Aruba

Tax advantages

• No capital gains tax, no inheritance or gift tax, and no wealth tax.
• Corporate tax rate is a flat 25%, with exemptions for certain offshore activities.
• No withholding tax on dividends, interest, or royalties paid to non-residents.
• Tax incentives for qualifying investments under the Aruba Investment Incentive Ordinance.
• No VAT; instead, a low turnover tax (BBO) of 1.5% applies to most goods and services.

Tax disadvantages

• Corporate income tax of 25% applies to locally sourced income, with limited deductions.
• Aruba participates in the OECD Common Reporting Standard (CRS) since 2017, requiring automatic exchange of financial account information.
• Tax Information Exchange Agreements (TIEAs) with over 30 jurisdictions limit banking secrecy for tax purposes.

Residency advantages

• No minimum stay requirement for residency permits (e.g., investor permit).
• Path to permanent residency after five years, with possibility of citizenship after ten years (with language and integration requirements).
• Residency permits can be obtained through investment in real estate (minimum $250,000) or business.
• No worldwide income tax for residents; only Aruba-source income is taxed.
• High standard of living with excellent healthcare and education options.

Residency disadvantages

• Residency permits are not automatically granted; approval is discretionary and can take several months.
• Citizenship requires renunciation of previous nationality (Aruba does not allow dual citizenship).
• Cost of living is high, especially for imported goods and housing.
• Limited job market outside tourism and financial services.

Living quality

Life in Aruba offers a blend of Caribbean tranquility and modern amenities, with year-round sunshine and cooling trade winds. The island boasts excellent healthcare facilities, international schools, and a low crime rate compared to regional peers. Infrastructure is well-developed, with reliable utilities and high-speed internet, though the cost of living is elevated due to imports. The multicultural society and vibrant cultural scene enhance the appeal for expatriates.

Best for

• Aruba is ideal for high-net-worth individuals seeking a tax-efficient Caribbean base with a stable US-dollar economy and no capital gains or inheritance taxes. It suits those who prioritize luxury lifestyle, privacy, and asset protection through trusts and foundations, while maintaining proximity to the US and Europe. The residency-by-investment program appeals to investors who can meet the real estate or business investment thresholds.