Aruba real estate market overview: prices, housing types and investments

Aruba real estate market. Prices, housing types and the best choice for an expatriate

Real estate of the tourist island consists of beach resorts, hotels, ending with stylish apartments. The very system of obtaining a residence permit is not new. Already as a decade the state has been honing the strategy of exchange of residence permit for investment in island real estate.

The very way to obtain real estate in Aruba is extremely simple. Like every respected and developed country, the islanders require strict compliance with the rules and timely payment of taxes. And with the help of experts, the procedure can be simplified to a minimum.

You can both directly purchase this housing, and take a mortgage from the representation of Dutch banks. Every foreigner has the right to purchase real estate in Aruba.

The real estate deposit has a starting price of $ 200,000.

Here are the steps to take:

Start searching for the desired property (search engine sites will be provided by GARANT.in experts)

Find the ideal option and make an offer to the seller.

Immediately after signing the contract of sale, leave 10% of the value of the property as a deposit (this guarantees the seller and the state that you will be able to buy the property).

After 6 weeks, the notary and experts will contact you to pay for the rest of your new home.

Also, you have to pay the notary fees (2% of the property value), pay the transfer tax (6% of the property value). Every year, you also pay property tax (0.4% of the value), and land tax ($0.85 per square meter).

Residence permits are issued for exactly one year. After its expiration, you will be asked to extend your residence permit at the consulate.

A nice addition to buying real estate is also the fact that immediately after purchase, you have the option of renting out your property. This is a very profitable investment for those who have split their minimum deposit on the purchase of real estate of different varieties.

Real estate market on the island

The most expensive properties will be by the sea, and in Aruba's capital, Oranjestad. Since most tourism takes place on open, public beaches, it will be easy for wealthy investors to turn their attention to the plethora of private, and even more delightful beaches and locations.

You can choose your future property on both international (like Re/Max) and local sites. The best properties, with a quiet atmosphere, tend to be found in places like Eagle Beach, Malmok, Oranjestad, and Tierra de Sol.

While condos and houses near the sea will cost starting at $150,000, rich and ornate architecture in picturesque locations will cost an investor $1,000,000 and up.

It is worth mentioning that Aruba is the new tourist Mecca. By purchasing a dainty property near the sea, you have every right to operate and rent your building. In the long run, this will easily pay big dividends and cover your moving expenses.

Also, judging by the infographic below, both the real estate and tourism markets are strong and growing inexorably. This only predicts a steady increase in the price of your property, and an increase in the general standard of living.

All taxes in Aruba are quite low. The main tax to pay attention to is on the purchase of real estate.

6%, if you buy a property valued at less than $250,000.

3%, when buying an object with a price of more than 250,000 $

Also worth mentioning is the land tax (0.4% per year), and the fact that profits made from the exploitation of your property are not taxed! Island real estate areas

Island real estate and its type depend primarily on the distance to the sea. That housing, which is located near the resorts, will cost more, but also will bring a much higher profit when rented out.

Let's consider the main areas of buying real estate.

Oranjestad (Oranjestad, Dutch for Orange City) is the capital and largest city of the island, with more than 30,000 inhabitants. Colonial architecture, old monuments, museums, and generally pleasant architecture lure investors with its charm. Real estate here is not as expensive as in the rest of the coastal parts of the island.

Noord (Nord, Dutch for North) is the largest city on the island and 20 years ago had a population of about 17,000.

This city is Aruba's tourism capital. Here you will find everything from first-class hotels, to soccer fields, bars, boutiques, golf clubs and entertainment centers. Close to the beaches, real estate is predominantly low-rise and resembles a western, colonial style. 

Palm-Beach (Palm Beach) - a neighborhood similar to the American Las Vegas. Multistory buildings and hotels, neon signs, large casinos and modernist architecture. Spend time here come tourists who are tired of passive rest on the beach. The price of real estate here varies greatly. It can be both much lower and much higher than in the city of Noord.

Malmok (Malmok) - a small town north of the capital Oranjestad. Tourists come here for the excellent beaches and water sports. There is a large coastal reef and a variety of marine life, making this place known as a “diver's paradise”.

Tierra del Sol (Tierra del Sol, from Papiamento, Land of the Sun) is the most luxurious neighborhood on the island of Aruba. Real estate here is the most expensive, and entertainment is only for lovers of the finest and best in the world. Among the residents, this area is referred to as “the fields for millionaires”.

Housing here are huge townhouses, villas and palaces in the Mediterranean style.

Residence permit in Aruba. From real estate in Aruba - to citizenship of the European Union

Aruba real estate is an effective way to obtain EU citizenship. In order to understand what stages you need to go through in this process, let's look at our client's case.

Alexey S. from Moscow, 36 years old. Contacted the Moscow office of the company in July 2019.

Purpose: The client, together with his wife Alla and daughter of six years old, seeks to obtain EU citizenship.

The financial situation of the family is solid and stable. Firstly, the bank deposit had funds from the sale of inherited real estate. Secondly, both spouses had a good income. Alexey was seriously interested in diving, had an instructor's license. He earned on the sale of equipment for diving and active recreation on the water.

Alla shared her husband's hobby. She was engaged in organizing recreation for groups of tourists who are fond of diving and snorkeling. She herself acted as an instructor and guide.

The spouses could spend no more than $300,000 on investments. The time of obtaining citizenship was not crucial.

Based on the client's goals and starting opportunities, the lawyers suggested that they apply for a residence permit in Aruba and then apply for Dutch citizenship after 5 years.

Alexey agreed with the plan for a number of reasons:

the size of the minimum investment under the program (from €200 thousand) did not exceed the amount the family was willing to invest;

the prospect of obtaining EU citizenship in 5 years; 

Aruba residence permit provided new opportunities for the family business.

In July 2019, a cooperation agreement was signed. The company's lawyers, together with the client, began collecting the necessary documents.

At the same time, Alexei and his wife remotely chose a property in Aruba - a small two-storey house in Jeburibari, a north-eastern suburb of the capital, Oranjestad. The seller valued it at $220 thousand. The choice of housing was determined not only by price, but also the proximity of location to the rocky coast, where you can dive.

The sale transaction took place without the personal participation of the client under a notarized power of attorney.

After applying for a residence permit in Aruba, the couple visited the island to undergo a medical examination.

Alexey opened a deposit in a local bank and transferred there $60 thousand. According to the terms of the program, these funds are necessary for a family with a minor child to live in Aruba.

The wait for a decision on the issuance of a residence permit lasted about 3 months.

In October, Alexey and Alla received their residence cards.

Our cooperation did not end there. The company's lawyers stay in touch with the client, helping them to resolve routine issues. We plan to obtain Dutch citizenship in 2024.

Results

The case was worked on for 4 months. Alexey and his family members received a residence permit for Aruba.