Transfer tax
The buyer has to pay transfer tax in respect of the purchase price or the tax value, depending on which one is higher. In addition, Aruba has two rates for the transfer tax: 3% and 6%.
You pay 3% transfer tax for the purchase of a property or house with a value up to and including Afl. 250,000.00. You pay 6% transfer tax for the purchase of a property or house with a value of over Afl. 250,000.00.
Some examples:
Purchase price: Afl. 200,000.00
Tax value: Afl. 225,000.00
Buyer pays 3% transfer tax in respect of Afl. 225,000.00, being Afl. 6,750.00.
Purchase price: Afl. 225,000.00
Tax value house: Afl. 260,000.00
Buyer pays 6% transfer tax in respect of Afl. 260,000.00, being Afl. 15,600.00.
Purchase price: Afl. 300,000.00
Tax value: Afl. 200,000.00
Buyer pays 6% transfer tax in respect of Afl. 300,000.00, being Afl. 18,000.00.
The transfer tax will be placed on buyer's invoice and the notary pays it to the Collector of Taxes.