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Thread: Resident taxes for US citizen

  1. #1
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    Resident taxes for US citizen

    We are getting close to purchasing a condo in the Eagle Beach area. We are up to date on the buying process’s taxes and fees, mortgage, residency guidelines, etc. Our question is about personal income taxes on our pension and social security income if/when we decide to become residents so we can live in Aruba for more than 6 months at a time. We will not be renting out. We are aware of the current tax brackets in Aruba. We would like some feedback from a US citizen who is living there as a resident and receiving pension/social security income form the US. Are there general deductions to lower taxable income on our taxes paid to Aruba? Can you claim a foreign tax credit for taxes paid to Aruba on pension/social security income on your US taxes? We will consult a tax adviser on our upcoming trip, but for now we are just looking for some general info so we can start wrapping our head around our options. Recommendations on a tax adviser in Aruba are greatly appreciated also. Thanks!
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  2. #2
    Aruba since 1979
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    welcome to the aruba.com community forum!
    it is nice to read that you will be "living the aruba dream"

    I hope that you get your tax answers.
    I am very interested in reading the replies.
    Quote Originally Posted by 84turboz View Post
    We are getting close to purchasing a condo in the Eagle Beach area. We are up to date on the buying process’s taxes and fees, mortgage, residency guidelines, etc. Our question is about personal income taxes on our pension and social security income if/when we decide to become residents so we can live in Aruba for more than 6 months at a time. We will not be renting out. We are aware of the current tax brackets in Aruba. We would like some feedback from a US citizen who is living there as a resident and receiving pension/social security income form the US. Are there general deductions to lower taxable income on our taxes paid to Aruba? Can you claim a foreign tax credit for taxes paid to Aruba on pension/social security income on your US taxes? We will consult a tax adviser on our upcoming trip, but for now we are just looking for some general info so we can start wrapping our head around our options. Recommendations on a tax adviser in Aruba are greatly appreciated also. Thanks!

  3. #3
    Super Moderator WaltVB's Avatar
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    A couple of old posts that may cover your questions:

    US citizens / Aruba residents - taxation
    Retirement in Aruba

  4. #4
    Senior Member robin's Avatar
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    Congrats on buying a condo and welcome to the forum. We have a condo at Oceania, but are not at the point of being more than 3 months. It is great to look ahead if you plan on becoming a resident, however; it seems like Aruba is changing their taxes laws, such as making all non residents or non-citizens (not sure which one) pay one foxed land tax(property tax) rate verses residents who will pay a graduated rate. If you choose not to become a resident, you have to leave the island at 180 days, but you can come back the next day. I have heard of people flying to Miami for a day or two and doing some shopping and then coming back to Aruba or flying to Curacao for a day. You'll probably have to look at your tax liability to the US also and how the two counties work the taxes-is the income taxable in the US because it is being earned in the US? Is it taxable in Aruba also? Do you plan on having your money deposited in Aruba? Will they change you a out of country transfer fee or will it be easier to have you money direct deposited into a US account and draw cash from an ATM to pay your bills in Aruba?




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  5. #5
    Member phrogg108's Avatar
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    Do any of you know if these taxes and rules apply to someone who lives in Aruba part time but works for a company that is based in the US? For example, my job is pretty easily done remotely, so I am having pipe dreams of someday finding a place in Aruba that we could rent part of the year and occupy part of the year, but I would still be working and working for the company at which I am currently employed here in the US. I have not found a ton of info on this, but was hesitant to ask for fear of sounding like a moron. Also, not sure if this thread is the right place for the question since this thread is related to more retirement-based taxes and income. If that is the case, I can start a new thread with my question...
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  6. #6
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    DIMAS needs to make their website informative and up to date.

    One of my neighbors were visited one day last week from ICE.
    They are from Toronto and own a home about 8 doors down from me.
    Per the info I was given, they had overstayed their welcome by 10 days.
    They were given an ultimatum, packed up and drove north.

    I know here in the USA the Canadians can stay 180 days per calendar year.
    I think that is USA rules and Canada rules as well.

    I think folks should NOT rely on social media for questions of this magnitude.
    Very important stuff and if Aruba Dimas is not forthcoming on their website we need to advise others to contact Dimas by phone, in person or email.

    The original question was about the taxing of income for a USA citizen who is also an Aruba resident.

    When Paul and I were finalizing our retirement plan back 2007 , we did speak with an Aruban accountant and what we learned kept us from pursuing any dream of living in Aruba. The tax burden for us would have been intolerable for us. I do not remember the particulars, but in 2007 and 2008 the tax consequences for us was the only deal breaker.

  7. #7
    Senior Member schexc's Avatar
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    When we purchased our condo, our CPA attempted to do some significant research into the tax implications, being a foreign country. He said he had a degree of difficulty in his findings, but stated that as a tourist there was some reciprocity between the two countries with respect to taxes. I don’t recall the particulars, but he said don’t apply for residency. So as Andres advised, don’t rely on social media for this information, seek out the powers at be.




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  8. #8
    Aruba since 1979
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    Once I am home I will break apart this thread and separate the amount of days a non resident can stay per calendar year.

    Too hard to do on iPhone with my arthritic thumbs.

  9. #9
    Aruba since 1979
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    the topic is Resident Taxes

  10. #10
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    For US retirees wanting to live in Aruba more than 180 days/year, the tax picture doesn't look good. For official information, the Arubian tax office on the web is at: http://www.impuesto.aw but it helps to understand Dutch. The Dutch word for "tax" is "belasting".

    I'm not an accountant, so take the following with a grain of salt:

    My understanding from doing some research in the past and consulting with the Oranjestad branch of a worldwide accounting firm is that AUA will, if you are a resident, tax you on your WORLDWIDE income. That includes: 401Ks, IRAs (not sure about Roth, though), and military retirement and possibly US Social Security. Their tax brackets charge very high rates at even moderate incomes; my understanding that AUA has the 2nd highest marginal tax rate in the world (only trailing Norway), with 52% marginal rate for an income of just under 142K Florins (that's about US $81,000) ... I am not sure if this is individual or a married couple rate, though.

    The key thing is if you have high/moderately high income, then I've been told not to stay in AUA more than 180 days per year. So ... how does the government know how long you've stayed? They can look at a few things, such as where you live, social networks, and where you work. The immigration (at the airport) and tax office are coordinating more and more over time.

    Hope this helps.

    Further information would be appreciated; I could not find the most recent tax "tables" that broke down the categories of filers.
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