Where can I get some fast facts on Aruba?
The best places are Lonely Planet: http://www.lonelyplanet.com/worldguide/aruba
The CIA U.S. Government site: https://www.cia.gov/library/publications/the-world-factbook/geos/aa.html
The Aruba Tourism Office: http://www.aruba.com
We highly recommend the excellent Global Property Guide website: http://www.globalpropertyguide.com/Caribbean/Aruba
Frequently Asked Questions:Can a non-Aruba citizen own real estate in Aruba?
Yes. There are no limitations.
Should I retain an attorney to purchase real estate in Aruba?
You may, but this is not mandatory as all real estate purchases go through a Government Licensed Notaris which guaranties the transaction.
Does your company recommend any specific attorney?
We cannot suggest a specific attorney, but you can find many of them on Aruba Yellow Pages:
When I purchase real estate, should I put it in my own name or start a company?
This is something you may want to discuss with an Attorney. It might depend upon your legal and tax situation, but typically people purchase real estate under their own name in Aruba.
When I purchase real estate, do I get a title or some other legal proof of ownership?
Yes. the Notaris will deliver you a "Levering" which is your title to the real estate property. The document will be in Dutch, but the Notaris will explain it to you in English at the signature time.
Are there real estate transfer taxes I need to consider in my purchase?
Yes, the transfer tax is 3% of the price if lower than $141,000, then it is 6%. There are also between 0.8 and 3% misc. fees, depending on the price of your property.
Are there property taxes in the Aruba?
Yes, there are property taxes. Owners have to pay real estate property tax each year. The Tax Department appraises the value of your property (your house and land) deducts $33,707.00 (fixed deductible) from the appraised value, and taxes 0 .4 % on the balance.
House appraised by Tax Department at: US $150,000
Deductible: US $33,707
Total US $116,293
0.4% of Total: US $465.17 (per year)
Do I need to pay income taxes in Aruba?
Typically, no, unless you become a resident.
Are there Capital Gain Taxes on Properties in Aruba?
No, and that makes a huge difference with other Caribbean Islands like Dominican Rep. (30%), or Martinique (6.45%)
Can I insure my house in Aruba?
There are many types of property insurance. However typical comprehensive property insurance that covers explosion, earthquake, flooding, fire, riot/malicious damage, foreign object, etc. costs yearly 0.37% of the reconstruction value.
How much do I have to calculate for water, electricity etc.?
Water: WEB NV is the only water provider on the Island. All the industrial and potable water produced by WEB NV, the 2nd world's largest desalination plant, is from the seawater. The quality of Aruba's drinking water is highly regarded and very safe to drink direct from the faucet. The average consumption per month according to WEB NV is $82.00. Houses with extensive landscaping could expect water bills around $170. With an average swimming pool of 30 m3, the monthly consumption of water in dollars is estimated at $250.00.
Electricity: WEB NV also produces electricity, which is distributed by ELMAR NV. Power is supplied to all homes at 60-Hertz frequency and at 110 volts, just like in the United States. Power outages are very rare, unlike on other Caribbean islands. The average consumption of power per month is $130.00. For a house with 3 A/C units the average is around $250.00.
What about telephone quality and costs on the island?
Telecommunication services are provided by SETAR NV, a government owned company. The telecommunication infrastructure is advanced and sophisticated. SETAR provides all telecommunication services on an exclusive basis, except for cellular services, which are also provided by Aruba Digicel as well. The average expenditure per month per household on telecommunication services is $90.00. If you make extensive use of international line and/or internet services you could expect expenditure to reach around $250.00 per month.
What about an internet connection?
SETAR provides fast internet services through a DSL (ASDL) account. Unlimited use is at $55 per month.
Can I watch my usual TV ?
You have two choices in Aruba: either subscribe to Direct TV Aruba and get the same channels than in the USA plus some European ones, or choose the Cable TV solution, if your house is equipped to receive the cable, and get similar channels.
MPG Real Estate & Marketing would like to give you a few suggestions to make your purchase an easy one:
- Sign a preliminary Sale/Purchase Agreement with the owner of the property which contains the basic terms and conditions. The Seller is committed to sell the property to you after signing this agreement.
- Payment of a security deposit of 10 percent of the selling price agreed to in the Sale/Purchase Agreement would be required in most cases.
In order to process the Sale/Purchase Agreement the notary requires the following documents:
- Copy of a valid identification card of the Buyer.
- Complete information of sale form and personal data form.
- Copy of the security deposit paid
There are many condo projects currently under development in Aruba and MPG Real Estate & Marketing will be happy to assist you select the right one. Our condo specialist will be happy to help you navigate the market by discussing what amenities are important to you and important considerations such as maintenance fees and developer information.
Taxes (Real Estate/Property)
The only annual property tax you have to pay is called land tax and it is usually based on the selling price. The first USD 34,000.00 is free of tax and on the remainder you pay USD 4.00 per USD 1,000.00 value. For example annual land tax on a USD 250,000.00 property would be USD 864.00
When purchasing property the following costs are attributable to the Buyer: 1. Transfer tax of between 3-6 percent depending on the value of the property, this is a single payment effective since January 1, 2007 2. Notary fees for the transfer deed are 1 percent of the selling price 3. Notary fees for the mortgage deed (if applicable) are 1 percent of the selling price.
Closing costs are generally between 4-8 percent of the selling price.
If you would like further information on buying a home please feel free to contact Muna +297 593 4647 at MPG Real Estate & Marketing. I will be happy to answer all of your questions.