In December 2025 and early 2026, Aruba introduced a coherent package of fiscal incentive measures. These measures are aimed at improving the business climate, attracting (foreign) investment, and promoting sustainable economic growth in Aruba.
1. Start‑up regime for profit tax and BBO in promising sectors
As of January 1, 2026, Aruba has introduced a specific start‑up regime within the framework of the profit tax and the business turnover tax (BBO). This regime is intended for newly incorporated companies that are active in government‑designated promising sectors, including:
- knowledge economy
- creative industries
- sustainable energy
- logistics
- commercial agriculture
Subject to certain conditions, the regime provides targeted tax incentives during the first five financial years following incorporation, including:
- benefits under the profit tax;
- facilities under the BBO;
- relief with respect to the customary salary rules under wage tax and income tax.
The regime applies exclusively to companies that are incorporated and established in Aruba on or after January 1, 2026 and that are subject to profit tax. Companies operating under the free zone regime are excluded from this regime.
2. Tax incentives for redevelopment in Oranjestad and San Nicolas
In addition, as of 1 January 2026, the Favourable Fiscal Policy for the Promotion of the Economic Development of Oranjestad and San Nicolas has entered into force. Pending formal legislation, this policy introduces temporary tax incentives to stimulate the redevelopment of obsolete commercial and residential real estate in the city centres.
Subject to certain conditions, local and foreign investors may qualify for:
- an exemption from profit tax and dividend tax for a period of 10 years;
- an exemption from transfer tax, BBO and AZV destination levy for a period of 2 years.
These incentives apply exclusively to income, distributions and transactions that are directly related to the redevelopment of real estate within the designated areas. Where the exemption regime cannot be applied, accelerated depreciation of development and renovation costs may be available. A minimum investment threshold of Afl. 500,000 applies.
The policy has been deliberately designed to be robust and transparent. Rather than individual properties, clearly defined areas have been designated. The regime operates on an “all‑in or all‑out” basis. If, upon review, the applicable conditions are not met, the exemptions will lapse with retroactive effect.
3. Tax advice on investing in Aruba
If you have any questions regarding these fiscal incentive measures in Aruba, or regarding the tax treatment of investments and activities in Aruba, please feel free to contact us at info@rootz.tax.
January 2026