Much of Aruba's land is held on long lease rather than owned outright. For foreign buyers erfpacht is entirely workable — provided you check the details.
Eigendom is full ownership of the land and everything built on it. Erfpacht is a long lease that lets you use and build on land — often owned by the government — almost as if you were the owner, for a fixed term and against an annual ground rent (canon). A large share of Aruban land, including much of the Palm Beach, Eagle Beach and Noord areas, is issued in erfpacht. Importantly, there is no nationality restriction: Dutch, US and other foreign buyers may hold either eigendom or erfpacht in their own name.
Long leases in Aruba commonly run for 60 years and are usually renewable. The canon is typically fixed for the initial term and may be reviewed or increased on renewal, sometimes on an indexed basis. Because the remaining term and the canon shape a property's value, its financing and its resale, confirm both — and exactly how the canon is set and revised — before you commit.
Transferring erfpacht usually requires the landowner's consent, and leases can carry a building obligation — an obligation to develop within a period, on pain of termination. Before signing, verify the title and lease conditions at the Kadaster (land registry), check for encumbrances and required consents, and confirm what a transfer or new construction will need. A civil-law notary executes the deed and secures clean title; a lawyer acting for you protects your interests.
Budget for transfer tax (overdrachtsbelasting) — currently tiered, with a lower rate on the first band of value and a higher rate above it, charged on the higher of the appraised or transaction value — together with notarial and registration costs and, for erfpacht, the annual canon. A yearly property tax also applies on a tiered basis. Rates and thresholds can change, so we set out the current, full cost picture for your specific purchase before you sign.
This article is general information, not legal advice. Every situation is different, and we would be glad to review yours.
Yes — there is no nationality restriction. Foreign buyers can hold full ownership (eigendom) or long-lease land (erfpacht) in their own name.
Not inherently, but the remaining term and the canon matter to lenders and to future buyers. We check both before you commit, so there are no surprises later.
Have us check the title, the lease and the costs before you commit, so you know exactly what you are buying.
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