Buying your first home in Aruba as a local starts with a mortgage pre-approval from a local bank, so you know your real budget before you start looking. From there you choose a home on freehold (eigendom) or long-lease (erfpacht) land, sign a purchase agreement, and close through a civil-law notary. Budget for transfer tax and notary fees on top of your down payment.
Start with the bank, not the listings
The most common mistake I see with first-time buyers is falling in love with a house before they know what the bank will lend. Start with a pre-approval instead. It tells you your real price range, and sellers take your offer more seriously when you have one.
Talk to more than one local bank. Each one looks at your income, your job, and your existing debts a little differently, and the terms can vary. Ask each bank what down payment it expects, which documents it needs, and how long the approval stays valid. [CONFIRM: typical documents list with one local bank.]
Local banks also run first-home campaigns and info sessions during the year, often in Papiamento. They are a low-pressure way to ask questions before you commit to anything.
An existing home, or building on your own lot
First-time buyers here usually choose between two routes. Buying an existing home means you can see exactly what you are getting and move in sooner. Building means you buy or lease a lot, get your plans approved, and finance the construction in stages.
Building can give you more house for the money, but it takes longer and asks more of you along the way. With an existing home, check the roof, the plumbing, the electrical, and the air conditioning units before you sign. Those are the repairs that surprise new owners in their first year.
Our guide to new construction versus resale in Aruba walks through the trade-offs in more detail.
Eigendom or erfpacht: what it means for your first home
Every home in Aruba sits on one of two kinds of land. Eigendom is freehold, where you own the land outright. Erfpacht is long-lease land, where the government owns the land and you hold the right to use it for a long term, paying a yearly fee called the canon.
Many first homes on the island sit on erfpacht land, and that is completely normal. Banks finance erfpacht homes all the time. What matters is the remaining term of the lease and the yearly canon, so ask for both before you make an offer. Our guide to freehold versus erfpacht land in Aruba explains the difference step by step.
What it really costs to close
On top of your down payment, you pay closing costs. The biggest one is transfer tax, called overdrachtsbelasting. It is 3 percent on the first AWG 250,000 of the value and 6 percent on everything above that. The tax is calculated on the higher of your purchase price or the official assessed value.
Here is a simple example. On a home valued at AWG 400,000, transfer tax works out to AWG 7,500 on the first 250,000, plus AWG 9,000 on the remaining 150,000, so AWG 16,500 in total.
There are also notary fees for the transfer deed, and if you take a mortgage, a separate mortgage deed and bank fees. All in, closing usually runs roughly 5 to 9 percent of the purchase price. Ask your notary for a written cost estimate before you sign. [CONFIRM with the notary: transfer tax rules, no first-home reduction.]
For the full picture, see what it costs to buy property in Aruba.
What the notary does for you
In Aruba, a civil-law notary handles the legal transfer, not a lawyer. The notary is neutral and works for the transaction itself. They check that the seller really owns the home, search the land registry for mortgages or claims, hold your deposit safely, and register the home in your name.
You can choose which notary you use. Our guide on how to pay for property in Aruba explains how the deposit and the final payment move through the notary.
Community housing and FCCA routes
If you are buying with a modest budget, it is worth following the Fundacion Cas pa Comunidad Arubano (FCCA). FCCA builds and sells homes for local families, and it runs campaigns where a home and the land under it come together in one mortgage package. Its “Key in Your Hand” campaign this year was aimed at 20 families.
These campaigns have their own requirements and application windows, so check FCCA’s channels directly and gather your documents early. [CONFIRM: current FCCA campaign status and eligibility.]
First-buyer mistakes I see most often
- House hunting before you have a pre-approval
- Forgetting to set aside money for closing costs
- Not asking whether the land is eigendom or erfpacht, and how many years are left on the lease
- Skipping a proper inspection on an older home
- Borrowing the absolute maximum, with nothing left for utilities, insurance, and repairs
That last one matters more here than people expect. Electricity and water cost more on an island, and a home with good shade and insulation can make a real difference each month. Our breakdown of what it costs to own a home in Aruba each year helps you plan for life after the keys.
Frequently Asked Questions
Do I need a down payment to buy my first home in Aruba?
In most cases, yes. Local banks usually expect you to bring some of your own money toward the purchase, plus the closing costs. The exact amount depends on the bank, your income, and the property, so a pre-approval is the best way to find out what applies to you.
How much is transfer tax on a first home in Aruba?
Transfer tax is 3 percent on the first AWG 250,000 of the value and 6 percent on the amount above that, the same rules as for any other buyer. On a home valued at AWG 400,000, that comes to AWG 16,500.
Can I get a mortgage on a home on erfpacht land?
Yes. Local banks regularly finance homes on erfpacht land. They look at the remaining term of the lease and the yearly canon, so have those details ready when you apply.
How long does it take to buy a home in Aruba?
From an accepted offer to receiving the keys usually takes around 8 to 10 weeks. Financing can add a few weeks, and building your own home takes considerably longer.
Buying your first home is a big step, and it is easier with someone local in your corner. Whether you are ready this year or still saving, I am happy to talk it through, in English, Papiamento, Dutch, or Spanish. You can start on our buyers page whenever the time feels right.
Your home, your lifestyle. Bo kas, bo estilo di bida.
Updated: November 2026 | Aruba Lifestyle Realty | Brad Croes and Ellen Aartsen