Who can buy property in Aruba?

Foreigners are welcome to purchase property in Aruba, with the government actively encouraging investment from international buyers. There are no restrictions on foreigners acquiring real estate, and the purchasing process is the same as for Aruban citizens. Foreign buyers can choose between freehold property, which offers full ownership, or leasehold land owned by the government.

Do the research

Investing in Aruba real estate is highly appealing due to the island's strong tourism-driven economy, stable political environment, and consistent demand for vacation properties. As a premier destination in the Caribbean, Aruba attracts millions of international visitors annually, creating opportunities for rental income, particularly in short-term vacation rentals. The island’s real estate market offers diverse investment options, from beachfront villas and luxury condos to commercial properties catering to tourism and hospitality.

Aruba benefits from a favorable tax environment and a legal system that supports foreign property ownership, making transactions secure and straightforward for international investors. Its year-round warm climate, pristine beaches, and reputation as a safe and welcoming destination enhance the desirability of properties, contributing to long-term value appreciation. Additionally, the island's well-developed infrastructure and strong ties to global markets make it an attractive location for both personal and investment purposes.

Below are some sought-after destinations for real estate investment in Aruba:

• Oranjestad - As the capital of Aruba, Oranjestad is a vibrant hub of culture, commerce, and tourism. The city offers a mix of modern condominiums, townhouses, and luxury properties. Its charming streets, historic architecture, and proximity to stunning beaches make it a top choice for investors seeking properties with high rental demand.
• Noord - Located on the northern side of the island, Noord is known for its upscale neighborhoods, luxury villas, and proximity to popular beaches like Palm Beach and Eagle Beach. This area is ideal for those looking for a mix of tranquility and access to lively tourist hotspots, offering significant potential for vacation rentals.
• Palm Beach - Palm Beach is a prime location for beachfront condos, resorts, and investment properties. With its vibrant nightlife, shopping centers, and water sports, it attracts a steady flow of tourists, making it a highly lucrative area for real estate investors interested in short-term rentals.
• San Nicolas - Known as the cultural capital of Aruba, San Nicolas has seen growing interest from buyers looking for unique, affordable properties. The area’s artistic vibe, festivals, and quieter beaches like Baby Beach offer a different investment opportunity for those seeking long-term value.
• Paradera - Paradera is perfect for those interested in rural and residential properties with a more laid-back lifestyle. Located inland, this area offers affordable family homes and spacious properties, appealing to retirees and individuals looking for tranquil living away from the bustling tourist areas.
• Malmok - Malmok is a high-end residential area known for its exclusive waterfront homes and proximity to pristine snorkeling spots. It’s a popular choice among luxury homebuyers and those seeking prestigious vacation properties.

Where to find properties online:

• https://arubalistings.com/
• https://century21aruba.com/
• https://www.coldwellbanker.aw/

Financing

Foreigners can obtain mortgage loans in Aruba, but the process may vary depending on the lender and the applicant's residency status. Local banks and financial institutions in Aruba often offer mortgage options to international buyers, but these typically come with stricter requirements compared to loans for residents. Foreign buyers are generally required to provide a larger down payment and demonstrate financial stability through proof of income, assets, and creditworthiness. Additionally, interest rates for non-residents may be higher, and the maximum loan term could be shorter. Some international buyers may also explore financing through banks in their home country or seek cross-border mortgage options if available. It is advisable to consult with local banks or financial advisors in Aruba to understand specific terms and conditions.

Due Diligence and Sales Contract 

Due diligence is an essential step in securing a property transaction. It involves a comprehensive investigation to confirm that the property is free of legal encumbrances, such as liens or unresolved disputes, and that the seller holds clear ownership and has the authority to complete the sale. This process typically includes verifying property titles, reviewing any zoning restrictions or land-use regulations, and ensuring compliance with local laws.

In Aruba, transactions are overseen by government-appointed notaries who play a crucial role in preparing and verifying legal documents. Buyers are generally required to pay a 10% deposit when the purchase agreement is signed. This agreement outlines all terms of the sale and is followed by a final deed that completes the transaction. The involvement of the notary ensures the process aligns with Aruban legal standards and that the property is properly registered. Collaborating with local legal professionals can help streamline this process and ensure a secure investment

Property Buying Costs and Taxes in Aruba

Footnotes to Transaction Costs Table

Transfer Tax (Overdrachtsbelasting)
The transfer tax is charged at a flat rate: 3% for property values up to AWG250,000 (US$138,889), and 6% for property values exceeding AWG250,000 (US$138,889).

The round trip transaction costs include all costs of buying and then re-selling a property - lawyers' fees, notaries' fees, registration fees, taxes, agents' fees, etc.

Notary Costs:

Notary fees on the transfer deed are around 1% - 4% of the selling price.

• Notary fees transfer deed: 1%-2% of value
• Notary fees mortgage deed: 1%-2% of value

Agent's Commission:

Real estate agents usually charge 2% - 3% of the purchase price for their services, usually paid by the seller.