Aruba: Country and Foreign Investment
Free Trade Zones
This page was last updated on 20 Feb 2019.
Free Zone Aruba (FZA), within the capital city of Oranjestad, was created to boost exports and increase foreign exchange earnings. Originally, only companies involved in ‘commercial’ or ‘industrial’ activities (which includes servicing, repairing and maintaining goods with a foreign destination) could be licensed to operate within the Free Zone.
Under the State Ordinance Free Zones 2000, service-orientated companies (excluding financial services) are also able to operate from the Free Zone. Mechanical engineers, software developers, business consultants and many other service businesses can benefit from the incentives offered by the FZA. Drop shipments (also a type of service activity), whereby the goods do not physically have to pass through the Zone, are also considered an export activity and attract a very reasonable 2% profit tax.
Free Zone companies receive substantial financial incentives (see Offshore Legal and Tax Regimes) including exemption from import duties and low rates of taxation. They also benefit from a simplified administrative regime, exemption from the Business Licence Act and refunds for Free Zone cargo.
A third site at Bushiri has also been added to the Free Zone complex. The Bushiri site covers an area of 9.2 hectares and is just one mile from Oranjestad. The Aruba Free Zone has carried out an intensive marketing campaign geared at attracting more South American firms to invest in the new free zone of Aruba.