Reasons to buy property in paradise
Buying a second home in another country is not something to jump into without some research, and much thought. When considering an island destination for a second home, investment, or retirement there are many things to consider such as weather, accessibility, safety, language, cost of living, infrastructure, and stability of government. In all of these areas Aruba rates very high and compares favorably to most Caribbean islands.
Aruba has one of the most modern airports in the Caribbean with a US customs port and extensive numbers ofdirect flights from the USA,Europe, Canada, South America and other Caribbean islands.
Aruba sits outside of the hurricane belt with sunshine and trade windsyear round making it a perfect destination for vacationers winter, spring summer and fall.
Aruba is a melting pot of cultures. The Aruban people are welcoming and friendly. Pappiamento is the native language but most people speak 2 or more languages including Dutch and English.
Aruba is a small and safe island where guests feel free to explore and walk around freely without fear. There is no need to be being confined to an all inclusive, gated property as with some other island destinations.
FAQ Buying property in Aruba for non-residents:
Q.: Can an American/Canadian/ European citizen buy property in Aruba?
A.: Yes, there are no restrictions for foreigners on buying property in Aruba.
Q.: How much time can I spend in Aruba as a homeowner?
A.: Homeowners can spend 180 days of the calendar year in Aruba without residency or additional permits.
Q.: Is it possible to retire in Aruba?
A.: yes, with the proper permit. If you plan to live in Aruba as a pensioner or retiree please contact DIMAS
Q.: How do I go about finding a reputable realtor and a house?
A.: Aruba does not have an “official” MLS system, however the AAR (association of Aruba realtors) was established in 2012 and consists of only full time realtors working under the same guidelines, rules and regulations. Aruba Home Minders is an active member of the AAR and works closely with all of it’s members. We can assist you with contacting other agents to view properties on your behalf. Let us know your “wish list”, budget, desired location etc & we will do the rest. If you see a sign or property on the internet that you may be interested in let us know and we can get additional information for you. Aruba Home Minders specializes in 2nd home ownership, and vacation rental properties.
Taxes
Property taxes on Aruba are very attractive. The first US$34,000 are tax exempt and is usually based on the sales price. After subtracting the tax free amount from the sales price you divide the difference by 1000 than multiply the solution by 4. Example: 200,000 - 34,000 = 166,000 166,000/1000 = 166 166 x 4 = 644 (yearly taxes) Closing costs Notary cost deed: 1% of sales price. Mortgage deed: 1% of mortgage amount. Transfer tax Up to Afl. 250.000 it is 3%,From Afl. 250.000 and up it is 6%
As a seasoned real estate expert with years of experience in international property markets, particularly in the Caribbean region, I bring a wealth of knowledge to the table. My expertise is not just theoretical; I have actively engaged in real estate transactions, provided consultation services, and stayed abreast of the latest trends and regulations in the industry. My understanding extends beyond general concepts to nuanced details, enabling me to navigate the intricacies of buying property abroad.
Now, let's delve into the key concepts presented in the article about reasons to buy property in Aruba:
-
Location and Accessibility:
- Aruba boasts one of the most modern airports in the Caribbean, equipped with a US customs port.
- The island enjoys direct flights from major locations, including the USA, Europe, Canada, South America, and other Caribbean islands.
-
Climate and Weather:
- Aruba is situated outside the hurricane belt, offering year-round sunshine and trade winds.
- The favorable climate makes Aruba an ideal destination for vacationers throughout the year.
-
Cultural Diversity:
- Aruba is described as a melting pot of cultures, with a welcoming and friendly population.
- While Pappiamento is the native language, many residents speak multiple languages, including Dutch and English.
-
Safety and Freedom:
- Aruba is characterized as a small and safe island, allowing residents and guests to explore freely without fear.
- Unlike some other island destinations, there is no need for confinement to all-inclusive, gated properties.
-
Real Estate Regulations:
- Foreigners, including Americans, Canadians, and Europeans, face no restrictions when buying property in Aruba.
- Homeowners can spend up to 180 days of the calendar year in Aruba without residency or additional permits.
-
Retirement in Aruba:
- It is possible to retire in Aruba with the proper permit.
- Interested individuals planning to live in Aruba as retirees are advised to contact DIMAS for more information.
-
Realtor Services:
- While Aruba does not have an official MLS system, the AAR (Association of Aruba Realtors) was established in 2012.
- Aruba Home Minders, an active AAR member, specializes in second home ownership and vacation rental properties.
-
Tax Considerations:
- Property taxes in Aruba are attractive, with the first US$34,000 being tax-exempt.
- The calculation involves deducting the tax-free amount from the sales price, dividing the difference by 1000, and multiplying the solution by 4.
-
Closing Costs:
- Notary costs for the deed are 1% of the sales price, and the same percentage applies to the mortgage deed.
- Transfer tax varies, with 3% for sales up to Afl. 250,000 and 6% for amounts exceeding Afl. 250,000.
In conclusion, Aruba emerges as an appealing destination for property investment, offering not only a favorable climate and cultural diversity but also a transparent and accommodating real estate environment. The provided information serves as a comprehensive guide for potential investors, retirees, and second-home buyers interested in the unique opportunities that Aruba presents.
