Facts & Info

Below is some useful information for those who are considering investing, opening a business, and/or residing on the island. Please remember that Aruba Brokers is able to provide you with advising, and our expertise can help expedite the release of business, investment and other permits.

Investing in Arubaumbre-invest

Aruba is fast developing as an international financial services center. Favorable provisions in the form of special tax concessions for investment companies exist. Some possibilities are Finance Companies, Offshore Banking Companies, Royalty Companies, Investment and Holding Companies. Another interesting possibility is the AVV or Aruba Exempt Company.

A business license is required for an incorporated company and non-residents always needs a business license for starting a business on the island. The granting of a license depends on the kind of business that will be established, an important factor being whether the business contributes to an enlargement of the economic basis of Aruba and if it is capital-intensive.

Before starting your own business other authorities may have to be contacted to obtain licenses and for you to become familiar with procedures and regulations.

Business license application requirements differ depending on the type of businesses with some having special requisites such as restaurants, beer houses or cafés; car rental, bus tours and water sport related companies.

There are certain guidelines which need to be taken into consideration when forming a company and it is important to be familiar with these.

Licenses

Before starting its business operations, a corporation must apply for the following licenses:

A business license

This allows the company to start and maintain a business in Aruba. Applications must be directed to the Minister of Economic Affairs.

A director's license

Must be sought for each of the company's foreign managing directors, allowing him to act on behalf of the company. Applications must be directed to the Minister of Economic 
Affairs.

The application for a business license has to be done with:

Directie Economische Zaken
L.G. Smith Boulevard 160
Oranjestad, Aruba
Phone: +297 582 1181 / 582 1942 
Fax +297 583 4494

After the application is presented on sealed paper (obtainable with the post office and Board of Taxes) to Economic Affairs you are called to give further information on:

  • the proposed activities of the company
  • the number of employees
  • the projected investment
  • the location of the company
  • personally of the managing director(s), stockholder(s) or owner(s)
  • the remaining documents e.g. permits for different branches, work and residence permit, proof of registration in the Census Office

Upon receipt of confirmation of the business license, a confirmation fee has to be paid. It is recommended to allow ample time for the application. As it is forbidden to establish a business without a license, authorities can close down the company with immediate effect.

NOTARY’S OFFICE


Civil Law Notary M.J.C. Tromp 
Sta. Cruz 35 
Oranjestad
Aruba
Tel: +297 585 3500 
Fax: +297 585 4222


 
Civil Law Notary F.E.E. Tjon Ajong 
Irausquin Blvd. 22 Arfa Building 
Oranjestad
Aruba
Tel: +297 588 3488 
Fax: +297 588 3444


 
Civil Law Notary Rodriguez-Taekema 
De Lasallestraat 60 
Oranjestad
Aruba
Tel: +297 588 2400
Fax: +297 588 2500


 
Civil Law Notary Yarzagaray Bodeker & Eman 
L.G.Smith Blvd. 20 
Oranjestad
Aruba
Tel: +297 582 2850 
Fax: +297 582 4390
 



 
FINANCIAL INSTITUTIONS
 


Aruba Bank N.V.
Cumacuri 12
Oranjestad
Aruba
Phone: +297 527 7777 
Fax: +297 527 7877 
www.arubabank.com
 


Caribbean Mercantile Bank N.V. 
Caya G.F. Betico Croes 53
Oranjestad
Aruba
Phone: +297 582 3118 
Fax: +297 582 4373
www.cmbnv.com
 



R.B.T.T. Bank Aruba N.V.
Italiestraat 36
Oranjestad
Aruba
Phone: +297 523 3100
Fax: +297 582 1756
www.rbtt.com 
 
 



Banco di Caribe N.V.
Vondellaan 31
Oranjestad
Aruba
Phone: +297 523 2000 
Fax: +297 583 2422 
www.bancodicaribe.com
 



Aruban Investment Bank
Wilhelminastraat 38
Oranjestad
Aruba
Phone: (297) 582-7327
Fax: (297) 582-7461
 


GOVERNMENT INSTITUTIONS
 

Free Zone Aruba N.V.
Avenida Milo Croes 118-A
2nd Floor Dakota
Aruba
Phone 582-0909
Fax 582-0888
www.fzanv.com


TOURISM


 Aruba Tourism Authority
L.G. Smith Blvd. 172
Eagle, Aruba
Dutch Caribbean
Phone: (297) 582-3777
Fax: (297) 583-4702
www.aruba.com

 

Home-soldThe first step is to prepare and sign a preliminary Sale/Purchase Agreement with the owner of the property.

This will include the basic terms and conditions applicable for the sale/purchase of the property. By signing this, the Seller is committed to sell the property to you. After that;

  • A security deposit of 10% of the Purchase amount will be required in most cases.
  • Transfer the amount of the Security Deposit to a Notary office (advising can be provided when choosing one).
  • The Notary may typically require the following paper-work and documents to process the transaction:
    • Copy of a valid identification card of the buyer (passport is always the best option)
      • Personal information and purchase details
    • Copy of the transfer of the security deposit

The notary process might take 5 -7 weeks, and charges will depend on the type/difficulty of transaction.

Next, you will have to come in to sign the deed and make any final payments. It is recommended that financing is in place by the time that the  official Deeds of Sale/Purchase and Transfer of Property are signed at to be at the notary office.

 

Lease Land

Other than a property on a piece of land, you can also purchase a home which is built on “Lease Land”. Lease Land is owned by the Aruban Government, and for which a 60 year  lease has been given. To gain the right to own such a lease, you have to pay a yearly fee.

Many residents, as well as non-residents, have bought the rights to a leased land or homes situated on leased land.

Taxes

The only yearly property tax you have to pay is called “Land Tax”. contractThis tax is usually based on the selling price of the property. The first USD 34,000.00 is free of tax.

On the balance you pay USD 4.00 per USD 1,000.00 of value.

Closing Cost

When buying a home or property, the following costs will be incurred by the Buyer.

These closing costs are approximately 5 - 8% percent of the selling price, and are derived as follows;

  • Transfer tax, (this is a onetime tax), effective January 1st, 2007, 3 - 6% of the selling price, depending on the value of the property.
  • Transfer of deed (Notary fee): 2% of the selling price.
  • Mortgage deed, if applicable (Notary fee): 1% of the selling price.

Please let us know if we can answer any other questions regarding the buying process here.

Property Management

If you have recently purchased, or already own a property here in Aruba, Aruba Brokers can also provide you with Property Management Services.meeting

If your goal is to use your property mainly as an investment, we are here to simplify things for you. Below is a list of some of the services providing; 

  • Finding the right clients that wish to rent or buy your property
  • Handling the rental/sale contracts and collecting rental fees on a monthly or weekly basis
  • Making sure property is well maintained
  • Arranging for landscaping services, home renovations etc.
  • Cleaning and inspections following every tenancy, to make sure that your property is in excellent condition
  • Personnel on-call to ensure timely attention when issues arise, or repairs need to be made
  • Communicating with tenants or prospective buyers so that you have one less thing to worry about

We can provide you with many more services and benefits as a property manager, so please call us if you have any questions.