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BUYING PROCESS

Buying Property in Aruba as a US citizen: The 2026 Guide

Yes, Americans can buy on Aruba: no restrictions, no residency required. Here's the whole process: costs, taxes, land lease, and the mistakes we see US buyers make.

By Jakob Jakubov, every winter on Aruba since 2021 · Updated August 2026 · 14 min read

Can Americans actually buy property in Aruba?

Short answer: yes, and it's easier than most people expect. Aruba, a constituent country of the Netherlands, places no restrictions on foreign buyers. You don't need residency, a local partner, or a special permit. You can hold the property in your own name, rent it out, and sell it whenever you like.

Roughly speaking, you buy under the same rules as an Aruban. The differences that DO matter are practical, not legal: how you'll finance it, what the land under the house actually is, and which taxes follow you home to the IRS. That's what the rest of this guide is about.

What buying actually costs

Beyond the price you agree with the seller, the real number to plan around is closing costs: mostly transfer tax, the notary's fee, and registration. Here's the shape of it:

Ranges based on the official notary scale: we verify these every winter. Full tier-by-tier breakdown in taxes & closing costs.

A couple of things worth knowing as an American. The transfer tax is tiered, so a $300k condo and an $800k villa don't pay the same percentage. The notary's fee isn't negotiated the way you might haggle a US title company: it follows a published scale. And unlike a lot of US closings, there's no army of separate line items; the notary consolidates most of it.

Freehold vs. land lease

This is the one concept that trips up every US buyer, because it doesn't exist at home.

In the States, when you buy a house, you buy the land under it, full stop. In Aruba there are two possibilities. Freehold (eigendom) is what you're used to: you own the land outright, permanently. Land lease (erfpacht) means the government owns the underlying land and grants you a long, renewable lease on it, commonly 60 years, while you fully own the building on top. You pay a small annual ground fee, the canon.

Here's what matters. A land-lease property is not a lesser property, and it's everywhere on the island, including some of the best addresses. But when you buy one, you're really buying two things: the building, and the remaining term on the lease. A place with 55 years left and a modest fee is a non-event. A place with 8 years left and no clarity on renewal is a very different conversation, and it should show up in the price. We break the whole thing down, including how renewal works, in the freehold vs. land lease guide.

Land lease isn't a red flag. An expiring land lease is.

Taxes you'll pay (Aruba and the IRS)

Two tax systems touch your Aruba property as an American, and it pays to keep them straight.

In Aruba. At purchase, the big one is the transfer tax already covered above. After that, you'll owe a modest annual property tax (grondbelasting) on assessed value above a threshold: think a fraction of a percent, not the punchy rates some US counties charge. If you rent the place out, Aruba taxes the rental income; the effective rate depends on how the property is held and how much it earns. None of this is dramatic, but all of it belongs in your yield math if you're buying to rent. The detail sits in taxes & closing costs.

Back in the US. This is the part US buyers forget. As a US citizen, you're taxed on your worldwide income, so rental income from your Aruba condo is reportable to the IRS, even though it's earned abroad and already taxed in Aruba. The saving grace is the foreign tax credit: tax you've paid in Aruba is generally creditable against your US bill, so you're usually not taxed twice on the same dollar. If you sell at a gain, that gain is reportable too. And depending on how you hold or finance the property, there can be additional foreign-account reporting (think FBAR/FATCA territory) to be aware of.

The honest advice: this guide is not tax advice, and the interaction between Aruban and US rules is exactly where a good cross-border CPA earns their fee. Talk to a US tax advisor who actually handles foreign real estate before you close, not after.

Financing: Your real options

Let's kill the most common assumption first: your US bank will not write a mortgage on a property in Aruba. Fannie and Freddie don't reach the Caribbean, and a domestic lender has no way to secure a lien on Aruban land. So a US buyer really has three routes.

1. Cash. The simplest and, frankly, the most common path for foreign purchases here. No financing contingency, a cleaner offer, and it sidesteps the whole cross-border-lending headache. If you have the liquidity, it's the least friction.

2. A local Aruban mortgage. A few Aruban banks do lend to non-residents. Expect a lower loan-to-value than you'd get at home (they want more of your own money in the deal), stricter documentation of your income, and a rate set to the local market rather than US rates. It's real, but it's slower and more conservative than a US closing, plan for extra weeks.

3. Borrow against a home in the US. This is the quiet favorite of a lot of American buyers. Take a HELOC or a cash-out refinance on your US primary residence, then walk into the Aruba purchase as a cash buyer. You get US-style rates and a lender you already know, and the Aruba side stays simple. The trade-off is that you're putting your US home on the line, so run the numbers with clear eyes.

Which of these is right depends on your rate environment, your liquidity, and your appetite. We compare all three in detail, with typical LTVs and what local banks actually ask of foreigners, in financing as a foreigner.

The buying process, step by step

The mechanics are more orderly than a US closing, mostly because a single government-appointed notary runs the legal side for both parties, rather than each side lawyering up. Here's the sequence:

1. Make an offer. Usually through an agent. Price, and any conditions (financing, inspection), go in writing.
2. Sign the purchase agreement. Once the seller accepts, you both sign, and a deposit, often ~10%, is paid into the notary's escrow, not to the seller.
3. Due diligence. The notary verifies clean title, confirms the land type (freehold or land lease, and how many years remain), and checks the property is free of mortgages, liens, and unpaid taxes.
4. Prepare the deed of transfer (akte van levering). The notary drafts the legal transfer and the settlement statement.
5. Sign the deed. You (or someone with power of attorney, if you can't fly back) sign at the notary's office. Your funds are already in escrow.
6. Registration. The notary registers the transfer with the land registry (Kadaster), making you the legal owner of record.
7. Keys. Funds release to the seller, and the property is yours.

Realistically, 2–3 months from accepted offer to keys, paced almost entirely by the notary's due diligence. The full timeline with time estimates for each step is in the notary process guide.

The 5 mistakes US buyers make

1. Budgeting the sticker price only. Closing costs of ~4–6% are not optional. Build them in from the first offer.
2. Falling for a place before checking the land. Ask "freehold or land lease, and how many years left?" on viewing day, not at the notary. It changes value and resale.
3. Assuming a US mortgage will work. It won't. Sort your financing route before you make an offer, or your "cash offer" isn't really cash.
4. Forgetting the IRS. Rental income and any sale gain are reportable in the US. Line up a cross-border CPA early so it's a checkbox, not a scramble.
5. Modeling rental returns on vibes. If the plan is short-term rental income near Palm Beach or Eagle Beach, use real occupancy, real rules, and real taxes. Start with renting out your property and, if you're leaning toward a condo, the condo buyer's guide.