Buying Process of purchasing Real Estate in Aruba

Owning property in Aruba is easier than you think!

A few facts about purchasing property in Aruba

You do not have to be a permanent resident of the island to buy a home or plot of land — contrary to what you may have heard.

You can buy a home either on property land or lease land. The buying process is the same for non-residents as it is for local residents. There are no restrictions on foreign buyers acquiring real estate in Aruba. When you become a non-resident homeowner, you’ll have the right to live on the island for 180 days per year. No questions asked!

Property Land in Aruba

When discussing property land in Aruba, this type of land is owned outright by the owner of the deed. On property land you pay a yearly ‘land tax’ to the local tax office.

Land Tax in Aruba

The most atractive fact when considering the purchase of a home in Aruba — the costs related to the
ownership of a house or land are very affordable.

The only yearly tax you have to pay is called land tax. This land tax is usually based on the selling price and is paid per year.

Various examples:
• 0.0% for properAes with a value of AWG 120,000 or less (Only applicable for locals).
• 0.2% for properAes with a value between AWG 120,000 and AWG 250,000 (Only applicable for locals).
• 0.3% for properAes with a value between AWG 250,000 and AWG 500,000 (Only applicable for locals).
• 0.4% for properAes with a value between AWG 500,000 and AWG 750,000 (Only applicable for locals).
• 0.6% for properAes with a value of AWG 750,000 for locals & all non-residents.

Lease Land

Besides property land, you can buy properties built on lease land. This land is owned by the Land of Aruba (Government) and the duration of a lease is 60 years.

A yearly fee is paid for these lease rights. After 60 years, you will have to request to extend the lease. After approval, the lease duration is another 60 years. The only thing that might happen when the lease period is extended is an increase in the yearly fee and minimal adjustments to the leasehold conditions.

Most of the houses situated in Arashi, Malmok, Tierra del Sol, Topaz, Safir, Esmeralda, Ruby, Opal, Salinja Cerca, and Palm Beach are built on lease lands. Many non-residents have bought properties in these areas and will continue to do so as these neighborhoods are the most popular on the island!

The reason why they keep buying properties in those areas is because of the location. These areas are close to spas, golf courses, tennis courts, and shopping malls. Another considerable advantage is the short distance to the ocean.

Mortgage Calculator

You have to be a minimum of 18 years old, permanently employed (salaried/self-employed), have a good credit history and your maximum loan term and age must not exceed the government’s age of reArement to be eligible.
For a non-resident mortgage loan, the bank can finance up to a maximum of 65% of the purchase price or construction costs of the property (whichever is lower). The amount of the loan depends on your age, income, and fixed expenses.
The maximum loan tenor is 15 years, depending on your age (in the case of land purchase, the leading loan tenor is 10 years).
The interest rate is variable and is determined based on the market situation at the beginning of the loan.
The repayments are amortized monthly payments of principal and interest.
1.5% closing fee on the loan amount with a minimum of USD 500 and the notary cost to establish the mortgage will be applicable. All other costs depend if you are buying, building on renovaAng your home.

Relocation to Aruba

Aruba does not have an inheritance/giB tax. A resident of Aruba can donate his/her fortune to his/her heirs without paying taxes on Aruba. However, a transfer of real estate as an inheritance is subject to transfer tax (exemp2ons
may apply for direct heirs).
Aruba does not tax the interest income earned from bank savings. (Interest on savings accounts are not taxed. Bond interest is taxable, though)
When reloca2ng to Aruba, a possible exemp2on on import du2es applies.
Aruba does not have an asset tax.
There is no capital gains tax in Aruba. This means that if you make profit by selling stocks or a house, you do not need to pay taxes (not applicable for companies registered in Aruba).