Current Listings: 196
Average List Price: 236,637

Currency: Aruban guilder
Population: 103,000
Capital: Oranjestad

Aruba

Real Estate Practices in Aruba

Overview of Aruba

There are many homes and lifestyles to choose from in Aruba.  While some may opt for a beach front condominium or villa, others are more attracted to inland properties with quick access to shopping and restaurants.  The size of Aruba allows for quick access via car to anywhere on the island.

Real Estate Practices in Aruba

While the official currency is the Aruban Florin, most listings are featured in U.S. Dollars.  There are no restrictions on foreigners buying property in Aruba thus streamlining the home buying process.

Buyers are encouraged to open a bank account in Aruba as soon as possible upon arrival and obtain a Certificate of Importation to secure and expedite the wire transfers made for property purchase.   While mortgages are available through the local banks in Aruba, the down payment required (40%) and rate is considerably higher than that obtained from an overseas mortgage.

Once the offer has been accepted, the purchase agreement will be signed and a 10% deposit is due within three to five days from the contract signing. The notary (who is also an attorney) assigned to the transaction will obtain data from the property registration office and tax department to determine if there are any unsettled charges against the property.  The tax value of the property will also be determined at this time to calculate the stamp duty paid at closing.  In Aruba, there are only four notaries appointed by the King of the Netherlands and property closings are completed by the one of these four notaries.

The buyer is responsible for all closing costs (transfer tax, notary fee) and these costs must be settled prior to signing the final deed.  The Transfer Tax is a flat rate of 3% - 6% depending on the value of the property.  Notary fees are usually around 1% of the selling price.  The Deed Registration Tax is required by law and this fee is usually included in the Notary fee.  The agent’s commission is usually 5% and paid for by the seller.

The entire transaction can take up to six months to complete; however, many are closed within 3 – 5 months.