Besides the purchase price itself, buyers should budget for transfer costs, notary fees, registration costs, annual property taxes, homeowner association (HOA) fees and β if applicable β annual lease land payments. Compared with many other jurisdictions, Aruba remains a relatively straightforward place to buy real estate: there is no annual wealth tax on privately owned property, and Aruba does not levy a general capital gains tax on private individuals selling residential real estate.
This guide explains the most common costs to expect before purchasing a condominium or home in Aruba. For price ranges by area, pair it with our cost guide and price index.
Aruba property costs at a glance
| Cost | Frequency | Typical amount |
|---|---|---|
| Transfer tax | One-time | The largest acquisition cost β confirmed by your notary at closing |
| Notary fees | One-time | Approximately 1%β2% |
| Registration costs | One-time | Relatively small administrative costs |
| Total closing costs | One-time | Budget approximately 6.5%β8% of the purchase price |
| Property tax (grondbelasting) | Annual | Based on the property's assessed value |
| HOA fees | Monthly | Varies by condominium |
| Ground rent (lease land only) | Annual | Only applies to lease land properties |
| Rental income tax | Annual | May apply when generating rental income |
| Capital gains tax | Upon sale | None for most private individuals |
Closing costs
One of the biggest surprises for international buyers is that purchasing costs extend beyond the agreed purchase price. As a general rule, budget approximately 6.5% to 8% of the purchase price to cover taxes, notary fees, registration expenses and other acquisition costs. If local mortgage financing is used, expect additional bank and mortgage-registration costs.
Transfer tax
Transfer tax is generally the largest acquisition cost. The amount depends on the applicable tax rules at the time of transfer and is normally collected by the civil-law notary at closing. Because tax legislation can change, always request an up-to-date cost estimate from your notary before completing the transaction rather than relying on a fixed percentage.
Notary fees
Every property transfer in Aruba must be completed before a civil-law notary. The notary performs several important tasks, including:
- Verifying legal ownership
- Reviewing title documents
- Preparing the deed of transfer
- Registering the transaction with the Land Registry
- Collecting taxes and government fees
Notary fees generally range between 1% and 2% of the purchase price, depending on the complexity of the transaction.
Registration costs
Government registration fees and administrative costs are relatively modest compared with transfer tax and notary fees. They are normally included in the closing statement prepared by the notary.
Property tax (grondbelasting)
Property owners pay an annual property tax. The amount is calculated using the property's assessed value rather than its market value. For many residential properties, annual property taxes remain relatively modest compared with other Caribbean destinations.
HOA fees
Most condominium communities charge monthly Homeowners' Association (HOA) fees. These generally cover:
- Building insurance
- Exterior maintenance
- Landscaping
- Swimming pools
- Elevators
- Security
- Common-area cleaning
- Reserve funds for future maintenance
Monthly HOA fees vary significantly depending on the age of the building, its amenities and the level of service. Before purchasing any condominium, review both the current HOA fees and the financial health of the association.
Lease land (erfpacht)
Aruba offers two forms of land ownership:
Property land
You own both the land and the improvements built on it.
Lease land (erfpacht)
The government owns the land, while you own the improvements. Lease periods are typically long-term and renewable, and an annual lease payment (canon) is due. For most buyers, lease land is not a disadvantage β provided the remaining lease term and annual ground rent are understood before purchase.
Your notary can confirm the remaining lease term, the annual canon, the renewal status and any pending lease extensions.
Rental income taxes
Owners who generate rental income may have tax obligations in Aruba. The applicable treatment depends on factors including whether the property is rented short-term or long-term, whether ownership is personal or corporate, and the owner's tax residency. Many legitimate operating expenses may be deductible. Professional tax advice is recommended before beginning rental operations.
Capital gains tax
One of Aruba's advantages for investors is that private individuals generally do not pay capital gains tax when selling residential real estate. However, your home country may still tax worldwide capital gains, so international buyers should always obtain tax advice in both Aruba and their country of residence.
Example budget
For a US$500,000 purchase, a rough all-in closing picture looks like this:
| Cost | Estimated amount |
|---|---|
| Transfer tax* | β US$18,000 β 25,000 |
| Notary fees | β US$5,000 β 8,000 |
| Registration costs | β US$500 β 2,000 |
| Estimated total closing costs | β US$32,500 β 40,000 |
*Actual transfer tax depends on the applicable rates and legislation at the time of transfer.
Annual ownership costs
Besides your mortgage (if applicable), most owners should budget for annual property tax, monthly HOA fees, utilities, insurance, annual ground rent (lease land only) and routine maintenance. These ongoing costs should always be weighed when comparing different condominium developments.
Personal vs company ownership
Some investors purchase property through a company rather than in their personal name. This can offer advantages relating to estate planning, multiple owners, liability and business operations. However, company ownership also introduces additional legal, accounting, tax and compliance obligations. For most individual buyers purchasing a vacation home or retirement property, personal ownership is generally the simpler option. Always obtain professional legal and tax advice before deciding on an ownership structure.
Want a precise cost breakdown for a specific condo?
Tell us the unit you're considering and we'll build a realistic all-in budget β purchase price, closing costs, HOA and any ground rent.
Get a cost breakdownFrequently asked questions
How much are closing costs when buying property in Aruba?
Budget approximately 6.5% to 8% of the purchase price for one-time closing costs β transfer tax (usually the largest item), notary fees of about 1β2%, and smaller registration and administrative charges. Financing adds bank and mortgage-registration costs.
How much is transfer tax in Aruba?
Transfer tax is normally the largest acquisition cost and is collected by the notary at closing. Because rates and exemptions can change, always request a current calculation from your notary rather than relying on a fixed percentage.
Is there capital gains tax on property in Aruba?
Aruba does not levy a general capital gains tax on private individuals selling residential real estate, and there is no annual wealth tax on privately owned property. Your home country may still tax worldwide gains, so get advice in both jurisdictions.
Are there annual property taxes in Aruba?
Yes β an annual property tax (grondbelasting) is calculated on the property's assessed value. For many residential properties it stays relatively modest compared with other Caribbean destinations.
What is lease land (erfpacht)?
On lease land, the government owns the land and you own the building on it, paying an annual ground rent (canon) on a long-term, renewable lease. It's common and generally fine β just confirm the remaining term and annual canon with your notary before buying.