How large is Aruba?

Aruba is about 193 square km in size, slightly larger than Washington DC. The
population is slightly above 100,000.

What is the political system in Aruba?

Member country of the Kingdom of the Netherlands; full autonomy in internal

affairs obtained in 1986 upon separation from the Netherlands Antilles; Dutch
Government responsible for defense and foreign affairs.

Where can I get some fast facts on Aruba?

The best places are Lonely Planet:

(http://www.lonelyplanet.com/worldguide/aruba/)
The CIA U.S. Government site:
(https://www.cia.gov/library/publications/the-world-factbook/geos/aa.html)
The Aruba Tourism Office:
(http://www.aruba.com/),
We highly recommend the excellent Global Property Guide website:
(http://www.globalpropertyguide.com/Caribbean/Aruba)
And our Guide: "7 Excellent Reasons to Real Estate Invest in Aruba Today"
(http://www.rentalpropertyinvestment.info/7_excellent_reasons_to_real_estate_inv
est_in_aruba_today.pdf)

Rental Property Investment – Casibari 73 – Aruba

(Cell) +297 744 2030 – (Fax) +297 588 5684
email: Patrick LeGranche Web: Rental Property Investment
 How do I fly to/from Aruba

From Europe you have a KLM direct flight from Amsterdam 4 times a week.
From the USA you have direct flights from many cities, including: New York,
Washington, Newark, Miami, Boston, Charlotte
From Canada you have a direct flight from Toronto.

Can a non-Aruba citizen own real estate in Aruba?

Yes. There are no limitations.

Should I retain an attorney to purchase real estate in Aruba?

You may, but this is not mandatory as all real estate purchases go through a
Government Licensed Notaris which guaranties the transaction and the legitimacy
of the Title.

Does your company recommend any specific attorney?

We cannot suggest a specific attorney, but you can find many of them on Aruba
Yellow Pages: http://www.yellowpages-
aruba.com/Categories/Legal+%26+Financial/Attorneys/

When I purchase real estate, should I put it in my own name or start a

company?

This might depend upon your legal and tax situation, but typically people purchase
real estate under their own name in Aruba.

When I purchase real estate, do I get a title or some other legal proof of
ownership?

Yes, the Notaris will deliver you a "Levering" which is your title to the real estate
property. The document will be in Dutch, but the Notaris will explain it to you in
English at the signature time.

Are there real estate transfer taxes I need to consider in my purchase?

Yes, the transfer tax is 3% of the price if lower than $141,000, then it is 6%. There
are also between 0.8 and 3% misc. fees, depending on the price of your property.

Rental Property Investment – Casibari 73 – Aruba

(Cell) +297 744 2030 – (Fax) +297 588 5684
email: Patrick LeGranche Web: Rental Property Investment
 Are there property taxes in the Aruba?

Yes, there are property taxes. Owners have to pay real estate property tax each
year. The Tax Department appraises the value of your property (your house and
land) deducts $33,707.00 (fixed deductible) from the appraised value, and taxes 0
.4 % on the balance.

Example:
House appraised by Tax Department at: US $150,000
Deductible: US $33,707
Total US $116,293
0.4% of Total: US $465.17 (per year)

Do I need to pay income taxes in Aruba?

Typically no, unless you become a resident.

Are there Capital Gain Taxes on Properties in Aruba?

No, and that makes a huge difference with other Caribbean Islands like Dominican
Rep. (30%), or Martinique (6.45%)

Can I insure my house in Aruba?

There are many types of property insurance. However typical comprehensive

property insurance that covers explosion, earthquake, flooding, fire, riot/ malicious
damage, foreign object, etc. costs yearly 0.37% of the reconstruction value.

How much do I have to calculate for water, electricity etc.?

Water: WEB NV is the only water provider on the Island. All the industrial and
potable water produced by WEB NV, the 2nd world’s largest desalination plant, is
from the seawater. The quality of Aruba’s drinking water is highly regarded and
very safe to drink direct from the faucet. The average consumption per month
according to WEB NV is $82.00. Houses with extensive landscaping could expect
water bills around $170. With an average swimming pool of 30 m3, the monthly
consumption of water in dollars is estimated at $250.00.

Electricity: WEB NV also produces electricity, which is distributed by ELMAR

NV. Power is supplied to all homes at 60-Hertz frequency and at 110 volts, just like
in the United States. Power outages are very rare, unlike on other Caribbean
islands. The average consumption of power per month is $130.00. For a house with
3 A/C units the average is around $250.00.
Rental Property Investment – Casibari 73 – Aruba
(Cell) +297 744 2030 – (Fax) +297 588 5684
email: Patrick LeGranche Web: Rental Property Investment
 What about telephone quality and costs on the island?

Telecommunication services are provided by SETAR NV, a government owned

company. The telecommunication infrastructure is advanced and sophisticated.
SETAR provides all telecommunication services on an exclusive basis, except for
cellular services, which are also provided by Aruba Digicel as well. The average
expenditure per month per household on telecommunication services is $90.00. If
you make extensive use of international line and/or internet services you could
expect expenditure to reach around $250.00 per month.

What about an internet connection?

SETAR provides fast internet services through a DSL (ASDL) account. Unlimited
use is at $55 per month.

Patrick LeGranche, Owner

RentalPropertyInvestment.info
June 2008

Rental Property Investment – Casibari 73 – Aruba

(Cell) +297 744 2030 – (Fax) +297 588 5684
email: Patrick LeGranche Web: Rental Property Investment