Yes, foreigners can buy property in Aruba, and the rules are the same ones Aruban citizens follow. There are no nationality requirements, no special permits, and no caps on foreign ownership. Aruba operates under Dutch civil law, so every transaction runs through a government-appointed notary who verifies title and executes the transfer, which gives international buyers a fairly strong layer of protection.1Aruba Bank. Platinum Mortgage for Non-Resident
Buying doesn’t give you the right to live there full-time, and there are ongoing taxes and US reporting obligations that catch American buyers off guard. The rest of this article walks through what you’re actually buying, what the process looks like, and what it costs upfront and every year after.
What Kind of Ownership You’re Buying
Aruban listings come in three legal forms, and the difference matters before you make an offer.
- Freehold (Eigendom): Full ownership of the land and the buildings on it. Unrestricted rights to sell, mortgage, or develop.
- Long lease (Erfpacht): The government owns the land and leases it to you for 60 years, with automatic renewal for another 60-year term. You own the structures and can sell or mortgage the property, but you pay an annual ground rent (canon) to the government, and the renewal may come with an adjusted fee.2Government of Aruba. Cost of Doing Business
- Apartment rights (Appartementsrecht): Used for condominiums. You own your unit plus a proportional share of the common areas.
Erfpacht is common in Aruba and shouldn’t put you off. In practice, it functions much like freehold during its term. The difference is the annual ground rent and the fact that you don’t own the underlying land. Comparable erfpacht properties typically list at a lower price than freehold ones.
How the Purchase Works
Every real estate transaction goes through a civil law notary (notaris), a neutral government-appointed official who verifies documents, confirms title, and registers the transfer. The notary works for neither side, so hiring your own attorney for due diligence is worth considering, especially if you’re buying from abroad.3Global Property Guide. Buying Property in Aruba as a Foreigner
Once you and the seller agree on price and terms, both sides sign a purchase agreement (koopovereenkomst). You then place a security deposit of up to 10 percent of the purchase price into the notary’s escrow account. Aruban law caps that deposit at 10 percent for residential purchases, which protects buyers from being asked for more upfront.
The notary runs a title search to confirm the seller owns the property free of liens, encumbrances, or disputes, and checks zoning compliance. From signed purchase agreement to final transfer typically takes six to eight weeks. A complex deal or one involving mortgage financing can run longer.
Closing happens when both parties sign the deed of transfer (akte van levering) before the notary. Transfer tax, notary fees, and any remaining balance are settled that day. The notary then registers the deed with Aruba’s Public Records Office (Kadaster en Openbare Registers), and that registration is the moment ownership legally changes hands.
What Closing Actually Costs
Budget for these buyer-side costs on top of the purchase price:
- Transfer tax (overdrachtsbelasting): 3 percent on properties valued at AWG 250,000 (roughly USD 140,000) or less, and 6 percent on properties above that threshold. Paid by the buyer at closing.4Doing Business Dutch Caribbean. Tax
- Notary fees: Statutory charges for preparing and executing the deeds, typically 1 to 4 percent of the purchase price. Higher-value properties tend toward the lower end.3Global Property Guide. Buying Property in Aruba as a Foreigner
- Registration fees: A smaller charge for recording the deed at the Public Records Office.
- Agent commission: Usually 2 to 3 percent, and typically paid by the seller.
The Aruban florin is pegged to the US dollar at 1.79 AWG per USD, so budgeting in dollars is straightforward. On a USD 400,000 property, total buyer-side closing costs generally land between USD 28,000 and USD 40,000.
Taxes You’ll Owe Every Year
Aruba charges an annual property tax (grondbelasting) based on the assessed value of your real estate. Residents pay 0.4 percent and get an exemption on the first AWG 120,000 of assessed value. Non-residents pay 0.6 percent, and the exemption structure differs.4Doing Business Dutch Caribbean. Tax If you’re comparing Aruba to other Caribbean destinations, run the numbers at the non-resident rate.
Renting the property out adds more filings. Rental income is taxable in Aruba, and you’ll file a yearly Aruban return. Operating costs (utilities, repairs, insurance, local taxes, management fees) are deductible; capital improvements like a new pool or extra room are not. Short-term vacation rentals also carry a tourist tax of 12.5 percent on the nightly rate plus a special tourist levy of USD 3 per occupied room per night. Long-term rentals are subject to the turnover tax (BBO) at 7 percent, unless the tenant uses the property as a primary residence.
Financing If You’re Not Paying Cash
Several Aruban banks offer mortgages to non-residents, but the terms are tighter than what residents get. Non-resident loan terms cap at around 15 years, versus 25 for residents. The maximum loan-to-value is roughly 60 percent, so plan on a down payment of at least 40 percent.1Aruba Bank. Platinum Mortgage for Non-Resident
To apply you’ll typically need a valid passport, proof of income (pay stubs, employment letter, or financial statements if self-employed), a utility bill or address registration from your home country, an appraisal from an Aruba-licensed appraiser no older than six months, and documentation of your source of wealth. Opening a local bank account is part of the process, since it’s where mortgage payments, deposits, and transaction funds move through.
Owning Property Doesn’t Give You Residency
This is the boundary that surprises buyers most often. Buying property in Aruba does not grant residency rights. As a property owner you can stay up to 180 days per calendar year, with a maximum of 180 consecutive days per trip. Both arrival and departure days count. The count resets each January 1.
Living in Aruba beyond that limit requires a separate residency permit through the island’s immigration authorities. Owning property doesn’t fast-track that application.
Inheritance Exposure for Non-Resident Owners
When a non-resident property owner in Aruba dies, the real estate doesn’t simply pass tax-free to heirs. Aruba imposes a special property transfer tax of 8 percent on the assessed value, levied on heirs inheriting from a non-resident.5Global Property Guide. Inheritance Tax and Inheritance Law in Aruba
On a high-value property that number gets meaningful, and families often haven’t planned for it. If you’re making a substantial purchase, talk to a legal advisor who understands both Aruban law and the inheritance rules of your home country. Holding property through certain legal structures can reduce or defer the tax, but what works depends on your nationality and personal circumstances.
US Reporting Obligations for American Buyers
American citizens and residents who buy in Aruba take on several US filings that exist independently of anything Aruba requires.
The Aruban bank account you’ll open to manage the property triggers a Report of Foreign Bank and Financial Accounts (FBAR, FinCEN Form 114) if your combined foreign account balances exceed $10,000 at any point during the year. Even briefly crossing the threshold triggers the requirement.6FinCEN.gov. Report Foreign Bank and Financial Accounts
Separately, the Foreign Account Tax Compliance Act may require IRS Form 8938 if your foreign financial assets exceed certain thresholds. For US-based single filers, the trigger is $50,000 on the last day of the tax year or $75,000 at any point during the year. Joint filers have double those thresholds, and taxpayers living abroad get significantly higher ones ($200,000 year-end or $300,000 at any point for single filers).7IRS. Summary of FATCA Reporting for US Taxpayers Directly held foreign real estate is not itself a specified foreign financial asset for Form 8938, but the Aruban bank account you use to run the property is.
Rental income from an Aruban property gets reported on your US return using Schedule E (Form 1040), the same way domestic rental income does. A foreign tax credit for income taxes paid to Aruba on the same revenue helps avoid double taxation. Standard property deductions (depreciation, repairs, insurance, management fees) apply to foreign rentals too.
Between Aruban filings and US reporting, working with a tax professional familiar with cross-border property is worth the cost. FBAR penalties alone can be severe, and foreign account compliance has become a consistent IRS enforcement priority.