ORANJESTAD (AAN) – The Minister of Finance, Economic Affairs, and Primary Sector, Mr. Geoffrey Wever, has announced the introduction of a new fiscal incentive framework aimed at stimulating economic development in the downtown areas of Oranjestad and San Nicolas. The new measures officially came into effect on January 1, 2026.
According to the minister, both Oranjestad and San Nicolas have significant untapped potential, with many vacant or abandoned buildings currently in poor condition. The newly introduced tax incentives are designed to encourage property owners to renovate these buildings or sell them to investors willing to carry out renovations.
The temporary fiscal incentives apply exclusively to the historic city centers of Oranjestad and San Nicolas and include, among other benefits, exemptions from profit tax and dividend tax for a period of ten years. In addition, there are temporary exemptions from transfer tax, business turnover tax (BBO), and AZV destination levies related to the renovation and sale of qualifying buildings. To be eligible, investments must be made within the next two years.
These incentives significantly reduce initial investment costs, improve the financial feasibility of renovation projects, and lower the overall tax burden, making redevelopment in these city centers more attractive. The program applies to investments of at least Afl. 500,000.
For investors who are unable to fully benefit from the tax exemption regime, the government has also introduced the option of accelerated depreciation for development and renovation expenses, allowing broader participation in the revitalization efforts.
Through this new fiscal framework, the AVP-FUTURO government aims to create a clear and transparent investment climate for Aruba’s historic centers. By fostering collaboration between the public and private sectors, the initiative seeks to revitalize Oranjestad and San Nicolas, enabling the redevelopment of buildings for housing, restaurants, cafés, offices, and retail spaces.
The policy aligns with the AVP-FUTURO Government Program 2025–2028 and follows recommendations from the Economic Recovery Commission 2023, a commission established and led by Minister Wever, which included representatives from KVK, ATIA, AHATA, Freezone, DEZHI, as well as legal, fiscal, and accounting professionals.
“I am extremely pleased that these fiscal incentives are now finalized and in effect as of January 1, 2026,” Minister Wever stated. “I hope the private sector will make good use of these measures so that together we can revitalize downtown Oranjestad and San Nicolas—one of the key priorities of the AVP-FUTURO Cabinet and a commitment we made to the people of Aruba.”
Photo Credits : https://diario.aw/categories/noticia/general/introduccion-di-beneficio-fiscal-pa-stimula-desaroyo-economico-di-centro-di-oranjestad-y-san-nicolas
Discussion about this post