections.
The
free trade zones are an effective distribution
centre for export to the Caribbean, Americas
and the EU. There are no customs duties
imposed for imports, trans-shipment and/or
export of goods; foreign exchange transactions
in respect of free zone goods are exempt
from commission. Twenty five percent of
total sales may be made to the local market.
Profits
on export sales from the free zones are
taxed at 2%.
As
of April 1, 2001, special tax legislation
for international Internet companies on
Curacao came into force to act as an incentive
to persuade e-commerce companies to relocate
their activities to the Island. The new
law replaced the old Free Zone law and governs
'E-Zones'. Only companies with a capital
divided into shares may perform activities
in the e-zones including trading or providing
services to companies located outside the
Netherlands Antilles.
A
company may be allowed to conduct business
with other firms located in an e-zone but
the company has to apply to the local authority
before doing so. If given the go ahead the
company must meet certain criteria relating
to price setting, quality of the goods and
services on offer and the distribution of
goods. The turnover generated through local
business may not exceed 25% of the total
turnover.
In
terms of profit tax the profit of companies
within the e-zones is taxed at 2% - including
surtax - until January 1, 2026. This rate
is not applicable on the profit of an e-zone
company if it is generated by the sale of
goods or services to companies located in
the Netherlands Antilles or generated through
the rendering of services to affiliated
companies located in the country. In addition
there is no import duty or turnover tax
charged on goods entering the e-zones.
BACK
TO TOP
Netherlands Antilles Import and Foreign
Capital
The Central Bank of the Netherlands Antilles
regulates exchange control. Imports and
exports may be transacted in any convertible
currency except Netherlands Antilles guilders.
Foreign exchange dealings are reported for
statistical purposes only (!).
A licence is required for the investment
of any foreign capital into the Netherlands
Antilles and is only permitted if the investment
enhances the economy and social environment
of the jurisdiction. A license is also necessary
for the repatriation of capital and earnings
from the Netherlands Antilles. Licenses
are usually granted as there are no laws
contrary to such repatriation.
Offshore
businesses in the Netherlands Antilles are
exempted from foreign exchange restrictions.
BACK
TO TOP
Netherlands Antilles Foreign
Investment Regime
Incentives are available to foreign investors
including reduced rent of up to 40 per cent
for buildings in the free zone (e-zones,
see above); duty free building materials,
machinery and equipment; an annual investment
allowance of 8 per cent on the total investments
for the first two financial years; unlimited
use of carry-over losses incurred over the
first four years of the company's business.
A business Development Scheme is available
to provide export assistance. Financing
assistance is available through OBNA and
Korpodeko, and trade agreements with the
EU and USA are established.
Further
investment incentives and subsidies are
available to both foreign and domestic businesses
located in the jurisdiction.
BACK
TO TOP
