The True Cost of Buying (and Owning) a Home in Aruba

The listing price is the number that grabs you. It's rarely the number that matters most. Here's what buying — and owning — in Aruba really involves.

At the closing table.

The big one-time cost is transfer tax, and which rate applies depends on whether the home will be your sole main residence. For a primary residence it's charged in two bands: 3% on the first AFl 250,000 (about US$143,000), and 6% on everything above — so a US$400,000 home is 3% × US$143,000 = US$4,290 plus 6% × US$257,000 = US$15,420, or US$19,710. For other property — a second home, or a home bought while you keep a main home elsewhere, which covers most non-resident buyers — it's 6% on the whole value over AFl 250,000, so that same US$400,000 home is US$24,000. On top come notary fees (typically largely set by law) and registration fees, which your notary calculates and settles from escrow (figures as of 2026 — confirm current).

Every year after.

Ownership is a stream of costs, not a single payment: property tax (grondbelasting) — resident individuals pay progressive bands (0% up to AFl 120,000, then 0.20%, 0.30%, 0.40%, and 0.60% as value rises), but non-residents and companies, which is most foreign buyers, pay a flat 0.6% of total value; a long-lease canon if applicable (commonly around 6% of the ground value per year); utilities (notably higher, because Aruba imports its fuel); and maintenance (salt air accelerates wear).

One smart offset: solar.

Aruba supports solar with import-tax exemptions and net metering — one 10KW system covers about 75% of a household's consumption. Contact the utility, Elmar, for details.

And don't forget home-country tax.

US citizens are taxed on worldwide income, generally report Aruban rental income, and can use the foreign tax credit — but there's no US–Aruba tax treaty, and the US–Netherlands tax treaty does not extend to Aruba, so get cross-border advice.

The takeaway.

Before you fall for a price, build the full picture: transfer tax and closing costs up front, then the real annual cost of ownership. That's how a dream purchase stays a joy instead of a surprise.