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Photo of stairs near the beach in Aruba

Aruba Tax Information 

A concise overview of tax and customs duty data 


Location, History and Legal System

Aruba, a small tropical island (179 sq. km; 69.1 sq. miles) located in the Caribbean at approximately 24 km (15 miles) north of the northern coast of Venezuela, was discovered around 1500 by the Spanish. In 1636, the Dutch took control of the island. Up to 1954, Aruba was part of the Dutch colony Curaçao.

In 1954, that colony became the Netherlands Antilles, an autonomous country within the Kingdom of the Netherlands, that consisted of the islands of Aruba, Curacao, Bonaire, Saba, St. Eustatius and St. Maarten.

In 1986, Aruba became an autonomous country within the Kingdom of the Netherlands (“Status Aparte”) and since then has its own government, legislative body, and currency (Aruba florin or Afl. with a fixed exchange rate of US$1.00 equaling Afl. 1.79). The Joint Court of Justice of Aruba, Curaçao, St. Maarten, Bonaire, St. Eustatius and Saba administers justice in first instance and in appeal in Aruba. Judges of that Joint Court are appointed by the Queen of the Netherlands. The Joint Court handles, among others, tax cases. With respect to legal questions, appellate judgments can be appealed to the Supreme Court of the Netherlands.

Tax Legislation

Aruba’s tax legislation is still, to a certain extent, based on that of the former Netherlands Antilles, which in turn is based on old Dutch and old Dutch colonial tax legislation. Aruba is, however, gradually deviating from that of the former Netherlands Antilles, as a result of differing political, economic and social developments.

Tax matters

Aruba’s tax legislation is still, to a certain extent, based on that of the former Netherlands Antilles, which in turn is based on old Dutch and old Dutch colonial tax legislation. Aruba is, however, gradually deviating from that of the former Netherlands Antilles, as a result of differing political, economic and social developments.

General Taxes Ordinance

A law in Aruba is called an “ordinance.” There is a general tax ordinance that applies directly to almost all tax laws. It contains a general set of rules that apply to tax residency, filing of tax returns, assessment of taxes, filing of objections, sanctions on non-compliance, etc

Income Taxation of Resident Individuals

Resident individuals are subject to income tax (“inkomstenbelasting”) on their worldwide income. Whether an individual is a resident is determined by taking into account all facts and circumstances such as whether the individual has an abode in Aruba; the place of residence of members of his family; the duration of his abode and that of the members of his family in Aruba; registration at the Civil Register, having financial interests in Aruba, etc.

Taxable Income

Taxable income of a resident individual consists of the net worldwide proceeds, which are the gross proceeds less deductible expenses, from the following sources:


a. Real property

b. Movable property

c. Business and labor

d. Annuities

In general, only income from the above-mentioned sources is taxable. Capital gains and capital losses on the alienation of sources of income are generally not taxable or tax deductible. The most important exceptions are:

  1. Capital gains on the alienation of Substantial Interest Shares. If a shareholder owns, directly or indirectly, together with his/her spouse, and certain members of his/her family, more than 25% of the shares of a corporation, those shares qualify as Substantial Interest Shares;

  2. Capital gains and losses on the alienation of a business or business assets.


In the case of married couples who do not live durably separated, the items of net income are attributed to the spouse with the highest so-called Personal Labor Income. Personal Labor Income includes the net proceeds from business and employment. The net proceeds from business and employment (wages and pensions), however, are excluded from the attribution of income rule.


Resident individual’s interest earned on savings accounts at local or foreign banks are tax exempt.

Loss Carry Forward

If the calculation of taxable income of a resident individual results in a loss, that loss can be carried forward against taxable income of the following five years. Due to the coronavirus pandemic, loss carry forward has been extended by two (2) years for losses incurred during the years 2020, 2021, and 2022.

Income Tax Due

To calculate personal income tax due by a resident individual, an exempt amount must be deducted from his/her taxable income resulting in “Table Income.” The “Tax Table” is applied to Table Income. For Table Income that exceeds the amount mentioned in Column I but does not exceed the amount mentioned in Column II, income tax due is the amount mentioned in Column III plus the percentage mentioned in Column IV on the amount that Table Income exceeds the amount mentioned in Column I, rounded down in florins.

Column I
Column II
Column III
Column IV
Eggs & Gluten


Dividends earned by resident individuals are taxed at a flat rate of 25%. For the years 2018 up until 2023, that rate has been reduced to 10%. Dividends distributed from profits at year-end 2022, distributed in 2022 and 2023, are subject to a reduced tax rate of 10%. The 10% Aruba dividend withholding tax (see below) can be credited against personal income tax due.

AOV-AWW-AZV Premiums

Although technically not taxes, general social security premiums are also levied by the Tax Department from resident individuals through the personal income tax return system. General old-age pension (“Algemene Ouderdoms Verzekering” or AOV), general widows and orphans insurance (“Algemene Weduwen- en Wezenverzekering” or AWW), plus general medical insurance (“Algemene Ziektekosten Verzekering” or AZV) premiums are 14.5%, 1%, and 10.5%, respectively, for a total of 26% of gross income less deductible expenses of up to Afl. 85,000.

Income Taxation of Resident Corporations

Resident corporations are subject to corporate income tax, called profit tax (“winstbelasting”), on their worldwide profit. Whether a corporation is a resident, is determined by taking into consideration all facts and circumstances. The most important is the place of effective management of a corporation. If the place of effective management of a corporation is in Aruba, it will be a resident corporation for profit tax purposes. If the place of effective management of the corporation cannot be determined, other factors such as its statutory seat, its most important place of business, the place where its shareholders’ meetings are held, etc., will be taken into account. However, if the legal form is governed by Aruba law, Aruba will be the country of residence.

Most of the resident corporations subject to profit tax are the “naamloze vennootschap” (N.V.) and the “vennootschap met beperkte aansprakelijkheid” (VBA) governed by Aruban law.

A resident corporation’s profit includes all proceeds under whatever name and in whatever form, derived from capital whether invested in a business or not. Profit also includes capital gains and losses from the alienation of assets of the corporation. From the proceeds, related expenses are deductible as is the depreciation of business assets. Taxable profits are basically financial statements (prepared in accordance with internationally accepted accounting standards) profits adjusted for profit tax purposes.

Dividends received from domestic and qualifying foreign subsidiaries are exempt. A qualifying foreign subsidiary is a subsidiary whose shares are not held as a passive investment and that is subject to a tax on profit.

The law contains transfer pricing rules based on the “at arm’s length” principle. In addition, there are specific rules to avoid base erosion.

If the calculation of taxable profit results in a loss, that resident corporation’s loss can be carried forward against taxable profit of the following five years.

A resident corporation’s profit tax rate is 25%.

Withholding Taxes

Distributions of dividends by resident corporations are subject to a 10% dividend withholding tax (“dividendbelasting”). There are no withholding taxes on interest and royalties.

Avoidance of Double Taxation and Exchange of Information

Aruba has established approximately 35 Tax Information Exchange Agreements (TIEAs) aimed at fostering transparency and cooperation in tax matters. Despite this network, Aruba has not ratified any comprehensive double taxation avoidance treaties (DTAs) that cover the full spectrum of tax issues. However, it has entered into one treaty focused on delineating taxing rights for individuals and two treaties designed to enhance economic relationships. Unique to its status, Aruba engages in a quasi-treaty arrangement with the other countries of the Kingdom of the Netherlands, effectively preventing double taxation in a manner akin to formal DTA's.


To the extent that double taxation is not prevented otherwise, the unilateral Decree for the avoidance of double taxation may apply to income from foreign enterprise, foreign employment, foreign real estate, and similar cross-border economic activities, providing essential relief for individuals and entities engaged in international business.

Income Taxation of Non-Resident Individuals

Non-resident individuals with certain Aruba sources of income — such as real property located in Aruba, loans secured by mortgage on such real property, businesses carried on in Aruba and Substantial Interest Shares in resident Aruba corporations — are subject to income tax in Aruba on their domestic taxable income, if any. The same tax tables and tax rates for resident individuals are applicable to domestic taxable income.

Income Taxation of Non-Resident Corporations

Non-resident corporations are subject to profit tax on profits from:

  1. Businesses if and to the extent the profits are derived through a permanent establishment in Aruba;

  2. Real property located in Aruba or related rights;

  3. Loans secured by mortgage on real property located in Aruba.


The permanent establishment concept in the so-called OECD-model tax convention may serve as guideline for the interpretation of permanent establishment for profit tax purposes. A permanent establishment is in any case:

  1. a permanent representative;

  2. a building site or construction, excavation, maintenance, cleaning, assembly or installation project if the duration of the execution or the work exceeds a period of more than 30 days.


The profit tax rate is the same as that for domestic corporations: 25%.

Land Tax

Land tax (“grondbelasting”) is levied on real property located in Aruba. The tax is levied each year from persons owning such property at the beginning of the tax year (January 1). The tax basis, which is determined once every five years, is either based on the value determined by the yearly proceeds or the true economic value of the property whichever is higher. For resident individuals, the tax rate is based on a sliding scale with a maximum of 0.6%. For everyone else the tax rate is 0.6%.

Real Property Transfer Tax

On deeds and sentences with respect to the transfer or acquisition pursuant to inheritance, of real property located in Aruba, a real property transfer tax (“overdrachtsbelasting”) is due. The tax is based on the value mentioned in the notarial deed of transfer unless it concerns an acquisition pursuant to inheritance in which case the value is the true economic value of the property.


If the property transferred will serve as the primary abode of the acquirer, the tax rate of the value up to Afl. 250,000 is 3% and on the value above Afl. 250,000, 6%.


In all other cases:

  1. if the value is Afl. 250,000 or less: 3%;

  2. if the value is more than Afl. 250,000: 6%.


The acquisition of the primary abode by a blood relative in direct line or the surviving spouse, is exempt.

Inheritance Tax

Effective July 1, 2018, the levy of inheritance tax (“successiebelasting”), gift tax included, and of transition tax (“overgangsbelasting”) were abolished.

Turnover and Health Taxes

Turnover tax (“Belasting op bedrijfsomzetten” or BBO), additional provisions PPP projects tax (“Belasting additionele voorzieningen PPS projecten” or BAVP) and earmarked AZV or health tax (“Bestemmingsheffing AZV” or BAZV) are levied on business turnover of entrepreneurs. Business turnover is the total of remunerations received by entrepreneurs for the delivery of goods or the rendering of services in Aruba. An entrepreneur is anyone who carries on a profession or business independently as well as anyone who exploits an asset to obtain sustainable returns from it. The latter means that e.g. the owner of an apartment who rents out the apartment is subject to BBO-BAVP-BAZV.


The total BBO-BAZV-BAVP rate is 7% of business turnover.

Foreign Exchange Tax

A foreign exchange tax (“deviezenprovisie”) of 1.3% is levied on outgoing foreign exchange transactions. It is primarily charged by the local banks and paid over to the Central Bank of Aruba.

Exchange Margin Tax

A special Exchange Margin Tax (“koersmargevergoeding”) is levied on all foreign exchange sales and purchase transactions of the local banks on behalf of the Central Bank of Aruba. Sales transactions are subject to 3/8 percent less 1/8 percent of purchase transactions. The local banks charge the tax by levying 3/8 percent or 2/8 percent on all foreign exchange sales transactions.

Import Duties and Excise Taxes

Import duties (“invoerrechten”) are levied on goods imported into Aruba. Rates vary between 0% and 57% ad valorem. The most common rate is 12% but some goods, like tobacco, are subject to a 57% import duty. For cigarettes, however, the duties are levied at 12% plus excise taxes. Certain food products and tourist articles are exempt. Excise taxes (“accijnzen”) are levied on cigarettes, beer, alcohol, and mineral fuel oils.

Resource Links

Below is a list of useful sites for additional information. The language of the site is indicated in parentheses:


Aruba Government: (English)
Aruba Parliament: (Dutch)
Common Court of Justice: (English)
Central Bank of Aruba: (English)
Chamber of Commerce: (English)
Tax Department: (Dutch)
Customs Department: (Dutch, English, Spanish)
Department of Economic Affairs and Industry of Aruba: (English)


Our firm specializes in Aruba tax and related law. The above data is provided only for informational purposes about the current tax laws of Aruba. The information may not reflect the most current Aruba legal developments and is not intended as legal advice. Please retain a competent Aruba attorney for advice on your particular situation or circumstances before engaging in any transaction in Aruba.

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