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.