If you’re a foreigner considering purchasing property in Aruba, you’ll be happy to know that the answer is yes! The government of Aruba encourages foreign investment, and anyone is able to own property on the island.
- The process for buying property in Aruba:
The process for buying property in Aruba is similar to other countries. You’ll need to find a suitable property, negotiate the price and terms, sign a contract, and pay a deposit. The contract is then delivered to a notary, who handles all the legal documentation and title work. This process can take up to three months, and delays are common, so patience is important. Once the notary’s work is complete, you’ll sign the deed, pay the balance of the purchase price and closing costs, and pay the transfer tax and any prorated property taxes.
- Closing costs and property taxes in Aruba:
Keep in mind that closing costs in Aruba can be steep, including a notary cost of 2% of the purchase price and a transfer tax of up to 6% of the purchase price. Property taxes in Aruba include a property tax of 0.4% and a land tax of $0.85 per square meter. The first $34,000 of property value is not subject to property taxes.
- Obtaining a mortgage in Aruba:
Obtaining a mortgage in Aruba may be more difficult for foreigners than in some other countries. Banks typically require a down payment of at least 35% of the purchase price, and mortgage rates are around 6%. The mortgage qualification process involves verifying assets, employment and income, and obtaining references from banks or brokerages. An independent appraisal of the property is also required.
- Types of land classifications in Aruba:
There are two main types of land classifications in Aruba: freehold and leasehold. Freehold land is owned by the property deed holder and requires no annual payments aside from taxes. Leasehold land is owned by the government and leased to the property owner for a set period of time. Leasehold land requires annual lease payments in addition to taxes.
- Visa requirements for visiting and living in Aruba:
It’s also a good idea to familiarize yourself with the visa requirements for visiting and living in Aruba. Most citizens of North America, South America, and Europe can visit Aruba for up to 90 days with no visa. If you plan to stay longer, you’ll need to apply for a residency permit, which is good for one year and can be renewed annually.
- Doing your due diligence when buying property in Aruba:
When buying property in Aruba, it’s important to do your due diligence. Research the property, the neighborhood, and the seller, and consider hiring a lawyer to review the contract and protect your interests. With a little planning and preparation, you can easily become a property owner in this beautiful Caribbean paradise.
- Expert assistance from Aruba Real Estate Brokers:
Now that you know what it takes to buy property in Aruba, it’s time to start your search. If you’re looking for expert guidance and assistance, consider contacting Aruba Real Estate Brokers. Our team of experienced agents is here to help you navigate the process and find the perfect property for you. We have a wide range of listings to choose from, including beachfront homes, villas, condos, and more.
So don’t wait any longer to make your dream of owning property in Aruba a reality. Contact Aruba Real Estate Brokers today and let us help you take the first step towards your new life on this beautiful Caribbean island.