New Tax Incentives for Redevelopment in Oranjestad and San Nicolas

Published on December 15, 2025

Beneficial tax policy to promote economic development in Oranjestad and San Nicolas

On December 12, 2025, the ‘Benificial Tax Policy to promote the Economic Development of Oranjestad and San Nicolas‘ of December 5, 2025, was published by the Minister of Finance, Economic Affairs and Primary Sector in the National Gazette (“Landscourant”) of Aruba.

In this beneficial policy, in anticipation of future legislation, incentives concerning profit tax, dividend tax, transfer tax, and tax on business turnover (BBO/BAVP/BAZV), are introduced to encourage local and foreign investors to redevelop outdated real estate in Oranjestad and San Nicolas.

In short, the policy introduces a temporary exemption – under conditions – for a period of 10 years for the levying of profit tax and dividend tax and for a period of 2 years for the levying of transfer tax and BBO/BAVP/BAZV.

These exemptions only apply to income, benefits and transactions in this period, that are directly related to the redevelopment of real estate in designated areas in Oranjestad and San Nicolas. Taxpayers for profit tax, who cannot make use of the exemption, will be allowed to discretionary depreciation of the redevelopment costs. To be eligible for these temporary exemptions and facilities, certain conditions apply.

This beneficiary policy resolution will enter into force on January 1, 2026.

For more information or any questions you may have concerning the above or whether the beneficial policy can be applied in your situation, please do not hesitate to contact us.