Business & Work
Starting and running a business in Aruba
Company registration, work permits, tax obligations, and a practical overview of the Aruban economy — what you need to know before you start.
Corporate tax rate
25%
BBO (turnover tax)
1.5%
Main business registry
KvK Aruba
Currency
AWG (pegged to USD)
The Aruban economy
Aruba's economy is heavily dependent on tourism, which accounts for roughly 70–80% of GDP. The island attracts over 1 million stay-over visitors per year, primarily from the United States, the Netherlands, and Venezuela.
Outside tourism, the economy includes financial services, construction, retail, and a growing remote-work and digital nomad segment. The government has been actively promoting economic diversification, including in the areas of renewable energy and technology.
The Aruban florin (AWG) is pegged to the US dollar at a fixed rate of 1.79 AWG = 1 USD, providing monetary stability. Inflation is moderate and largely imported, given that most goods are brought in from abroad.
Tourism & hospitality
The dominant sector. Hotels, restaurants, tour operators, water sports, and related services.
Financial services
Banking, insurance, and offshore financial structures. Aruba has a stable regulatory environment.
Construction & real estate
Driven by tourism infrastructure and expat housing demand. Active market for contractors and developers.
Retail & trade
Import-dependent retail sector. Duty-free shopping in Oranjestad attracts cruise visitors.
Technology & remote work
Growing segment. Aruba has positioned itself as a remote-work destination with reliable internet infrastructure.
Renewable energy
Government target of 100% renewable energy. Opportunities in solar, wind, and energy storage projects.
Business structures
The main legal entity types available for businesses in Aruba.
NV (Naamloze Vennootschap)
Public limited company
The most common structure for larger businesses and foreign investment. Requires a minimum share capital of AWG 10,000. Shareholders have limited liability. Suitable for businesses with multiple shareholders or those seeking investment.
Min. capital
AWG 10,000
Liability
Limited
VBA (Vennootschap met Beperkte Aansprakelijkheid)
Private limited company (similar to BV/LLC)
Introduced in 2009, the VBA is the preferred structure for small and medium businesses. No minimum share capital requirement. Flexible governance. Most commonly used by expat entrepreneurs and SMEs.
Min. capital
No minimum
Liability
Limited
Sole proprietorship (Eenmanszaak)
Sole trader
Simple structure for individual entrepreneurs. No separate legal entity — the owner is personally liable for all debts. Low setup cost and minimal administration. Suitable for freelancers and small service providers.
Min. capital
None
Liability
Unlimited (personal)
Branch office
Branch of foreign company
A foreign company can register a branch in Aruba. The parent company remains liable. Requires registration at KvK Aruba and a local representative. Used by multinationals and regional businesses expanding to Aruba.
Min. capital
None
Liability
Parent company liable
Registering a business
All businesses operating in Aruba must be registered with the Kamer van Koophandel (KvK) Aruba — the Chamber of Commerce.
Choose your structure
Decide on the legal entity type (VBA, NV, sole proprietorship, or branch). For most expat entrepreneurs, the VBA is the most practical choice.
Draft articles of association
For NV and VBA structures, articles of association (statuten) must be drafted by a notary (notaris) in Aruba. This is a legal requirement and involves notarial fees.
Register at KvK Aruba
Submit your registration documents to the KvK Aruba in Oranjestad. Pay the registration fee. You will receive a KvK number (Chamber of Commerce number) upon approval.
Obtain a business licence
Most business activities require a business licence (bedrijfsvergunning) from the Department of Economic Affairs (DEA). The type of licence depends on your activity. Processing takes 4–8 weeks.
Register for taxes
Register with the Aruban Tax Authority (DIMP — Departamento di Impuesto) for income tax, BBO (turnover tax), and payroll taxes if you have employees.
Open a business bank account
Open a business bank account at one of Aruba's local banks (Aruba Bank, CMB, RBC). Requires your KvK registration, articles of association, and identity documents.
Tax overview
Aruba has its own tax system, separate from the Netherlands. Key taxes for businesses and employees:
Tax
Rate
Description
Corporate income tax (Winstbelasting)
25%
Applies to profits of NV and VBA entities. Various deductions are available. Small businesses may qualify for reduced rates or exemptions in certain sectors.
BBO (Belasting op Bedrijfsomzetten)
1.5%
Turnover tax applied to most business revenues. Charged on gross turnover, not profit. Applies to goods and services sold in Aruba. Paid monthly or quarterly.
Personal income tax (Inkomstenbelasting)
Up to 52%
Progressive tax on personal income. Rates range from 7% to 52%. Various deductions apply (mortgage interest, pension contributions, etc.). Effective rates for most earners are lower than the top rate.
Payroll tax (Loonbelasting)
Varies
Withheld by employers from employee salaries. Rates mirror the personal income tax brackets. Employers must also contribute to social insurance funds (SVB).
Transfer tax (Overdrachtsbelasting)
6%
Applies to the transfer of real estate. Paid by the buyer. Applies to both residential and commercial property transactions.
Import duties
Varies
Aruba levies import duties on most goods brought to the island. Rates vary by product category. A significant cost factor for businesses that import inventory or equipment.
Work permits
Foreign nationals who wish to work in Aruba — whether employed or self-employed — require a work permit (arbeidsvergunning) in addition to a residence permit. Work permits are issued by DIMAS.
Employers hiring foreign workers must demonstrate that no suitable local candidate was available (the 'local labour market test'). This requirement can be waived for specialised roles or where the employer can demonstrate a genuine skills gap.
Employee work permit
Applied for by the employer on behalf of the employee. Requires a signed employment contract, proof of the local labour market test, and supporting documents. Tied to the specific employer and role.
Self-employed work permit
Required for freelancers and business owners. Applied for alongside the business licence. Requires proof of business registration, a business plan, and evidence of sufficient capital.
Intra-company transfer
For employees of multinational companies being transferred to an Aruban entity. Simplified process compared to standard work permits. Requires proof of the corporate relationship.
Key points
- Work permits are issued by DIMAS alongside the residence permit
- Employers must prove no suitable local candidate was available
- Permits are role- and employer-specific — changing jobs requires a new permit
- Processing time: 4–12 weeks
- Self-employed permits require business registration first
Practical tips for doing business
Hire a local accountant
Aruban tax law is complex and different from Dutch or US rules. A local accountant (boekhouder) or tax adviser is essential, especially for corporate structures and BBO compliance.
Use a local notary
Company formation requires a notary. Notaries in Aruba are regulated professionals — use one with experience in commercial law. Expect notarial fees of AWG 1,500–5,000 for company formation.
Understand the labour market
The local labour pool is relatively small. Competition for skilled workers is high, particularly in hospitality, construction, and technology. Many businesses rely on a mix of local and expat staff.
Banking can be slow
Opening a business bank account takes time — often 2–4 weeks. Banks require extensive documentation. Start the process early. CMB and Aruba Bank are the most commonly used by businesses.
Build local relationships
Aruba is a small island. Business culture is relationship-driven. Networking through the Chamber of Commerce, industry associations, and community events is valuable for finding clients, partners, and staff.
Factor in import costs
Most business inputs are imported. Import duties, shipping costs, and lead times add significantly to operating costs. Build these into your business plan and pricing.
In-depth guides
Explore more topics