Starting a business in
🇦🇼Aruba
Checked November 9, 2026 · How we score
Corporate tax
22%
Top income tax
52%
Setup from
$2,500
all-in, first year
Time to form
14 days
visit usually needed
What is the corporate tax rate in Aruba?
The headline corporate tax rate in Aruba is 22% in 2026, and individuals pay up to 52%. 22% profit tax since the 2023 tax reform (cut from 25%). Aruba free-zone companies can pay 2%, and approved investment-promotion (IPC) companies 10–15%. New 2026 incentives offer profit tax relief for investment in designated downtown areas.
| Corporate income tax | 22% 22% profit tax since the 2023 tax reform (cut from 25%). Aruba free-zone companies can pay 2%, and approved investment-promotion (IPC) companies 10–15%. New 2026 incentives offer profit tax relief for investment in designated downtown areas. |
|---|---|
| Personal income tax (top) | 52% 2026 income tax bands: 0% up to AWG 34,930, 21% to AWG 63,904, 42% to AWG 135,527 and 52% above. Residents are taxed on worldwide income; non-residents only on Aruban-source income. |
| Tax system | Worldwide income |
| Capital gains tax | 0%No tax on private capital gains for individuals; gains from business assets are taxed as ordinary profit. |
| Dividend withholding (non-residents) | 10% |
| VAT / GST | 7% |
| Social security | Aruba has no VAT. Instead there are turnover taxes: BBO 2.5%, BAVP 1.5% and BAZV 3%, combined around 7% on business turnover. Employees and employers also pay general health insurance and pension premiums. |
Forming a company in Aruba
| Usual entity | AVV (Aruba exempt company) or NV (limited liability company) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $2,500–$6,000 |
| Annual running cost | $3,000–$8,000 |
| Time to incorporate | 14 days |
| Form remotely as a foreigner | No |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
Aruba has no dedicated digital nomad or golden visa. Foreign nationals need a work or residence permit tied to employment, a business or retirement; the Dutch Kingdom controls nationality rules, so citizenship by investment is not available.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 4/5 (1 = easiest) |
Taxes for individuals living in Aruba
Aruban tax residents are taxed on worldwide income. Residence is decided by where your centre of existence is, so spending time in Aruba and having a home there points to residency.
| Foreign income of residents | Taxed |
|---|---|
| Income tax structure | Progressive rates |
| Inheritance / estate tax | 6%Inheritance tax is progressive and the rate depends on the heir's relationship to the deceased; children and spouse pay the lowest rates, around 2% to 6%. |
| Wealth tax | No |
| Annual property tax on your home | Yes |
| Exit tax when you leave | No |
| When you become tax resident | Resident if your centre of existence (home, family and economic ties) is in Aruba; no fixed day count. |
Special tax regimes
Free zone regime
Companies operating in Aruba's free zones in Oranjestad and Barcadera can pay a 2% corporate rate and enjoy import duty and turnover tax relief, subject to qualifying activity.
Investment-promotion (IPC) status
Approved investment-promotion companies pay 10–15% profit tax instead of 22%, with conditions on investment and employment.
AVV exempt company
The Aruba exempt company (AVV) historically offered a 2% rate for offshore use; since 2021 reforms substance and an Aruba presence are needed.
Pros and cons
Why founders pick Aruba
- Stable legal system based on Dutch civil law
- Free-zone and IPC rates of 2% and 10–15%
- US dollar-pegged currency and strong tourism economy
- No CGT for private individuals
Watch out for
- Top personal rate of 52% is among the Caribbean's highest
- Standard corporate rate of 22%
- Turnover taxes add cost for local businesses
- Limited residency routes for non-Dutch nationals
Best for: Tourism, hospitality and real estate investors · Companies using the free zone for trade and logistics · Founders who want Dutch-law stability in the Caribbean
Aruba: common questions
What is the corporate tax rate in Aruba?
22% profit tax following the 2023 tax reform. Free-zone companies can pay 2%, and companies with investment-promotion status pay 10–15%.
How much is income tax in Aruba?
For 2026, 0% up to AWG 34,930, 21% up to AWG 63,904, 42% up to AWG 135,527 and 52% above. Residents are taxed on worldwide income.
Does Aruba have VAT?
No. Aruba has turnover taxes (BBO, BAVP and BAZV) totalling around 7% on business turnover instead of a VAT. A VAT proposal has been postponed.
Is Aruba a tax haven?
No. Aruba has relatively high income taxes and is part of the Kingdom of the Netherlands. It offers specific low-tax regimes for free-zone and approved companies but is not a zero-tax jurisdiction.
Can foreigners live in Aruba tax-efficiently?
Not especially. Residents pay up to 52% on worldwide income and Aruba has no digital nomad or golden visa, so it suits people with business or employment reasons to be there rather than tax planning.
Sources
- Departamento di Impuesto (Aruba Tax Department)
- Aruba Chamber of Commerce
- Deloitte: International Tax Aruba Highlights 2026
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.