Buying Property in Aruba as a Foreigner
Property

Can Foreigners Buy Property in Aruba? A Practical Guide

Aruba's sunny beaches, safe neighborhoods, and stable economy make it a magnet for international buyers. Whether for vacation, retirement, or investment — the answer is yes: Aruba allows non-residents to purchase, own, and sell real estate under the same legal framework as locals.

This guide explains what foreign buyers need to know: legal requirements, residency rules, financing, taxes, and rental regulations.

1. Ownership Rights for Foreigners

Foreign buyers enjoy the same rights as Aruban citizens:

  • Full ownership: You can buy, sell, mortgage, and rent properties.
  • Safe and regulated process: Transactions are handled by a civil-law notary who ensures clear titles.
  • No special permits required: Buying property does not require citizenship, residency, or local approval.

Aruba recognizes two main types of property ownership:

Freehold (Eigendom)

  • You own the land and property outright.
  • No ongoing land fees.
  • Typically limited to prime areas, often more expensive.

Leasehold (Erfpacht)

  • Land is government-owned and leased, usually for 60 years.
  • Annual lease fees apply, varying by location and size.
  • You still own structures on the land and can sell, mortgage, or rent them.

2. Residency and Stays for Property Owners

Owning property does not grant automatic residency.

  • Non-residents can stay on Aruba up to 180 days per year without a visa.
  • Those wishing to retire or live longer on the island must apply for a residence permit.
  • Property ownership can strengthen your application for long-term stays, but it is not a substitute for official immigration approval.

3. Required Documents for Foreign Buyers

Buying property as a foreigner is straightforward if you have the following:

  • Valid passport or government-issued ID
  • Proof of income and financial stability
  • Bank reference letters (from home country)
  • Purchase agreement and deposit
  • If financing: proof of assets, credit report, and appraisals

A civil-law notary will handle all legal documentation and ensure the property has a clean title.

4. Financing Options for Non-Residents

Foreign buyers often need larger down payments than locals, typically 35–40%, and may face higher interest rates. Banks commonly request:

  • Proof of income and employment
  • Credit history from home country
  • Bank references
  • Appraisal by a licensed Aruban appraiser

Some buyers explore financing options abroad or cross-border loans. Local banks offering mortgages for non-residents include:

Aruba Bank – Platinum Mortgage

  • Tailored for foreign buyers
  • Annuity-based repayment
  • Down payment: 35–40%

RBC Royal Bank – Non-Resident

  • Up to ~65% financing
  • Terms up to 15 years
  • Includes renovation financing

5. Tax Implications for Foreign Owners

Owning property in Aruba comes with predictable and transparent taxes:

  • Transfer Tax: 3% for properties below AWG 250,000 (~US$138,000), 6% for higher values
  • Annual Property Tax (Land Tax): Based on the assessed value
  • Leasehold Fee (Erfpacht): Annual fee for government-owned land
  • Rental Income Tax: Applicable if you rent out your property

Understanding these obligations early ensures smooth ownership and compliance.

6. Renting Out Property as a Non-Resident

Foreign owners can rent properties, including short-term vacation rentals. Key points:

  • Vacation rental licenses may be required for certain zones
  • Local regulations and zoning laws must be followed
  • Rental income is taxable under Aruban law
  • Many buyers use property management companies to handle bookings, maintenance, and compliance

7. Can You Buy Through a Company?

Yes — purchasing through a corporate entity is an option. Benefits include:

  • Estate planning and inheritance management
  • Potential tax advantages
  • Flexibility for rental or investment purposes

Corporate purchases involve extra registration and legal steps, so consultation with a local attorney is recommended.

8. Key Takeaways for Foreign Buyers

  • Aruba welcomes international buyers with no ownership restrictions.
  • Both freehold and leasehold options are available, each with pros and cons.
  • Purchasing property does not grant residency, but owners can stay up to 180 days per year.
  • Financing is available for non-residents, but down payments and terms differ from locals.
  • Taxes, fees, and rental rules are transparent and predictable.
  • Working with local real estate professionals — agents, notaries, and mortgage brokers — simplifies the process and reduces risk.

Owning property in Aruba allows foreigners to enjoy tropical living, invest in a stable market, and take advantage of strong vacation rental demand. With proper planning, the process is smooth, safe, and rewarding.

Frequently Asked Questions

Can foreigners buy property in Aruba?

Yes. Aruba allows non-residents to purchase, own, and sell real estate under the same legal framework as locals. No special permits, citizenship, or residency are required to buy.

Does owning property in Aruba give me residency?

No. Owning property does not grant automatic residency. Non-residents can stay up to 180 days per year without a visa. Longer stays require a residence permit; property ownership can strengthen your application.

What is the difference between freehold and leasehold in Aruba?

Freehold (eigendom) means you own the land and property outright with no ongoing land fees. Leasehold (erfpacht) means the land is government-owned and leased, usually for 60 years, with annual lease fees; you still own structures on the land.

Can I get a mortgage in Aruba as a foreigner?

Yes. Banks such as Aruba Bank and RBC Royal Bank offer non-resident mortgages. Foreign buyers typically need 35–40% down payment and must provide proof of income, credit history, and bank references.

Can I rent out my Aruba property as a non-resident?

Yes. Foreign owners can rent properties, including short-term vacation rentals. Vacation rental licenses may be required in certain zones; rental income is taxable under Aruban law.

Can I buy property in Aruba through a company?

Yes. Purchasing through a corporate entity is possible and can help with estate planning, inheritance, and potential tax advantages. Consult a local attorney for registration and legal steps.