General Overview.  Aruba started to develop as an offshore jurisdiction from the middle of the 20th century, offering an attractive business environment for conducting manufacturing, trading and distribution businesses, as well as offshore banking activities. A holding or financing company may achieve a tax-exempt status.  Tax exemption may also be granted to investment activities, except those in real estate. Aruba is currently introducing several fiscal reforms and new legislation, in order to be in line with the OECD outlined principles.

Banking Sector. Even though no interests are being levied on deposits in Aruban banks, the banking sector is not very developed there. Firstly, offshore banks are permitted to deal exclusively with non-residents or exempt companies. Secondly, it is believed that the local banking regulation environment should be reviewed and improved. In the last years, however, several small new banking institutions were established in Aruba.  In 2009 a new rule has been introduced, which states that only entities with strong financial records and good reputation may hold the majority of shares in an offshore bank in Aruba.

Aircraft Registration. In the last years the Aruban government has significantly developed aircraft registration segment, which now allows registering commercial and private jets, as well as helicopters. Usually Aruban Exempt Corporations are used for aircraft registration purposes, in such a way achieving a significant tax advantage.