In Aruba you are buying either freehold land, which you own outright with no land fee, or erfpacht land, a long government lease of usually 60 years with an annual canon where you own the building but lease the ground. Both are common and both can be a sound choice, depending on the property and your plans.

This is the distinction I most want buyers to understand before they get attached to a specific home, because it quietly shapes financing, running costs, and how the property may sell later. It is also the point where imported assumptions from North America tend to cause confusion. Erfpacht is not a lesser form of ownership, and freehold is not automatically better. They are two structures, each with a place. Let me walk through both the way I would over a coffee.

Freehold land, or eigendom

Freehold, known locally as eigendom or propiedad, means you own the land and whatever stands on it outright. There is no lease and no annual land fee to the government for the ground itself. Buyers often value freehold for a few reasons:

• You hold the land indefinitely, with no lease term to track or renew.
• There is no annual canon on the land, which simplifies your ongoing costs.
• Financing can be more straightforward, since some lenders prefer freehold.
• It may be simpler to explain and market at resale, particularly to overseas buyers.

Erfpacht land, or long lease

Erfpacht is a long lease of land that the government owns. You own the structure on it fully, and you hold strong, transferable rights to the land for the lease term. In practice erfpacht tends to work like this:

• The lease usually runs for 60 years and is generally renewable for a further term.
• You pay an annual canon, a lease fee for the land, which commonly stays fixed for the term and may be reassessed on renewal.
• You can sell, mortgage, or pass on the leasehold much as you would owned property. (though some exceptions apply!)
• Because so much desirable land carries erfpacht, ruling it out on principle could quietly remove some of the strongest locations from your search. That is why I would rather explain it than have a buyer avoid it out of unfamiliarity.

Because so much desirable land carries erfpacht, ruling it out on principle could quietly remove some of the strongest locations from your search. That is why I would rather explain it than have a buyer avoid it out of unfamiliarity.

How the two compare in practice

Rather than one being the winner, it helps to see where each tends to matter:

• Ongoing cost: freehold has no land fee, while erfpacht carries an annual canon to budget for.
• Time horizon: freehold is indefinite, while erfpacht runs on a term you should read carefully, including how far into it the property currently is.
• Financing: some lenders treat freehold more simply, though erfpacht is widely financed too.
• Location: certain prime areas are predominantly erfpacht, so land type and location are often linked.
• Resale: freehold can be easier to explain to foreign buyers, while a well-located erfpacht property can remain very marketable.

What I check before you commit

Whichever type a property is, there are details I want confirmed at the notary and Cadaster before you sign the koopovereenkomst:

• For erfpacht, the exact remaining term, the current annual canon, and the renewal conditions.
• Whether the canon is fixed for the term or subject to periodic review.
• For freehold, clean title with no liens or encumbrances against the land.
• How the land type may affect your financing and your longer-term plans for the property.

None of this needs to be daunting. It is simply the homework that lets you choose with open eyes rather than discover something after closing.

So which should I choose?

It depends on the property and on you. If you value simplicity and an indefinite hold, freehold may suit you. If the location you love happens to be on long lease, a healthy erfpacht with a long remaining term and a reasonable canon can be a perfectly sound choice. I would not steer you toward one on principle. I would rather look at the specific property, the numbers, and your plans, and help you weigh them honestly.

Talk it through with me

If you are looking at a particular home and are unsure what its land status means for you, I am happy to read the details together and explain what they imply in plain terms, so the choice feels clear rather than confusing. Reach out whenever you would like a second set of eyes.