FAQ

• Can foreigners buy property in Aruba?
  Yes. Non-residents, including U.S. and European citizens, can buy property in Aruba without restrictions. You do not need residency to own real estate.

• What types of property ownership exist in Aruba?
  • Freehold Land: You own the land and the property outright.

  • Lease Land: The government leases the land (usually for 60 years), and you pay an annual fee. Leasehold is common in Aruba.

• Do I need residency to purchase real estate?
  No. Residency is not required. However, if you plan to live in Aruba year-round, you may want to apply for residency status.

• Can I finance a property purchase in Aruba?
  Yes. Local banks offer mortgages to non-residents, but requirements vary. You may need a larger down payment (often 40–60%) compared to local buyers. Some buyers choose to finance in their home country instead.

• What are property taxes in Aruba?
  • Annual property tax is 0.4% of the property’s value above AWG 250,000 (approx. USD $140,000).

  • Properties below this threshold are exempt.

• Are there restrictions on renting out property?
  No restrictions on short-term or long-term rentals. Many foreign buyers purchase condos or villas to rent as vacation properties. However, condo associations may have their own rental rules.

• What are typical closing costs when buying property?
  Expect 7–8% of the purchase price, covering:

  • Transfer tax

  • Notary fees

  • Administrative fees

• Is buying property in Aruba a good investment?
  Yes. Aruba’s stable government, growing tourism industry, and high demand for vacation rentals make it an attractive investment location. Rental income can be significant, especially near popular beaches. Also safe due to being outside of the hurricane belt. 

• Can I build my own home in Aruba?
  Yes. You can purchase land and build, but you must follow local zoning laws and obtain building permits. Many developers also sell pre-construction or custom-built homes.

• How long does the buying process take?
  On average, 6–12 weeks from offer acceptance to closing, depending on financing and compliance.

• Do I need to be in Aruba to complete the purchase?
  Not necessarily. You can give Power of Attorney to your notary or representative to handle the transaction if you cannot be present.

• Fast Facts About Aruba?
  • Location: Southern Caribbean, about 15 miles north of Venezuela

  • Size: 19 miles long, 6 miles wide (approx. 70 square miles)

  • Population: ~110,000 people

  • Capital: Oranjestad

  • Language: Dutch (official), Papiamento (native). English and Spanish widely spoken

  • Currency: Aruban Florin (AWG), but U.S. dollars are accepted

  • Government: Part of the Kingdom of the Netherlands; parliamentary democracy

  • Climate: Year-round sunshine, average 82°F (28°C), very little rainfall

  • Hurricane Zone: Outside the hurricane belt 

  • Tourism: Over 2 million visitors per year, mostly from the U.S. and Europe

  • Air Travel: Direct flights from major U.S., Canadian, and European cities

  • Economy: Tourism-driven, with oil refining, aloe, and offshore banking also contributing

  • Beaches: Famous for white sand and turquoise waters — Eagle Beach is often ranked among the world’s best

  • Time Zone: Atlantic Standard Time (AST), same as Eastern Time but no daylight savings

  • Real Estate: Foreigners can buy property freely (freehold or leasehold land)

  • Safety: Considered one of the safest islands in the Caribbean

• What is the best ownership structure when buying property in Aruba — personal name or company?
  🏝 Holding Property in Aruba: Personal Name vs. Company

  ✅ Buying in Your Personal Name

  Pros:

  • Simpler and faster process.

  • Lower ongoing costs (no need to maintain a company).

  • Easier for financing with local banks.

  • Straightforward if property is for personal use or occasional rental.

  Cons:

  • Rental income is taxable in Aruba (progressive rates).

  • Liability is personal — if there’s a lawsuit (e.g., rental guest injury), you are directly exposed.

  • Harder to separate personal vs. investment property for tax planning.

  ---

  ✅ Buying Through a Company (Local NV or Foreign Corporation)

  Pros:

  • Can provide liability protection — the company, not you personally, owns the property.

  • Useful if you own multiple properties or operate rentals as a business.

  • Possible tax advantages, depending on your home country’s treaties with Aruba.

  • Easier succession planning (transfer shares instead of property title).

  Cons:

  • Higher setup and annual maintenance costs (legal, accounting, registration).

  • More complex — need local legal/tax advice.

  • Some banks may be more cautious about lending to a corporate entity.

  ---

  ⭐ General Rule of Thumb:

  • Personal Name → Best for a vacation home or single rental property.

  • Company → Best for multiple properties, long-term rental business, or if you want liability/tax structuring advantages.

• Do I need an attorney to purchase property in Aruba?
  No, an attorney is not required. Real estate transactions are overseen by a civil law notary, who prepares and records the deed. However, many buyers hire an attorney or work with a real estate agent for added peace of mind and extra due diligence.

• Do I get a title when I buy real estate in Aruba?
  Yes. A civil law notary issues a title deed, which is registered with the Land Registry as your legal proof of ownership.

• Do I need to pay income tax in Aruba?
  Yes, if you live in Aruba full-time, you’re taxed on worldwide income. Non-residents only pay tax on Aruban income, such as rental earnings from property. Personal vacation use is not taxed.

• How much do utilities cost in Aruba?
  Typical monthly utilities for a 2–3 bedroom home are around AWG 400–1,000 (~USD $225–560), including electricity, water, and internet. Air conditioning is the largest factor in electricity costs.

• Do I have to pay capital gains tax when selling property in Aruba?
  Generally, no. Private property sales are not subject to capital gains tax unless you sell frequently as a business or earn rental income from the property.