Aruba has its own tax system, completely separate from the Netherlands. Rates and rules differ significantly from Dutch or US tax law. This guide gives residents and business owners a clear overview of what to expect.
Personal income tax (loonbelasting)
Personal income tax in Aruba is progressive, ranging from 7% on the lowest bracket to 52% on income above AWG 141,000 per year (approximately $79,000 USD). Employers withhold loonbelasting from salaries monthly and remit it to DIMP.
Residents must file an annual income tax return (aangifte inkomstenbelasting) by June 30 of the following year. DIMP provides forms and guidance at their office in Oranjestad.
Social premiums
In addition to income tax, residents pay social premiums: AOV (old-age pension) — 4% employee, 6.5% employer. AWW (widows and orphans) — 0.5% employee, 1% employer. AZV (health insurance) — 2.6% employee, 8.9% employer. These are withheld from salary alongside loonbelasting.
BBO — turnover tax
BBO (Belasting op Bedrijfsomzetten) is a 1.5% turnover tax applied to most goods and services sold in Aruba. It is similar to VAT but simpler — it applies to gross turnover, not value added. Businesses collect BBO from customers and remit it to DIMP monthly.
Certain sectors are exempt from BBO, including financial services, healthcare, and education. Export sales are also exempt.
Corporate income tax
Companies registered in Aruba pay corporate income tax (winstbelasting) at a flat rate of 25% on net profits. The tax year follows the calendar year. Returns must be filed within 6 months of year-end, with an extension available on request.
Aruba has tax treaties with the Netherlands and several other countries to prevent double taxation. If you earn income from abroad, check whether a treaty applies to your situation.
Property tax (grondbelasting)
Property owners pay an annual grondbelasting of 0.4%–0.6% of the assessed value of their property. The assessed value is determined by the government and is typically lower than market value. Bills are sent annually and must be paid within 30 days.
Filing and DIMP
DIMP (Departamento di Impuesto) is the Aruban tax authority. Their office is in Oranjestad. Most filings must be done in person or by mail — online filing is limited. It is strongly advisable to work with a local accountant (boekhouder) or tax advisor, especially in your first year.
Penalties for late filing or payment are significant. DIMP can impose fines of up to 100% of the tax owed for serious non-compliance.