Aruba Home Caribbean Aruba Buying Guide Buying Property in Aruba More AW × Aruba Financial Overview Overview Market in Depth Rental Yields Income Tax et al Tax Example Taxes if Resident Buying Guide Landlord and Tenant Property Inheritance Country Statistics Property Investments Key Contacts Accountants Lawyers Real Estate Agents Mortgages Buying costs are low in Aruba December 11, 2012 How high are realtors’ and lawyers’ fees in Aruba? What about other property purchase costs? Transaction Costs Who Pays? Transfer Tax 3% - 6% buyer Notary Costs 1% buyer Registration Tax AWG5 (US$2.79) per document buyer Real Estate Agent’s Fee 5% seller Costs paid by buyer 4% - 7% Costs paid by seller 5% ROUNDTRIP TRANSACTION COSTS 9% - 12% See Footnotes Source: Global Property Guide How difficult is the property purchase process in Aruba? There are no restrictions on foreigners buying property. There are not many realtors in Aruba that represent the buyer. It would be prudent to hire a lawyer before entering into a purchase transaction, to protect your interests. The first step is to make an offer. Once the price has been agreed upon, the purchase agreement will be signed and a 10% deposit is paid within three to five days from the signing. The lawyer will then obtain data from the kadaster and from the tax department to determine if there are any unsettled and conflicting charges against the property, and to determine the leggerwaarde, i.e., the tax value of the property, which determines the stamp duty payable. This whole process takes about six to eight weeks. Note that the buyer bears all closing costs, e.g., the transfer tax and the notary costs, which have to be settled before signing the final deed. Footnotes to Transaction Costs Table Transfer Tax (Overdrachtsbelasting) The transfer tax is charged at a flat rates: 3% for property values up to AWG250,000 (US$139,665), and 6% for property values exceeding AWG250,000 (US$139,665). TRANSFER TAX PROPERTY VALUE, AWG (US$) TAX RATE Up to AWG250,000 (US$139,665) 3% Over AWG250,000 (US$139,665) 6% on all value over US$139,665 The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc. Transfer Tax: The Transfer Tax (Overdrachtsbelasting) is charged at a flat rate of 3% of the property value. Notary Costs: Notary fees on the transfer deed is around 1% of the selling price. Registration Tax: Registration of deeds signed by civil law notaries is mandatory in Aruba. The tax is charged at AWG5 (US$2.79) for each document submitted for registration. Agent´s Commission: Real estate agents usually charge 5% of the purchase price for their services, usually paid by the seller. Aruba - More data and information How landlord-friendly is the law in Aruba? Comments Be the first to comment on this article! Login or Register to submit a comment! In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.