The treaty seeks to eliminate double taxation and prevent tax evasion in cross-border transactions involving taxpayers from the Netherlands, Curacao, and Cyprus.
The Netherlands Council of Ministers approved the first-ever income tax treaty between Curacao and Cyprus on 29 August 2025.
Signed on 23 April 2025, the treaty aims to eliminate double taxation on income and prevent tax evasion or avoidance in cross-border transactions involving taxpayers from the Netherlands, Curacao, and Cyprus.
The treaty will take effect after the exchange of ratification instruments and will apply starting 1 January of the year following its entry into force.
As a constituent country of the Kingdom of the Netherlands, Curaçao can negotiate bilateral tax agreements under certain conditions. For instance, signing tax treaties requires authorisation from the Dutch Council of Ministers, and the Dutch parliament must approve ratification.
Earlier, the Dutch Council of Ministers authorised the Minister of Foreign Affairs to sign an income tax treaty with Cyprus on behalf of Curacao on 4 April 2025.
