Costs of Buying Property in Aruba
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Costs of Buying Property in Aruba (Taxes, Notary & Fees)

If you are planning to buy property in Aruba, understanding the full cost structure is essential. This guide explains closing costs, transfer tax, notary fees, and ongoing annual expenses.

If you are planning to buy property in Aruba, understanding the full cost structure is essential before making an offer. Beyond the purchase price, buyers must account for transfer tax, notary fees, registration costs, and ongoing annual expenses.

This guide explains all costs associated with buying property in Aruba — including closing costs, taxes, mortgage-related fees, and yearly ownership expenses.

How Much Are Closing Costs in Aruba?

In most cases, total closing costs range between 5% and 8% of the purchase price. In transactions involving financing or complex structures, costs may reach slightly higher.

These costs are typically paid by the buyer unless otherwise negotiated.

1. Transfer Tax (Overdrachtsbelasting)

Transfer tax is a one-time government tax paid when ownership is transferred.

Current rates:

  • 3% for properties valued under AWG 250,000
  • 6% for properties valued above AWG 250,000

This tax is calculated based on the purchase price stated in the deed of transfer. Transfer tax is usually the largest portion of closing costs.

2. Notary Fees

In Aruba, only a licensed notary can legally transfer property ownership. Notary involvement is mandatory.

Transfer Deed Fee

Typically ranges between 0.5% and 3% of the purchase price, depending on complexity.

Mortgage Deed Fee (If Financing)

If a mortgage is registered, an additional 0.5% to 2% may apply.

Notary fees often include:

  • Drafting the deed of transfer
  • Registering the deed
  • Due diligence checks
  • Escrow management
  • Administrative and registry costs

3. Registration and Administrative Costs

Registration fees with the public registry are generally included within the notary's invoice but form part of your total closing expenses.

The notary verifies:

  • Legal ownership
  • Existing liens or debts
  • Unpaid property taxes
  • Compliance documentation (KYC)

4. Deposit Requirement

After signing the purchase agreement, buyers are typically required to deposit 10% of the purchase price into the notary's escrow account within approximately 10 business days.

This deposit secures the transaction and is credited toward the final purchase price at closing.

5. Real Estate Agent Commission

Agent commissions in Aruba are generally 2% to 3% of the purchase price.

In most transactions, the seller pays the commission — not the buyer.

Total Estimated Purchase Costs Example

For a property valued at AWG 500,000:

  • Transfer tax (6%): AWG 30,000
  • Notary & registration (approx. 1.5%–3%): AWG 7,500–15,000

Total estimated closing costs: Approximately AWG 37,500–45,000. This equals roughly 7%–9% of the purchase price.

Actual amounts depend on transaction details and financing structure.

Ongoing Costs After Purchase

Owning property in Aruba also involves recurring yearly expenses.

1. Annual Property Tax (Grondbelasting)

Aruba applies annual land tax based on the government-assessed value of the property.

Rates generally range from:

  • 0% on lower-valued properties
  • Up to approximately 0.6% on higher-valued properties

Many mid-range residential properties effectively fall around the 0.2%–0.4% range, depending on assessment.

2. Lease Land Fees (If Applicable)

If the property is built on lease land (long lease / erfpacht):

  • The land remains government-owned.
  • A yearly lease fee (canon) is payable.
  • Lease terms are typically 60 years and renewable.
  • Renewal may involve adjusted lease rates.

Freehold properties do not carry this fee.

3. Mortgage Costs (If Financing)

If you finance the property:

  • Local banks often require higher down payments for non-residents.
  • Mortgage interest rates typically range between 5% and 7%, subject to change.
  • Banks may charge approximately 1% mortgage arrangement fees.
  • Monthly payments include principal and interest.

4. Home Insurance

Property insurance is strongly recommended.

Coverage typically includes:

  • Fire
  • Theft
  • Natural disasters
  • Liability protection

Premiums vary depending on property value, location, and coverage level.

5. Maintenance Costs

Aruba's climate requires regular property maintenance.

Factors affecting maintenance:

  • Salt air exposure near the ocean
  • Strong sun and heat
  • Air-conditioning wear
  • Electrical fluctuations
  • Garden growth year-round

Air conditioners and appliances may have shorter lifespans compared to cooler climates. Budgeting for ongoing maintenance is essential.

6. HOA or Association Fees

If purchasing a condominium or property within a gated community, monthly or yearly HOA fees apply.

Fees may cover:

  • Pool maintenance
  • Landscaping
  • Security
  • Exterior insurance
  • Waste collection
  • Common area utilities

HOA fees vary widely depending on the community and amenities.

How Long Does the Closing Process Take?

From signed purchase agreement to final transfer: approximately 8–12 weeks.

This timeline may vary depending on:

  • Mortgage approval
  • Compliance checks
  • Property type
  • Complexity of transaction

The notary conducts due diligence through the Land Registry and Public Records before finalizing the transfer.

Do Foreign Buyers Pay More?

No.

Residents and non-residents follow the same legal process and pay the same transfer taxes and notary fees. There are no special restrictions or additional purchase taxes for foreign buyers in Aruba.

Final Thoughts

When buying property in Aruba, understanding both the upfront purchase costs and the ongoing ownership expenses is critical for proper financial planning.

Most buyers should budget between 5% and 8% in closing costs, plus annual property tax, maintenance, and any applicable mortgage or association fees.

Proper preparation ensures a smooth and transparent transaction in Aruba's stable real estate market.

Frequently Asked Questions

How much are closing costs when buying property in Aruba?

Total closing costs typically range between 5% and 8% of the purchase price, including transfer tax, notary fees, and registration. With financing or complex structures, costs may be slightly higher.

What is the transfer tax in Aruba?

Transfer tax is 3% for properties under AWG 250,000 and 6% for properties above that. It is calculated on the purchase price in the deed.

Who pays notary fees in Aruba?

Notary fees are typically paid by the buyer unless otherwise negotiated. They usually range from about 0.5% to 3% of the purchase price for the transfer deed, plus additional fees if a mortgage is registered.

Do foreign buyers pay more when buying property in Aruba?

No. Residents and non-residents follow the same legal process and pay the same transfer taxes and notary fees. There are no extra purchase taxes for foreign buyers.

How long does the closing process take in Aruba?

From signed purchase agreement to final transfer, the process typically takes approximately 8–12 weeks, depending on mortgage approval, compliance checks, and transaction complexity.