The cost to buy property in Aruba, beyond the purchase price, includes closing costs of roughly 5 to 9% of the property’s value, which covers transfer tax, notary fees, and registration. On top of that, there are some smaller ongoing costs of ownership each year, like property tax and, on some properties, an annual ground lease. The good news is that Aruba’s annual costs are generally lower than what most US and European buyers are used to back home.
Let me break down exactly what you pay, and when, so there are no surprises at the closing table.
The One-Time Closing Costs
These are the costs you pay once, at the time of purchase, on top of the property price itself.
Transfer tax. This is the biggest single closing cost. It is 3% on the property value up to AWG 250,000, which is roughly USD 140,000, and 6% on the value above that. One thing worth knowing: the tax is calculated on whichever is higher, the actual purchase price or the Tax Department’s assessed value. The buyer pays this to the government, through the notary, at closing.
Notary fees. In Aruba, a notary, who is a civil law professional, handles the legal transfer of property. Their fee for the transfer deed usually runs about 1 to 2% of the purchase price. If you are taking out a mortgage, there is a separate notary fee for the mortgage deed, also around 1 to 2% of the loan amount. Notary fees follow a regulated scale, so this is not really an area where you shop around for a better price.
Registration and cadaster fees. These are the smaller administrative costs for registering your new ownership with the Land Registry. Usually just a few hundred dollars.
Bank fees, if you are financing. If you use a local Aruban bank, plan for an additional closing fee, often around 1% of the loan amount, plus appraisal and mortgage registration costs.
A Rough Example of the Cost to Buy Property in Aruba
To put it all together, on a property of around USD 500,000 paid in cash, you would typically budget somewhere in the range of 5 to 9% on top of the purchase price for transfer tax, notary fees, and registration combined. The notary will send you a detailed cost estimate before closing, with the exact figures laid out, so you will know precisely what you are looking at well ahead of the signing.
The Annual Costs of Owning
Once the property is yours, here is what you can expect each year.
Property tax (grondbelasting). This is an annual tax based on the assessed value of the property. For non-residents, which most international buyers are, the rate is 0.6%, or about USD 6 per USD 1,000 of value. For Aruban residents it works on a lower sliding scale, starting tax-free at the bottom and rising with the value of the property. Either way, it tends to come out lower than the property taxes many buyers are used to back home.
Ground lease (erfpacht), on long-lease land only. If your property sits on long-lease land rather than freehold, you pay an annual ground lease fee to the government. Long-lease land is government-owned, typically on a 60-year term that renews automatically, and the yearly fee is based on the property and the lease terms. This is not a tax, it is the rent for the underlying land, and it is worth asking about specifically before you buy.
Utilities. Water and electricity in Aruba cost more than most newcomers expect. The island produces both through desalination and a mix of fuel and solar, and the pricing reflects that. Air conditioning is the big variable, so a well-shaded, well-insulated home costs noticeably less to run.
Insurance. Homeowner’s insurance here is generally more affordable than in hurricane-prone parts of the US, because Aruba sits outside the hurricane belt. The exact cost depends on the property’s value and coverage.
HOA or condo fees, if they apply. Condo buildings and gated communities charge fees that cover things like pool maintenance, security, landscaping, and reserves. These vary widely from one building to the next, so it is always worth checking before you commit.
The Costs People Forget to Budget For
A few things tend to catch buyers off guard, so I always like to mention them up front.
Furnishing. Imported furniture is expensive on the island. Many buyers either ship from home or set aside a real budget to furnish the place properly, especially for a rental.
Property management. If you are renting the property out and you are not on the island, you will want a manager. Fees are higher for short-term rentals than for long-term, and a good manager is well worth it.
Ongoing maintenance. Salt air, strong sun, and constant trade winds are hard on exterior paint, AC units, and pool equipment. A realistic annual upkeep budget saves headaches later.
Frequently asked questions
How much is the transfer tax when buying property in Aruba?
Transfer tax in Aruba is 3 percent on the first AWG 250,000 of value and 6 percent on the portion above that. It is calculated on the higher of the sale price or the tax authority’s assessed value, and the notary collects it at closing and remits it to the government.
Who pays the transfer tax and notary costs in Aruba, the buyer or the seller?
It is common for the buyer to carry the transfer tax and the notary costs of the transfer, while the seller settles items such as any outstanding mortgage and, where applicable, a brokerage commission. These points can be negotiated, so it is worth setting them out in the koopovereenkomst rather than assuming.
What are the total closing costs when buying property in Aruba?
Closing costs include the transfer tax, the notary fee, cadaster registration, and a separate mortgage deed if you are financing. As a rough guide these often land in the range of 5 to 9 percent of the purchase price, though the exact figure depends on the property and the transaction, so it is best confirmed with the notary handling your file.
Are annual property taxes high in Aruba?
Annual property costs in Aruba are relatively low. Ground tax scales with the assessed value of the property and may not apply at the lowest value band. If the property sits on long lease land, there is also an annual canon paid to the government, and condominium or HOA fees apply where relevant.
Want Real Numbers for a Specific Property?
Every property is a little different. The closing costs on a small condo look nothing like those on a larger villa, and annual costs vary a lot depending on the area, the building, and whether you plan to rent it out.
If you have a particular property in mind, or even just a budget you are working with, I would be happy to put together a real cost estimate for your situation. No obligation, no pressure. Just clear numbers so you know exactly what you are looking at.
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Reach out to Brad & Ellen at Aruba Lifestyle Realty.
Your home, your lifestyle. Bo kas, bo estilo di bida.
Updated: October 2026 | Aruba Lifestyle Realty | Brad Croes & Ellen Aartsen