On 23 September 2026, the Aruba Department of Impuesto officially published the 2026 ground lease (erfpacht) collection notices, marking the commencement of the annual payment obligation for all leaseholders of government-owned land. Ground lease constitutes a fundamental component of Aruba’s property tax framework, levied on the right to use and develop state land under long-term lease agreements governed by the Ground Lease Ordinance (Landsverordening Erfpacht) and the applicable tax decrees. The assessment for each leasehold is calculated based on the government’s official valuation of the land (grondwaarde) multiplied by the statutory lease percentage (erfpachtpercentage), which varies depending on the designated land use category—residential, commercial, industrial, or tourism. The release of these notices follows a strict administrative timeline designed to provide taxpayers with a minimum of 60 days before the final payment deadline, ensuring adequate time for financial planning and compliance. The Department has reiterated that payments can be processed at its main office in Oranjestad during regular service hours, as well as through the secure online payment portal using the unique reference number printed on each notice.
Key Takeaways
- Assessment Methodology and Valuation Updates: The 2026 ground lease assessments reflect the most recent government land valuations, which are updated periodically to align with market conditions. Leaseholders should note that the valuation date for the 2026 tax year is 1 January 2025, and any changes in land use or rezoning after that date will not affect the current assessment but will be considered for the 2027 cycle. The lease percentage remains unchanged from prior years at 1% for residential, 1.5% for commercial, and 2% for tourism-related properties, unless a specific concession agreement stipulates otherwise. Taxpayers are encouraged to verify the land area and classification stated on their notice against their lease contract.
- Payment Procedures, Deadlines, and Digital Options: The Department of Impuesto has set the final payment deadline for the 2026 ground lease at 30 November 2026. Payments received after this date will incur a penalty interest of 1% per month or part thereof on the outstanding principal, in accordance with the National Ordinance on Tax Collection (Landsverordening Invordering Belasting). To facilitate compliance, the Department accepts payments via cash, debit card, and credit card at its counter, as well as electronic bank transfers to the Tax Department’s account at the Central Bank of Aruba, referencing the 10-digit payment code. The online portal, accessible through the official Impuesto.aw website, allows for immediate confirmation and download of a digital receipt. Leaseholders with multiple properties can consolidate payments using a single reference per property.
- Objection Rights, Installment Arrangements, and Enforcement Risks: Leaseholders who disagree with the assessed land value have the right to file a written objection (bezwaarschrift) within six weeks of the notice date, addressed to the Director of the Department of Impuesto. The objection must include substantiated grounds, such as a recent independent appraisal by a sworn appraiser recognized by the Aruba Chamber of Commerce. While an objection suspends enforcement actions, it does not suspend the accrual of penalty interest if the assessment is ultimately upheld. For taxpayers facing temporary liquidity constraints, the Department may grant an installment payment plan (betalingsregeling) upon formal request, subject to a down payment of at least 25% of the total due and a maximum duration of six months. Persistent non-payment without an approved arrangement exposes the leasehold to a statutory tax lien, which ranks prior to most private encumbrances, and may ultimately lead to a forced sale of the leasehold rights to recover the tax debt.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement