A Private Fund Foundation (PFF), known in Dutch as “Stichting Particulier Fonds” (SPF), is a legal entity protecting assets, investments or funds. Foreigners can create and fully participate in a PFF. With no members or shareholders.
Unlike most private foundations, the PFF can make distributions to the incorporators and others without having a social or charitable purpose. Beneficiaries, if named, can have general or limited rights.
A PFF is formed (incorporated) by the execution of a written legal document (Foundation Deed) in front of a local civil law notary. The deed is similar to a corporate articles of incorporation as it details the purposes, objectives, initial assets, and operations of the foundation.
A Private Fund Foundation can own real estate. However, actively buying and selling real estate may be considered a business or enterprise. Collecting rent from tenants in owned real estate is not a business or an enterprise.
Private Found Foundations are exempt from profit taxes (corporate and income taxes). This exemption rests upon one condition: the PFF does not operate a business or an enterprise for profit. However, the law states that investment activities and acting as a holding company do not qualify as business or an enterprise.
What are the benefits of a Private Fund Foundation in Sint Maarten?
Total Foreign Participation: A Sint Maarten PFF can be formed by a foreign founder and have foreign beneficiaries.
No Taxes: The PFF is totally tax exempt unless actively engaged in business or enterprise activities for profit. However, U.S. residents and everyone subject to global income taxes must report all income to their governments.
Privacy: If beneficiaries are appointed, their names never appear in any public records.
Private Fund Foundations are widely used in Sint Maarten to protect real estate assets and point specific beneficiaries, a PFF will help you protect your investment for future generations.
Every situation is unique, and we, therefore, advise you to consult with a tax advisory firm to tailor your estate planning.
We can always help you opening up a PFF in Sint Maarten fairly quick
Contact Pablo Yahuda for more information
Disclaimer: Our articles are not intended as (legal) advice and do not take your personal circumstances into consideration. BrightPath does not accept any liability for damages resulting from using the provided information. We highly recommend you to seek personalized advice from us or before you act or fail to act because of the content of our articles. BrightPath is a privately-owned consulting firm that assists clients with filing applications for residence permits and/or business licenses at the relevant government departments. None of our directors, employees or agents hold or have held any position with the government of Sint Maarten and our service does not provide for any preferential treatment with regards to any application. All information provided and statements made only serve to provide you with a general understanding of immigration, residence and business incorporation procedures on Sint Maarten.
