1. Transfer taxes when buying a property in Aruba:
If you are considering purchasing a property in Aruba, it is important to be informed of everything, including the associated fees. This may assist you, as the buyer, in selecting your budget wisely so that you are able to find the perfect home for you and your family.
In Aruba, both residents and non-residents must pay transfer taxes when purchasing real estate on the island. When the property's deed is legitimately transferred from the seller to the buyer, this takes place. At the moment of the transfer, the notary is mandated by law to collect the transfer tax for the government.
The transfer tax rate is a percentage of the highest value between the Tax Department's appraised value and the transaction (
economic value), as established by the notary public (if applicable).
Taxes on the transfer of real estate are based on the property's value:
For both residents and non-residents:
All transactions are subject to a 3% transfer tax up to and including AFL. 250,000.00 and a 6% difference tax.
The notary will charge this as an additional closing fee that the buyer is responsible for paying. This must be canceled before the legal transfer of the deed.
As of January 31st, the transfer of shares in real estate businesses is also taxable.
Most of this information can be found on the tax Aruba department's website: here
Recent developments of the Fiscal Changes for this year can be read in our Blog Post ' Fiscal Changes 2023' for more information.
2. Yearly property tax in Aruba:
The tax is calculated as a percentage of the property's total value, which can be either the purchase price or the value recorded with the tax office. The higher value is used to determine the yearly property tax.
Find below the rates as stipulated in the national ordinance.
- For taxable persons, being natural persons who are residents of Aruba, the percentage is:
- With a value of AFL. 120,000 or less: 0%;
- With a value from AFL. 120,000 but less than 250,000: 0.20%;
- With a value from AFL. 250,000 but less than AFL. 500,000: 0.30%;
- With a value from AFL. 500,000 but less than AFL. 750,000: 0.40%;
- With a value from AFL. 750,000 or more: 0.60%.
- For taxable persons, being natural persons who are non-residents:
- For taxpayers other than those referred to in the second paragraph, the percentage is 0.6% of the total value of the immovable property.
Remain informed. If there is any fresh information, we will definitely talk about it here!