WILLEMSTAD – Employers in Curaçao can now benefit from tax incentives when hiring young people between the ages of 18 and 29. The measure, which went into effect on July 1, is part of a new law aimed at tackling youth unemployment in a structural way, according to Minister of Finance Javier Silvania. 

The legislation grants exemptions from wage tax and employer social security contributions for qualifying young hires. However, the benefit is not automatic. Employers must submit a request to the Tax Office within two weeks of either the start of the fiscal year or the employee's hiring date. 

Requirements for Employers 

To be eligible for the tax relief, employers must meet three key conditions: 

Be in compliance with all tax obligations. 

Have a formal employment contract with the worker. 

Maintain accurate payroll records reflecting use of the incentive. 

In addition, the young employee must be under 30 years old at the time of hiring and registered with the employment office. If the Tax Office does not respond within two weeks, the application is automatically considered approved. 

Overtime Tax Exemption 

The new law also includes a tax exemption on overtime pay for employees earning less than 86,000 guilders annually in 2025. The exemption applies to a maximum of 520 hours per year, or 10 hours per week, and employers must file a separate application for this benefit. 

Adjustment to Investment Fund Yields 

The government has also announced a change to the deemed return on investment for Curaçao-based investment companies. Starting August 1, 2025, the rate will rise from 4% to 10%, giving taxpayers time to adapt to the adjustment. 

These measures are part of a broader strategy by the government to stimulate employment, particularly among youth, while encouraging formal labor practices and increasing tax compliance.