We recently had the pleasure of hosting Maria Thayisa from Deloitte Aruba on our podcast to discuss how non-residents can purchase property in Aruba, particularly through an LLC (Limited Liability Company). From asset protection to tax strategies, Maria shared essential guidance for international investors looking to make informed decisions.
Why Consider an LLC for Property Investment?
Non-residents often choose an LLC for three main reasons:
-
Asset Protection: Separates personal assets from property liabilities.
-
Liability Management: Provides a legal structure to reduce personal financial risk.
-
Income Management: Simplifies rental income tracking and expense deductions.
Maria also highlighted that non-residents must meet specific requirements to establish an LLC in Aruba, making professional advice crucial from the start.
Understanding the Tax Landscape
Tax implications are a critical consideration for foreign buyers. According to Maria, non-residents should be aware of:
-
Personal Tax Consequences: Buying property may trigger tax obligations in Aruba and potentially in the investor’s country of residence.
-
Deductions & Allowances: Certain expenses, such as property maintenance and mortgage interest, may be deductible, helping reduce personal income tax liability.
-
Property Tax System: Aruba charges an annual property tax (grondbelasting) based on the value of the property. Rates may vary.
-
Individual vs. LLC Ownership: Owning through an LLC may offer additional tax advantages, streamline reporting, and provide more favorable treatment of rental income compared to individual ownership.
The Deloitte Advantage
Deloitte Aruba offers comprehensive services for non-residents, including:
-
Assistance with LLC formation and registration.
-
Tax strategy, reporting, and compliance, both in Aruba and internationally.
-
Ongoing support for bookkeeping, rental income management, and regulatory updates.
Why Speak to Deloitte Early?
Maria recommends consulting a professional before making any property investment decisions. Early guidance helps determine whether an LLC is the right structure, ensures tax efficiency, and prevents costly mistakes down the line.
Looking Ahead: Aruba as an Investment Destination
With its stable economy, strong tourism market, and growing appeal among international buyers, Aruba continues to attract real estate investors. Staying informed on legal and tax requirements and having expert guidance, remains key to a successful investment.
If you’d like to hear these insights directly from Maria Thayisa of Deloitte Aruba, head over to our YouTube or Spotify channels to watch or listen to the full episode.
