Aruba
Aruba is located in the far south Caribbean near Venezuela, among the "ABC" islands - together with Bonaire and Curacao. These three Dutch islands of the Netherlands Antilles are very similar in most ways. Similar tax and legal structures, weather patterns, topography, foliage and the like. Aruba, however, is far more touristed than the other two, despite being smallest and has the corresponding infrastructure - a busier airport and far more resorts, restaurants and tourist amenities. It also "feels" far more modernized and mainstream than her sister islands - Bonaire is comparitively like a ghost-town. Aruba does also seem to be blessed with better beaches than her neighbors. Access to Aruba's Reina Beatrix International Airport (AUA) includes direct flights from three continents - South America, North America and Europe (KLM from the Netherlands).
Most of the development on the island is on the southern side with the bulk of the resorts and tourist areas to the southwest. The northern coast is fairly barren and inhospitable as the very windy island becomes almost unbearably so to the north. The US Dollar is accepted everywhere and English is spoken nearly universally, though the official languages are Dutch and Papiamento (a colloquial mix of Spanish, Dutch and several other languages) and the official currency the Aruban Florin. The Florin trades at an exchange rate of 1.78 AWG to 1 US dollar. The island is fairly small at 19 miles long and 6 miles across at widest with a population of about 72,000. Tourism is the dominant industry on the island.
When last we checked, the Tax Department appraises your real estate, deducts $33,707 (a fixed deductible) from that amount and then taxes the remainder at 0.4% for annual property taxes. There is a long-lease fee for houses on leased land (from the government), usually for a term of 60 years. As is typical in the Caribbean, fees for foreigners are designed to be higher, so the transfer tax rate is 3% up to $250,000 Aruban florin; 6% above that amount, which is primarily the category of real estate purchased by foreigners. Notary fees are 1% of the transaction; 2% if there is a mortgage involved with the transaction. Title is guaranteed by the notary, so no title insurance is necessary. Stays for US citizens are limited to 3 months at a time, unless you petition the Aruban government for a longer stay.
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