Aruba: Country and Foreign Investment
Foreign Investment Regime
The Aruba Foreign Investment Agency ("AFIA") helps investors who are considering locating in Aruba by providing know how regarding the business possibilities in the Island and by introducing the foreign investor to Governmental and private organizations that have information that can contribute to the investor's success. Aruba has a series of fiscal incentives and corporate legislation in place specifically for the purpose of attracting economic activity by non residents.
To encourage investments in specific industries the government has introduced a number of tax incentives on a selective basis.
A non-traditional manufacturing industry, with an initial investment of at least Af100,000 is eligible for the following incentives:
- reduction of corporate tax rate to 0%;
- exemption from income tax on dividends paid out to shareholders, provided the dividends are paid within two years after the year the profit has been made;
- exemption from import duties on building supplies for premises;
- exemption from import duties on packing materials, machinery and equipment, raw materials, semimanufactured products and components, to be used in the production process;
- import duty of 2% for environmentally friendly products;
- exemption from real estate tax;
- temporary investment deduction for 2011 and 2012 tax years, providing for a profit deduction of 6% of the total investments related to local expenditures in the business assets.
The incentives are granted for a maximum period of ten fiscal years.
There are similar incentives for the development of fallow land and for hotel construction, in each case subject to a minimum investment of Af 1m.