Tax Incentives for Start-up Companies (Aruba)
Share this article
Share this article
The Minister of Finance and Culture of Aruba has introduced a specific starter scheme to stimulate entrepreneurship and support the growth of start-up companies, effective from January 1, 2026. Through this scheme, the Minister of Finance and Culture seeks to stimulate entrepreneurship and support the growth of start-up companies in promising sectors such as the knowledge economy, agriculture, logistics, the circular economy, creative industries, and niche tourism.
Introduction
This policy, as introduced by the Minister of Finance and Culture of Aruba, targets promising sectors such as the knowledge economy, agriculture, logistics, the circular economy, creative industries, and niche tourism. A first step in this fiscal support is the elimination of tax-related barriers. The incentives are implemented through beneficial policy (in Dutch: ‘begunstigend beleid’), in anticipation of formal legislation.
Conditions
The benefits of this scheme apply solely to companies that are incorporated and established in Aruba on or after January 1, 2026, are subject to profit tax, operate within the abovementioned “promising sectors”,” and whose core revenue-generating activities take place in Aruba.
Tax Benefits
Eligible start-up companies may take advantage of the following incentives:
– an annual exemption from profit tax on taxable profits up to Afl. 50,000;
– an enhanced investment allowance, increased from 10% to 20% for qualifying investments with a minimum value of Afl. 5,000;
– a partial deduction of newly obtained business loans, whereby 50% of the principal amount may be deducted in the year the loan is taken out, subject to a maximum of Afl. 30,000 per year;
– the statutory minimum wage shall apply to shareholder-employees with an ownership interest in the company throughout the start-up period.
Attention points
Access to the regime is subject to stringent conditions, including sufficient economic substance in Aruba, minimum investment thresholds, employment requirements, and robust anti-abuse measures.
This scheme excludes companies operating under the Free Zones regime.
With regards to the duration of this beneficial scheme, the incentives may be applied for the first five financial years following incorporation.
Non-compliance with the applicable conditions may lead to the retroactive withdrawal of the various tax incentives, tax reassessments, and the imposition of penalties.
Keep in touch
Should you have any questions regarding this announcement, please do not hesitate to contact us. Our team would be more than happy to assist you with your questions.
