Changes to Real Estate Transfer Tax

Tax Newsflash May 2019

A recent policy implemented by the Minister of Finance, Economic Affairs and Culture of Aruba aims to reduce accumulation of real estate transfer tax for consecutive transfers of real estate within a specific time period.

This policy also provides relief in situations where a transfer of real estate is not carried through for specific reasons.

This policy issue relates to the following:


Transfer within 6 months

Transfer tax due in an acquisition of real estate within six months of a previous acquisition of the same real estate by another party will be based on the applicable transfer price less the transfer price of the previous transfer.

In this scenario, transfer tax will thus only be payable on the surplus charged on the sale of the real estate involved.


Refund of real estate transfer tax

A facility is in place that provides for situations where a transfer of real estate should be reversed for legal reasons.

Upon request, the Aruba tax authorities will then grant a refund of transfer tax if the conditions prior to the transfer are restored as a result of:

  • the fulfillment of a resolutive condition;
  • nullity or nullification;
  • termination for non-performance of the obligation.

Refund requests should be submitted within three months of the end of the calendar year in which the entitlement to the refund arose.

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