In both Oranjestad and San Nicolas, long-term vacant buildings have become a growing problem. These vacant properties contribute to a rundown appearance of the main streets and hinder economic and social vitality. Many owners, often without mortgage burdens, demand exorbitant rental prices, causing potential tenants to back out. This raises the question of whether a policy measure, such as a vacancy tax, could improve the situation.

A vacancy tax is a tax on vacant properties that encourages owners to rent or otherwise use their buildings. This tool has been successful worldwide in cities such as Vancouver, San Francisco, and Paris, where it helps reduce vacancies and breathe new life into urban areas. In Aruba, a similar tax could motivate owners to adopt more realistic rental prices, allowing their properties to be utilized and enhancing the appearance of the main streets.

The problem of vacancies in Aruba goes beyond economic consequences; it also has a psychological impact. The deserted look of the main streets discourages visitors and tourists, which in turn creates a negative spiral for surrounding shops and businesses. A tax on vacant buildings could not only financially incentivize owners to make their properties available but also contribute to the revitalization of the dynamics and attractiveness of city centers.

Critics might argue that a vacancy tax would place an additional burden on owners, especially in an economy already facing challenges. However, a well-designed tax policy could create incentives rather than punishments. For example, owners who rent their properties at reasonable prices or contribute to community projects could receive tax benefits. This creates a win-win situation: more rental income for owners, reduced costs through tax benefits, and livelier main streets.

Ultimately, implementing a vacancy tax is a strategic choice that goes beyond economic gain. It is about restructuring Aruba’s urban landscape, creating opportunities for entrepreneurs, and restoring the social and economic life of the main streets. For owners, it’s simple: some income from a rented property is always better than losing money to a vacancy tax.

With the right approach and broad cooperation between the government, owners, and entrepreneurs, a vacancy tax could be a powerful tool to combat the decay of Aruba’s main streets and revitalize the cities. It is time to take action and give these abandoned buildings a new purpose.