Aruba: Living There - Tax Issues

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Living There

Residents of Aruba are taxed on worldwide earnings. The taxable income of resident individuals is gross income from all sources less deductions and allowances (some of which are enumerated below).

Deductions

• Social security contributions
• Child allowance: AWG750 (US$417) for each child
• Disabled child allowance: AWG1,200 (US$667)
• Child allowance for each child over 16 years of age and a full-time student in Aruba: AWG1,200 (US$667)
• Child allowance for each child over 16 years of age and studying abroad: AWG3,800 (US$2,111)
• Old age allowance for a married taxpayer over 60 years of age: AWG6,746 (US$3,748)

Personal Expense Allowances

• Pension premiums, annuities, and any periodic payments
• Mortgage interests
• Interest on personal loans: up to AWG5,000 (US$2,778)
• Premiums for life, annuity, and pension insurance: 5% of taxable income with a maximum of AWG1,000 (US$556)

Expenses for the financial support of close family members, illness, disability, the birth of children or the death of the taxpayer, his spouse, or child, and educational expenses are all deductible to the extent that the aggregate expenses exceed 5% of the taxpayer’s gross income less personal allowances. The percentage limit is reduced to 4% for taxpayers with three to four children and further reduced to 3% for taxpayers with six or more children.

Aruba - more data and information

• Lawyers (attorneys) with property law practices in Aruba

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