Buying property in Aruba is an exciting investment, but the purchase price is only part of the picture. To protect your returns and avoid nasty surprises, you need a realistic estimate of what it costs to maintain a property on the island year after year. Here's how to think through it.
Start with the climate factor
Aruba's environment is beautiful, but it's hard on buildings and appliances. The combination of heat, salt air from the ocean, and occasional voltage fluctuations means things wear out faster than you might expect back home. Electrical equipment like air conditioners and refrigerators have an average lifespan of just 5 to 10 years in Aruba's conditions. Plan for replacement cycles accordingly, and budget for annual servicing of your AC units, they are the single biggest maintenance item in any Aruba property.
Budget for utilities every month
Utilities are a recurring cost that many first-time buyers underestimate. Typical monthly utilities for a 2–3 bedroom home run around AWG 400–1,000 (roughly USD $225–560), covering electricity, water, and internet. Air conditioning is the largest driver of electricity costs. If your property sits empty for part of the year, you'll still carry a baseline utility cost to protect the home and keep systems running.
Factor in annual property tax
The good news: Aruba's property taxes are very low. The first USD $34,000 of a property's value is tax-exempt, and beyond that the rate is USD $4 per USD $1,000 of value — so on a $250,000 property, annual land tax works out to roughly $864. Non-residents pay a tax rate of 0.6% of the property's value. Either way, this is a manageable recurring cost compared to most markets.
Don't overlook HOA and association fees
If you're buying a condo or a home in a gated community, which most foreign buyers do, association fees are a significant ongoing line item. In most communities and condominiums, a yearly or monthly association fee covers general maintenance, security, pool service, garden service, and in some cases dwelling insurance, garbage collection, and utilities like TV and internet. These fees vary widely by development, so always ask for the current fee schedule before making an offer.
Account for the lease land fee (if applicable)
Many popular residential areas in Aruba are built on government-owned lease land. The leased land title holder has the right to act as a full owner, selling, mortgaging, or negotiating rights, but pays a yearly fee for the lease rights. The lease runs for 60 years and renews through the owner’s requested extension (advisable to do the year before expiry), though the annual fee may increase at renewal. Areas like Malmok, Palm Beach, Tierra del Sol, and Esmeralda are largely built on lease land. If your property sits on lease land, add this annual fee to your ongoing cost model.
Build in a property management allowance
If you're not living on the island full-time, remote management adds real cost. A local property manager handles maintenance coordination, vendor relationships, and rental oversight if you're generating income from the property. Property maintenance in Aruba typically involves costs for utilities, optional property management services, and general upkeep. Management fees in Aruba typically run 20% of rental revenue, depending on the scope of services.
Set aside a maintenance reserve
A reliable rule of thumb used by experienced investors: set aside 1–2% of the property's purchase price per year as a maintenance reserve. On a $400,000 property, that's $4,000–$8,000 annually. In Aruba's climate, leaning toward the higher end is wise, exterior paintwork, roof maintenance, and garden upkeep need attention more frequently than in temperate climates. Because of the endless summer, plants keep growing as long as they receive water, meaning even gardens require more maintenance than most owners expect.
The bottom line
Go in with a full picture, and your investment is well-positioned for the long run.
