Reduction of land tax for 28 thousand people

Dit item is gearchiveerd op 09-02-2019.

ORANJESTAD - With the introduction of the fiscal reform, the rate for land tax is also adjusted.

Ground tax is a tax paid by home and or property owners.. The changes will be based on the value of the property; the lower the property value, the lower the rate, the higher the property value the higher the rate. A new and higher rate is also introduced, for foreigners not residing in Aruba and companies owning commercial properties. This will make the ground tax rates more reasonable. A rate reduction for a single home owner while increasing the rate for those owning more properties or high valued properties.

The old rate was 0.4% for everybody, residents or non-residents owning condos in Aruba.

The rate changes include a 0% tax rate for property valued up to Awg. 120.000,00

Those owning a property valued between Awg. 120.000,00 and Awg. 250.000,00 will notice an reduction of 50%, from 0,4% to 0,2%.

Those owning a property valued between Awg. 250.000,00 and Awg. 500.000,00 will receive a reduction of 25% from 0,4% to 0,3%

Property owners with a home valued between Awg. 500.000,00 and Awg. 750.000,00 will see no changes in their ground tax rates, however since the Awg. 60.000,00 current reduction will no longer be applied, it will cause an increase of Awg. 240,00 per year.

Homeowners with a home valued above Awg. 750.000,00 will see an increase in their ground tax with 50%, from 0,4% to 0,6% This group will on the other hand see a bigger reduction of their loan tax as stated previously. Meanwhile, those not residing in Aruba, but have properties like condominiums, will also notice an increased rate to 0,6%. These companies will be compensated with a reduced rate on their dividend tax.

The impact of the reform will be vast; 12.000  homeowners will no longer pay any ground taxes, 16.000 homeowners will see a reduction on their rate, 1.800 non-residents will see an increase and 2.100 homeowners with property valued over Awg. 500.000,00 will see an increase while enjoying a reduction of their wage taxes. About 1.800 companies will notice an increase but will also be compensated with the reduction of their dividend tax.  

New rate ground tax