vacation rental income

Owning a vacation rental property in Aruba can be a rewarding investment, but many non-resident owners are unaware that they may still be liable for taxes in Aruba, even if they already pay taxes in their country of residence. Aruba’s tax system requires anyone earning local income from a property located on the island, to comply with Aruba’s tax laws.

If you earn rental income as an individual, you are liable for personal income tax. This applies when the property is rented out. 

If a foreign LLC/Corporation is earning a rental income from a property located in Aruba, the foreign company is liable for taxes in Aruba and is a foreign taxpayer for the Aruba’s profit tax law. 

All property owners (resident or non-resident) must pay annual property tax based on the value of the real estate. 

Vacation rentals are subject to Aruba’s tourist levy law, which is charged per stay. This applies whether you rent privately, through Airbnb, or via a property manager. 

Vacation rentals are subject to Aruba’s lodging taxes law, which is charged per accommodation per night. This applies whether you rent privately, through Airbnb, or via a property manager. 

Even if you already pay taxes in your country of residency, Aruba still requires compliance for income generated with local property. Failing to meet these obligations can lead to penalties, interest rates, and complications when selling or transferring the property.

Book a tax consultation to understand your Aruba tax obligations and ensure your vacation rental income is fully compliant.