Rental property Investment in Aruba & Bonaire

ARUBA

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 was obtained in 1986 upon separation from the Netherlands Antilles. The country has a democratic, elected, governement. Dutch Government is 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"

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, and 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.

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 is something you may want to discuss with an Attorney. It 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.

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.

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.

Can I watch my usual TV ?

You have two choices in Aruba: either subscribe to Direct TV Aruba and get the same channels than in the USA plus some European ones, or choose the Cable TV solution, if your house is equipped to receive the cable, and get similar channels.

 

BONAIRE

How large is Bonaire?

Bonaire is the second largest of the five Netherlands Antilles islands.
24 miles long by 3-7 miles wide, 112 sq. miles (298 sq. km);
Highest elevation is Brandaris Hill, 784 feet.

What is the political system in Bonaire?

Until December 31st, 2008, Bonaire is one of a constellation of five islands comprising the Netherlands Antilles. The Netherlands Antilles is part of the Kingdom of the Netherlands. The form of government is parliamentary democracy. Starting on January 1st, 2009, Bonaire will become a Municipality of the Netherlands. Thus, Bonaire will be part of the European Union.

Where can I get some fast facts on Bonaire?

The best places are Lonely Planet:
http://www.lonelyplanet.com/worldguide/bonaire/

The CIA U.S. Government site:
https://www.cia.gov/library/publications/the-world-factbook/geos/nt.html

The Bonaire Info Website:
http://www.infobonaire.com/index.html

We highly recommend the excellent Global Property Guide website:
http://www.globalpropertyguide.com/Caribbean/Netherlands-Antilles

How do I fly to/from Bonaire

Non-stop and direct service from the U.S. and Europe; daily service from the U.S. is provided on American Eagle via San Juan. Air Jamaica services the island with three frequencies weekly. KLM provides direct service from Amsterdam and daily non-stop service out of Amsterdam, Ecuador and Peru (South America). DCA services Miami once a week. DCA and Divi Divi service Curacao daily and Avia Air services Aruba daily. Several charter airlines serve Bonaire on a seasonal basis.

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

Yes. There are no limitations.

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

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

What is the Currency in Bonaire?

Dollars accepted, exchange at NAf. 1.78. The NA florin or guilder is a sound currency backed by gold and foreign exchange.

What is the Climate in Bonaire?

Yearly average temperature 82 F / 30 C;
Rainfall 22≤; Humidity 76.5 %;
Water temperature 80 F / 28 C;
Wind speed 15 to 20 mph.

How is the drinking water in Bonaire?

Delicious distilled and purified seawater from tap.
Prices for water consumption:
• average $ 4.78/ m3

What about Electricity?

127/120 VAC/50 cycles.
You will most often find European 220v/50c and American 110v/60c available.

Prices for electricity consumption:
• average: $ 0.128/kwh
• (Demand Charge), $ 4.163/KVA

Food supplies:

There are a few big supermarkets and a number of mini-markets on the island. Food is imported mostly from USA, Europe and Venezuela.