Transfer tax Aruba

Published on June 25, 2025

Real estate can be transferred legally and beneficially, or by selling the shares in a company that owns the real estate. If only the beneficial ownership is transferred, as of January 1, 2023, or shares in a real estate company are sold, this constitutes a taxable event for transfer tax purposes.

Transfer of economic ownership: Transferring economic ownership of real estate will be subject to transfer tax (3% up to AWG 250,000 and 6% on the amount exceeding AWG 250,000). An economic ownership already exists if the slightest change in value is attributable to someone else than the legal owner, except signing a purchase deed, purchase option or having a right to obtain the title. The seller of the economic ownership, if not by notarial deed, needs to notify the tax inspector within two weeks after obtaining the economic ownership of this event. If the notification is late, a penalty with a maximum of AWG 100,000, or, if the value of the property is higher than AWG 100,000, a maximum of 10% of that value, can be imposed.

Transfer of shares in real estate companies: Transferring shares of real estate companies will be subject to transfer tax (3% up to AWG 250,000 and 6% on the amount exceeding AWG 250,000). A real estate company is present if the companies’ assets consist for at least 30% of real estate located in Aruba (“ownership criterion”). Furthermore, the real estate should, in whole or primarily (in Dutch: “geheel of hoofdzakelijk”, i.e. 70% or more), contribute to generating, selling or exploiting the real estate (“function criterion”). Real estate includes the actual property, but also fictitious real estate such as shares in other real estate companies, economic ownership and other rights attached to the real estate or shares. The value of the shares equals at least the registered value of the Aruba properties of the real estate company. The seller of the shares, if not by notarial deed, needs to notify the tax inspector within two weeks after obtaining the economic ownership of this event. If the notification is late, a penalty with a maximum of AWG 100,000, or, if the value of the property is higher than AWG 100,000, a maximum penalty of 10% of that value can be imposed.
The beneficial ownership or shares do not have to be transferred via a notary but can be transferred via an agreement. If the legal (and beneficial) ownership of real estate is transferred, this has to be done via notarial deed.

Upon the legal transfer of the ownership of real estate, transfer tax is due which will automatically be withheld from the buyer and paid by the notary at the tax authorities. The taxable base is the highest of (i) the purchase price or (ii) the registered value at the tax authorities.

If the real estate is transferred because of an inheritance, no transfer tax is due;
For the purchase of all real estate, the rate is set on 3% over the first AWG 250,000 and 6% over the remainder.

Want to know more about this matter and what it can mean for you and your business? Please do not hesitate to contact us. We look forward to helping you.