The complete guide to buying
property in Aruba as a foreigner

Step 1 — Find and Offer: Once you identify a property, make a written offer. When accepted, a preliminary Sale/Purchase Agreement (voorlopige koopovereenkomst) is prepared with all agreed terms: purchase price, conditions, and completion date. Both parties sign this document, which commits the seller to proceed.

Step 2 — 10% Deposit: Upon signing, transfer 10% of the purchase price to the notary's client escrow account. Required at this stage: valid passport, completed personal data form (the notary provides this), and proof of transfer. Your real estate agent can recommend notaries — you as buyer make the final choice.

Step 3 — Notary Due Diligence (6–8 weeks): The notary requests the official claims list from the tax office, searches the Kadaster for any mortgages, liens, or garnishments, verifies the seller is the sole legal owner (and investigates any divorce, bankruptcy, or inheritance complications), and requests the property's leggerwaarde (government-assessed value) to calculate transfer tax.

Steps 4 & 5 — Sign, Register, Done: You attend the notary's office where the full deed of transfer (akte van levering) is read aloud, signed by both parties, and countersigned by the notary. The full remaining balance must have been cleared before this appointment. The notary then submits the deed to Departamento di Impuesto, pays your transfer tax, and registers the new ownership at the Kadaster. You are the legal owner of record.

How the rate works — worked example: You buy a property for AWG 500,000 (~USD 278,000). Transfer tax = 3% × AWG 250,000 (AWG 7,500) + 6% × AWG 250,000 (AWG 15,000) = AWG 22,500 total (~USD 12,500). The notary collects this from you at closing and pays it directly to Departamento di Impuesto.

The leggerwaarde trap buyers miss: Aruba's tax office maintains its own assessed value (leggerwaarde) for every property. If the leggerwaarde is higher than the price you agreed to pay, transfer tax is calculated on the leggerwaarde — not your purchase price. This catches buyers who negotiate below-market deals. Ask the notary to request the current leggerwaarde in the first week of the process so there are no surprises at closing.

Full closing cost breakdown: Transfer tax (3%/6%) + notary transfer deed fee (~1%) + notary mortgage deed (~1% if financing) + bank closing fee (1.5% of loan, min USD 500 if mortgaging) = approximately 7–10% total. Annual ongoing costs are modest: 0.4% land tax per year (with the first ~AWG 60,000 of value exempt for primary residences) plus an annual erfpachtscanon if your property is on leasehold land.

When you view a villa in Palm Beach or a condo in Malmok, there is a very high probability it sits on erfpacht — government-owned leasehold land. This does not make it a worse investment. Tens of thousands of non-residents have bought leasehold properties in Aruba and continue doing so precisely because those are the best locations. But it does mean understanding the annual erfpachtscanon fee and what happens at the 60-year renewal.

Practically speaking, leasehold ownership in Aruba gives you all the same rights as freehold: you hold legal title to the property built on the land, you can take out a mortgage, sell at any price you agree, rent it on Airbnb, and leave it to your heirs. The difference is you pay an annual government land fee (erfpachtscanon) set by the Directorate of Land Administration, and at the 60-year mark the lease renews automatically — but the government can adjust the fee to reflect current land values.

When buying on leasehold land, always ask the notary three specific questions before signing: (1) What is the current annual erfpachtscanon amount? (2) How many years remain in the current 60-year lease term? (3) What are the renewal conditions? This information must be fully disclosed in the deed and sale agreement. Freehold properties are generally more expensive than comparable leasehold properties, reflecting the premium of absolute land ownership.

The six currently licensed civil law notaries in Aruba are: Theodore R. Johnson (johnsonnotary.com, Oranjestad — specialises in real estate, corporate law, condominium divisions and auctions); Ramón Yarzagaray (notarisaruba.com, L.G. Smith Blvd 12 — specialises in property law, business, and auctions); Chamila A. Tromp / NewLeaf Notary (newleafaruba.com, J.E.I. Boulevard 22 — specialises in real estate development, condominiums, and HOAs); M.J.C. Tromp (arubanotary.com, Santa Cruz); H. Rodriguez-Taekema; and M. Marugg-Helmeyer.

Beyond drafting the deed, the notary is your legal safeguard: they verify the property at the Kadaster matches the deed description, confirm the seller is the sole legal owner (or that all co-owners have consented), check for outstanding mortgages or government tax claims, investigate whether a divorce, bankruptcy, or inheritance gives any third party rights over the property, identify both buyer and seller as required by the AML/CFT State Ordinance, and calculate the exact transfer tax to be paid.

When choosing a notary, note that some offices specialise heavily in residential transactions while others focus on commercial real estate, condominium division, or corporate matters. Ask your agent for a recommendation, then contact two or three offices to compare fee quotes and estimated turnaround times. All fees should be confirmed in writing before you engage. If you need a mortgage deed as well, the same notary typically handles both for a combined fee.

Documents banks typically require: Valid passport, 3 months' bank statements from your home bank, 2 years' income proof (pay slips or tax returns for self-employed), employer reference letter, bank reference letters, property appraisal report, copy of the sale agreement, and details of any existing loans or liabilities. Requirements vary between local banks — always compare at least two or three institutions and get fee quotes in writing.

Real-money example: On a USD 300,000 property, a foreign buyer can borrow a maximum of 65% = USD 195,000. You must bring the remaining 35% = USD 105,000 in cash. Add closing costs of approximately 8% (USD 24,000) = roughly USD 129,000 total upfront cash needed. Monthly payments on USD 195,000 at 5.5% over 15 years would be approximately USD 1,595/month.

Why Aruba is a strong investment anyway: Aruba has zero capital gains tax for individuals — if you sell the property for a profit, you keep every florin. There is also no inheritance or gift tax, making it straightforward to pass property to heirs. Annual land tax is just 0.4% per year with the first portion of value exempt. These factors compare very favourably to most Caribbean and European jurisdictions for foreign investors.

Aruba has seen a surge in condominium development since the early 2000s, particularly along Palm Beach and in Noord. A condominium complex is created when a developer has a notary draw up a Deed of Division (splitsingsakte) that divides the building into individually titled apartment rights. Each unit then has its own entry in the Kadaster land registry, its own mortgage capacity, and its own transfer process — just like a house.

Every condominium must have a Homeowners' Association (Vereniging van Eigenaars — VVE). The VVE is governed by a set of condominium regulations (splitsingsreglement) that are part of the original deed of division and are therefore legally binding on all current and future owners. Before buying, always request and read the full condominium regulations and ask for the last 2 years of VVE meeting minutes, the annual maintenance budget, and the reserve fund balance. Monthly or annual VVE contributions vary widely between developments.

An important rule for condo purchases: the full purchase price must be deposited and cleared before the deed of transfer signing appointment. This is stricter than some buyers expect — there is no "pay at completion" arrangement in Aruba. The notary will confirm the exact transfer amount including all taxes and fees in advance so you can ensure funds are in place. For new-build condominiums being purchased off-plan, the notary also drafts the construction agreement (aannemingsovereenkomst) and oversees the staged payment schedule.

As a non-resident property owner in Aruba, your automatic entitlement is 180 days per year on the island — no tourist visa, no residency permit needed, no questions asked. This makes Aruba ideal for buyers who want a Caribbean base for the winter months or extended holidays without committing to full relocation. You can split that 180 days across multiple trips in a calendar year.

If you want to stay longer than 180 days per year or establish Aruba as your primary residence, you must apply through DIMAS (Directie Integratie Management en Admissiebeleid — Aruba's immigration authority). The most relevant permit for property-owning foreign nationals is the financially self-sufficient residence permit (renteniersvergunning). To qualify, you must prove a guaranteed annual income from foreign sources of at least AWG 50,000 (~USD 27,800) per year, or demonstrate capital/assets of at least AWG 100,000 (~USD 55,600). Income must come from an authorised commercial bank. The permit is issued for one year at a time and is renewable. Paid employment on Aruba is not permitted under this visa class.

For those interested in permanent residency: after 5 consecutive years of legally residing in Aruba and demonstrating a good knowledge of Dutch, you can apply for naturalisation as an Aruban citizen and thereby a citizen of the Kingdom of the Netherlands. Note that Aruba has no inheritance tax, so property can be passed to heirs without a tax burden — a significant advantage for long-term estate planning from any country.

One-time closing costs at purchase: Transfer tax (3% up to AWG 250,000, 6% above); notary transfer deed fee (~1% of purchase price); notary mortgage deed fee (~1% of loan amount, if you are financing); bank closing fee (1.5% of loan amount, minimum USD 500, if mortgaging); agent commission if applicable (typically paid by seller in Aruba). On a AWG 500,000 purchase with 35% down, total closing costs come to approximately AWG 38,000–45,000 (USD 21,000–25,000).

Annual ongoing ownership costs: Land tax at 0.4% of assessed property value per year (the first ~AWG 60,000 of value is exempt for primary residences); annual erfpachtscanon lease fee if on leasehold land (amount varies by area and is set by the government); HOA/condo community fees for apartments (varies widely — can be AWG 3,000–12,000/year for pool, security, garden, and maintenance); property and contents insurance (essential — budget AWG 3,000–8,000/year depending on property size and location).

The maintenance reality most buyers miss: Aruba's climate — constant heat, salt air from the ocean, and fluctuating electricity supply — significantly reduces the lifespan of equipment. Air conditioning units typically need replacement every 5–10 years. Refrigerators, washing machines, and other appliances follow similar timelines. Garden maintenance is year-round because plants grow continuously. Factor in a maintenance reserve of at least 1–2% of the property value per year for responsible ownership. For non-resident owners, a property management company (fees typically 15–25% of rental income or a flat monthly rate) is often worthwhile to protect and monetise the investment.

Under Aruba's AML/CFT State Ordinance (Landsverordening ter voorkoming van witwassen en terrorismefinanciering), civil law notaries are classified as Designated Non-Financial Businesses and Professions (DNFBPs). This means they are legally required to identify and verify both the buyer and seller, understand the nature and purpose of the transaction, and report any transaction they consider unusual to the Financial Intelligence Unit of Aruba (MOT — Meldpunt Ongebruikelijke Transacties). This is required regardless of the buyer's nationality, wealth, or status.

Practical document checklist for foreign buyers: Valid passport (certified copy); recent utility bill or bank statement as proof of address; 3–6 months of bank statements from your primary account showing sufficient funds; documentation explaining the source of your funds (salary, business income, inheritance, property sale proceeds, investment returns — with supporting evidence); if purchasing through a company, corporate documentation including beneficial ownership information. The notary will provide their specific forms and requirements when you engage them.

Large cash transactions: Cash payments of USD 14,000 or more in a single transaction must be reported by the notary to the FIU. Wire transfers of USD 278,000 or more also carry reporting obligations. These are automatic regulatory requirements — not discretionary. The best approach is to use standard bank wire transfers and ensure your bank in your home country can provide documentation confirming the transfer origin. Having all documentation prepared at the start of the process, rather than scrambling to gather it at the last minute, is the single most effective way to avoid delays at closing.

The investment case: Aruba combines Caribbean lifestyle with genuine Dutch legal stability. As a constituent country of the Kingdom of the Netherlands, its property law is rooted in the Dutch Civil Code — a mature, well-tested system that gives buyers real protection. The island has no capital gains tax for individuals, no inheritance tax, one of the lowest annual land tax rates in the region (0.4%), and an economy driven by tourism with over 2 million visitor arrivals per year sustaining rental demand.

Where to buy: Palm Beach (the main hotel strip — high rental demand, mostly leasehold land, condos and villas); Eagle Beach (quieter, wider beach, increasingly popular for high-end buyers); Malmok (upscale residential, snorkelling coast, leasehold land, popular with expats); Tierra del Sol (golf course community, northwest tip, leasehold, good long-term rental market); Oranjestad (capital city — commercial investment, short-term rental to business travellers, improving infrastructure); San Nicolas (emerging cultural quarter, affordable entry point, Baby Beach proximity, longer value horizon). Paradera and Santa Cruz offer more affordable inland residential properties for buyers focused on longer-term appreciation over rental yield.

Rental income realities: Aruba's tourism season runs year-round (the island sits outside the hurricane belt — a critical advantage over most Caribbean destinations). Short-term vacation rentals through platforms like Airbnb and Vrbo can generate substantial income from a well-positioned property, particularly on or near Palm Beach and Eagle Beach. However, rental permits are required for short-term letting — confirm the current permit requirements with your agent and the Aruban tourism authority (ATA) before purchasing with rental income as the primary investment rationale. Long-term residential rental demand from expats working in hospitality, oil, and government sectors provides an alternative stable income stream.