Are you considering purchasing a property in Aruba but have some questions? We've compiled a list of the most commonly asked questions to help you navigate the process smoothly.
1. Can a non-local purchase a home in Aruba? What is required?
- Yes, as a nonresident, you can buy property in Aruba.
- You will need to fill out compliance documents and provide identification such as:
- Your passport
- Driver's license
- Proof of income
- And other requested documents
2. What additional costs can you expect when purchasing a home?
- Notary costs
- Closing fees
- Insurance (if needed)
- Real estate commissions
3. Which institution handles the formal closing in Aruba?
- Aruba has 6 civil law notary offices.
- The notary is the only professional authorized to transfer formal deeds in Aruba.
- Buyers have the option to choose from the following notaries:
- Notary Leaf
- Notary Johnson
- Notary Helmeyer
- Notary Rodriguez Teakema
- Notary Yarzagaray
- Notary Tromp
4. How much deposit is required when purchasing a property?
- The deposit amount can vary based on the property or community bought.
- For a property, a deposit of 10% is typically required through the notary, and it is usually nonrefundable.
- In some communities, developers may request a direct deposit, which can range from 5% to 20% of the purchase price.
5. Can you get a mortgage in Aruba as a resident or nonresident?
- Yes, both residents and nonresidents can obtain a mortgage in Aruba.
- Each bank has its own rules and regulations.
- Residents can potentially secure financing for 80-100% of the property value, depending on their income and savings.
- Nonresidents can typically obtain financing for 40-60% of the property value, depending on factors such as mortgage age and income.
- Interest rates usually range from approximately 5% to 8%.
- Keep in mind that these figures are estimates and are subject to change based on bank regulations.
6. How long can I stay in Aruba if I own a property on the island?
- Property owners can stay in Aruba for a maximum of 180 days within a calendar year.
- If you wish to stay longer, you can apply for residency, which involves a separate process and may have associated costs.
7. What is the difference between private land and lease land?
- Private land ownership allows you to own both the land and any structures on it.
- Private land offers more flexibility for construction projects, including the possibility of building multi-level homes, subject to location-specific regulations.
- Lease land is land provided by the government for locals to build their homes.
- When purchasing a property on lease land, you own the house but not the land itself.
- Lease agreements typically last for 60 years, after which the land will be renewed.
8. How much are property taxes in Aruba?
- For private land, property taxes are approximately 0.6% of the purchase price.
9. Do I need to conduct an inspection before buying a property?
- It is highly recommended to have an inspection done, which typically costs between $250 and $400, depending on the size of the house.
10. Why should I choose a realtor to help me buy or sell my home?
- A real estate agent handles various tasks, including:
- Arranging viewings and appointments
- Conducting research on properties
- Negotiating on behalf of buyers or sellers
- Preparing all necessary documents
- Assisting with compliance for both parties
- Facilitating the closing process at the notary's office
- A realtor is more than just a home finder; they act as a trusted intermediary throughout the transaction, handling all the work behind the scenes.
We hope this FAQ section has answered some of your questions and provided valuable insights into the real estate market in Aruba. If you have further inquiries or require assistance, feel free to reach out to us.