Relocation intelligence

🇦🇼 Moving to Aruba: tax, residency and cost of living

Progressive income tax from 0 to 52 percent with a high tax-free threshold (an AWG 30,000 personal allowance plus a 0 percent first band), its own social contributions (AOV/AWW and AZV, together a 6.6 percent employee share up to AWG 85,000), a 22 percent profit tax, a 7 percent turnover tax and no capital gains or wealth tax.

Thinking of moving to Aruba? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
52%
Corporate tax
22%
Capital gains
0%
Wealth tax
No
Inheritance tax
Yes
Cost of living index
76
Safety
8/10
Internet quality
7/10
Visa-free destinations
185
Foreigners can own property
Yes
Residency in
6 months
Citizenship in
5 years

Taxes

Income tax is progressive with bands of 0, 21, 42 and 52 percent on table income. Employee premiums AOV/AWW (5 percent) and AZV (1.6 percent) are deducted from gross salary first, both up to a premium income of AWG 85,000, then the AWG 30,000 personal allowance. Profit tax is 22 percent and the stacked turnover tax (BBO, BAZV and BAVP) is 7 percent in total. There is no wealth or capital gains tax, but inheritance and gift tax still apply.

Residency and visas

Residency runs through the Admission and Expulsion Ordinance; even Dutch nationals from Europe need admission. Permits exist for work, family reunification, retirees and investors. Naturalisation to Dutch citizenship generally requires five years of legal residence.

Property ownership

Foreigners may buy residential real estate without restriction, both freehold and long-lease land. A transfer tax applies on conveyance.

Cost of living and quality of life

Aruba is sunny, safe and outside the hurricane belt, with universal healthcare through AZV and good internet. Downsides are the high cost of living and the limited scale of a small island.

Passport and mobility

Aruba residents hold Dutch nationality and travel on a Netherlands passport, which in 2026 gives access to 185 destinations without a prior visa. Aruba is not part of the EU or Schengen; admission to the island runs through its own regime.

Why people move to Aruba

  • Generous tax-free threshold

    Thanks to the AWG 30,000 personal allowance on top of the 0 percent first band, roughly the first AWG 64,900 of taxable income stays free of income tax, so average salaries are taxed lightly.

  • No capital gains or wealth tax

    Aruba levies no general capital gains tax on private wealth and no wealth tax, which is attractive for investors and retirees.

Honest trade-offs

  • De kosten van levensonderhoud liggen hoog omdat vrijwel alles wordt geimporteerd; boodschappen, energie en huisvesting zijn duur en gemiddeld circa 8,5 procent hoger dan in de Verenigde Staten.
  • Het toptarief van de inkomstenbelasting bedraagt 52 procent en geldt al vanaf een tabelinkomen boven AWG 135.527.
  • Op vrijwel alle omzet rust een gestapelde omzetheffing (BBO, BAZV en BAVP) van samen 7 procent, wat de consumentenprijzen verder opdrijft.
  • Aruba heft nog steeds successie- en schenkingsrecht, oplopend tot 24 procent voor niet-verwanten.
  • De arbeidsmarkt is klein en beschermd; buitenlanders hebben een verblijfs- en tewerkstellingsvergunning nodig en lokale kandidaten krijgen voorrang.

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Sources

Other destinations

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