Can I purchase a property in Aruba?

As a non-resident looking to purchase property in Aruba, there are several important factors to consider. Here's what you need to know:

1. No Special Restrictions for Non-Residents

  • Equal Rights: Non-residents have the same rights as residents when it comes to purchasing property in Aruba. There are no special permits or permissions required.

2. Types of Land

  • Freehold Land (Eigendom Terrein): This is privately owned land where you hold the deed outright.
  • Leased Land (Erfpacht): This is government-owned land leased to individuals, typically for a period of 60 years, with options to renew. You have full ownership rights to the property built on this land, and you can sell, mortgage, or transfer it just like freehold property.

3. Property Purchase Costs

  • Transfer Tax: For properties valued under AWG 250,000 (approximately USD 142,860), the transfer tax is 3% of the property’s value. For properties over this amount, the tax increases to 6%.
  • Notary Fees: By law, a notary must be involved in the transaction. Notary fees are typically 2% of the purchase price, split between the transfer deed and mortgage deed. The notary also ensures that the property is free from legal encumbrances.

4. Financing Options

  • Mortgages: Banks in Aruba offer mortgage loans to non-residents. Requirements may include valid identification, proof of income, bank references, and possibly a minimum down payment. Banks typically charge a closing fee (around 1% of the loan amount), separate from notary fees.

5. Legal Due Diligence

  • Notary Role: The notary handles the legal aspects of the purchase, including verifying ownership, ensuring the property is free of liens, and drafting the necessary documents.
  • Title Search: A title search is conducted to confirm that the seller is the legitimate owner and that there are no outstanding legal issues tied to the property.

6. Timeframe for Closing

  • Closing Process: The closing process typically takes two to three months, depending on the complexity of the transaction.

7. Taxes and Fees

  • Property Tax: Property owners in Aruba are subject to an annual property tax (land tax). The rate depends on the value of the property.
  • Utility Fees: Owners are responsible for utilities such as water, electricity, and waste disposal.

8. Property Management

  • Managing Your Property: If you don’t plan to live in Aruba full-time, you might want to hire a property management company to handle maintenance, rentals, and other tasks in your absence.

9. Renting Your Property

  • Rental Income: Non-residents can rent out their properties. Aruba has a thriving vacation rental market, especially through platforms like Airbnb. Rental income is subject to taxes, so it's important to understand the local tax obligations.

10. Residency Considerations

  • Visas: Purchasing property in Aruba does not automatically grant you residency. If you wish to stay for extended periods, you may need to apply for a long-stay visa or residency permit.

11. Currency and Payment

  • Currency: Transactions are typically conducted in Aruban florins (AWG) or U.S. dollars (USD), both of which are widely accepted on the island.

By understanding these key points, you can navigate the process of buying property in Aruba as a non-resident with confidence and clarity.


Need more information or perhaps you are thinking of retiring in Aruba? Send us an e-mail and let us assist you with finding the perfect property to fit your budget and requirements: sales@arubahappyhomes.com