Real Estate in Aruba

Located in the Southern Caribbean, Aruba is a 179 sq km island with some of the best beaches in the world. Aruba, also known as the "One Happy Island," is a constituent country in the Kingdom of Netherlands. This tropical island has ideal conditions for all watersports, various entertainment options, highly developed tourism, and one of the highest living standards in the region.

Introduction to Real Estate in Aruba

With its white sandy beaches and crystal-clear waters, Aruba is a paradise for tourists. However, beyond being a popular vacation destination, it is also an excellent place for foreigners to invest in real estate. The beautiful landscapes, favorable tax laws, and stable economy make Aruba an attractive option for purchasing property. In this handbook, we will explore the benefits of investing in real estate in Aruba, the types of properties available, and the process of purchasing real estate in this Caribbean gem.

Mortgages in Aruba

Most local banks are open to giving mortgages to non-residents. However, each bank has its terms and conditions that need to be met so that you can get a loan with them. Some standard documents asked by local banks in Aruba include proof of income, valid identification, employment letter, etc.

Furthermore, the bank can ask for an appraisal report, a copy of the sales agreement, etc. Their goal here is to evaluate their exposure. If your mortgage gets approved, the bank will typically charge the client a closing fee of 1% of the mortgage. The closing fee comes on top of the other costs mentioned earlier.

Residence and Visitors in Aruba

If you are there with a tourist visa, you can stay in Aruba for as long as three months per year. Visitors from the EU, Canada, USA, Australia, and several South American countries can stay in Aruba for as long as three months per year; they don't need visas.

But if you want to stay longer than that, you need to make inquiries with the Department of Immigration (DIMAS). They have all the information on everything you need to stay in Aruba for more extended periods.

Why Invest in Real Estate in Aruba?

There are numerous reasons why investing in real estate in Aruba is an intelligent decision. Firstly, the island offers a stable economy and political environment, making it a safe investment place. Additionally, Aruba has favorable tax laws, making it an attractive option for foreigners. The island's tourism industry is booming, ensuring a steady rental income stream for property owners. Moreover, the demand for vacation rentals in Aruba is high, allowing investors to generate substantial investment returns.

Exploring the Real Estate Market in Aruba

The real estate market in Aruba is diverse, catering to a wide range of preferences and budgets. From luxurious beachfront villas to cozy condos, there is something for everyone. The island offers a mix of new developments and resale properties. Aruba has it all if you are looking for a primary residence, a vacation home, or an investment property. Working with a reputable real estate agent specializing in the Aruban market is recommended to navigate the options available and find the perfect property for your needs.

Types of Real Estate Available in Aruba

Aruba offers a variety of real estate options to suit different lifestyles and budgets. Beachfront properties are highly coveted, providing breathtaking views and direct access to the turquoise waters. These properties range from spacious villas to luxurious condominiums. If you prefer a more urban setting, properties are available in the capital city of Oranjestad and other towns on the island. These properties offer easy access to shopping centers, restaurants, and entertainment options. Additionally, plots of land are available for those interested in building their dream home in paradise.

The Benefits of Buying Beachfront Real Estate in Aruba

Investing in beachfront real estate in Aruba comes with numerous benefits. Firstly, these properties offer stunning views of the Caribbean Sea and the opportunity to enjoy the island's famous sunsets from your home. Beachfront properties also provide direct access to the beach, allowing you to indulge in water activities such as swimming, snorkeling, and sunbathing whenever desired. Furthermore, beachfront properties appreciate value over time, making them a sound investment. They also have great potential for generating rental income as tourists flock to Aruba for its pristine beaches.

Finding the Right Real Estate Agent in Aruba



When buying real estate in Aruba, working with a reputable and knowledgeable real estate agent is crucial. A good agent will have in-depth knowledge of the local market, be familiar with the legal processes, and have a network of contacts to help you find the perfect property. Look for an agent who is a member of a recognized Aruba real estate association with positive reviews from previous clients. Interview multiple agents, ask for references, and choose someone who understands your requirements and can guide you.

Tips for Buying Real Estate in Aruba

Before purchasing, there are several tips to remember when buying real estate in Aruba. Firstly, thoroughly research the property and its location. Consider factors such as proximity to amenities, accessibility, and growth potential. Conducting a property inspection to identify potential issues or maintenance requirements is also advisable. Additionally, familiarize yourself with the local laws and regulations regarding real estate ownership in Aruba. Finally, clearly understand your budget and financing options to ensure a smooth transaction.

The Process of Purchasing Real Estate in Aruba

First, being a foreign property buyer is treated the same as a domestic property buyer. There are no legal or other restrictions, and foreign buyers, like domestic buyers, can either lease land or freehold property land owned by the Aruba government. If the property has been hired, the owner must pay an annual lease fee for lease rights.

The property buying process is not a complicated one, which in most cases includes these steps:
  • Searching for a suitable property.
  • Finding the right property and making an offer.
  • Signing a purchase agreement and paying a 10% deposit to a Notary.
  • The Notary must contact you within six weeks to sign the deed and complete the payment.
  • Take care of all the taxes.
Regarding fees, know that the Notary fees amount to 2% of the purchase price. The transfer tax can cost as much as 6% of the buying price, whereas the annual property tax is around 0.4%.

The process of purchasing real estate in Aruba involves several steps. Firstly, you must make an offer on the property, which will be presented to the seller through your real estate agent. If the request is accepted, a purchase agreement will be drafted outlining the terms and conditions of the sale. It is recommended to have a local attorney review the contract to ensure compliance with Aruban laws. Once the agreement is signed by both parties, a deposit is usually required. The final step is the transfer of ownership, which involves paying the remaining balance and the property registration at the Land Registry.

Legal Considerations When Investing in Real Estate in Aruba

When investing in real estate in Aruba, it is essential to be aware of the legal considerations. Foreigners can own property in Aruba, but there are restrictions on the types of properties that can be purchased. It is advisable to consult with an attorney specializing in real estate to ensure compliance with the laws and regulations. Additionally, it is essential to clearly understand the taxes and fees associated with property ownership in Aruba. These may include property taxes, notary fees, and closing costs.

Financing Options for Buying Real Estate in Aruba

There are several financing options available for buying real estate in Aruba. Local banks and international financial institutions offer mortgage loans to foreigners, subject to specific criteria. Shopping around and comparing the terms and interest rates offered by different lenders is recommended. Additionally, having a good credit history and providing the necessary documentation, such as proof of income and identification, is essential when applying for a mortgage. Working with a reputable mortgage broker can simplify the financing process and ensure you secure the best possible terms.

The Potential Return on Investment in Aruba Real Estate

Investing in real estate in Aruba has the potential for significant returns on investment. The island's thriving tourism industry ensures a high demand for vacation rentals, allowing investors to generate rental income year-round. Additionally, property values in Aruba have been steadily increasing over the years, making it a favorable market for long-term appreciation. Real estate in Aruba can be a lucrative investment opportunity with the right property and proper management.

Conclusion: Your Guide to Investing in Paradise

Aside from the fact that it is a fantastic island with flourishing tourism, Aruba is currently undergoing a $1 billion worth of beautification and revitalization that also includes the modernization of its international airport. That's a pretty strong hint that now is the time to invest in real estate in Aruba. Aruba offers a unique opportunity for foreigners to invest in real estate and own a slice of paradise. The stable economy, favorable tax laws, and stunning natural beauty make it an attractive destination for property buyers. By understanding the local market, working with a reputable real estate agent, and being aware of the legal considerations, foreigners can easily navigate the process of purchasing real estate in Aruba. With careful planning and research, investing in real estate in Aruba can be a rewarding and profitable venture.