Non-residents can buy a house in Aruba!!

divi-tree-greenVery often we hear from our clients that they were told that non-residents cannot buy land or a home in Aruba. We can tell you that these stories are not true. All non-residents can buy land or a house in Aruba going through the same process as the Aruban residents. They can buy a home on property land as well as on lease land.

Lease land

Besides property land you can buy a house which is built on lease land. This land is owned by the Land of Aruba and the lease is for 60 years.

A yearly fee is paid for these lease rights. After the 60 years, the lease period will automatically be extended with another 60 years. The only thing that might happen when the lease period is extended is an increase in the yearly fee.

Most of the houses situated in Arashi, Malmok, Tierra del Sol, Topaz, Safir, Esmeralda, Ruby, Opal, Salinja Serca and Palm Beach are built on lease land. Many non-residents have bought there and will keep buying in those areas although the homes are built on lease land! The reason they keep buying houses in those areas is because of their locations. These areas are close to the spas, golf course, tennis courts and shopping malls. Another huge advantage is the distance to the ocean.

Condo projects

Currently there are several condo projects in development on Aruba. For more information about these projects, you can contact one of our agents and we will be more than happy to assist you.

Taxes

The most attractive fact when you are thinking of buying a house in Aruba is that the costs related to the ownership of a house or land are very low.

The only yearly tax you have to pay is called land tax. This land tax is usually based on the selling price. The first USD 34.000 is free of tax. On average you pay USD 4 per USD 1.000.

For example: Selling price of the house is USD 234.000. The land tax is calculated as follows:

USD 234.000 - USD 34.000 = USD 200.000

USD 200.000 / 1.000 = USD 200 USD

200* 4 = USD 800 per year for taxes

Closing Costs When you are considering buying a house in Aruba, you have to realize that there are additional costs involved besides the selling price. These additional costs, the closing costs, are approximately 5 to 8 percent depending on the selling price. The closing costs are calculated as follows:

 

Transfertax (one time tax) 3% when selling price is < Afl. 250.000 
6% when selling price is > Afl. 250.000
Notary fees transfer deed  1% of selling price
Notary fees mortgage deed   1% of selling price 

 

 

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