Greetings from Nanki at Baby Beach in Aruba, your paradise at the heart of the universe! Today, we’ll take a deep dive into the island’s economy, one of the most important aspects to consider if you plan to move to or invest in Aruba any time soon. So, sit back, relax, and let’s get started!
As you may already know, Aruba is a small island in the southern Caribbean Sea, but it is also a prosperous country and one of the most popular locations for international investors and tourists. The Aruban government actively encourages foreign investment, especially in the real estate sector, and offers a range of incentives to foreign investors, including residence permits and reduced property transfer tax rates.
Aruba has a high standard of living and is considered one of the wealthiest nations in the Caribbean. Tourism is responsible for approximately 85% of the country’s GDP. So, whether you’re considering buying a property in Aruba or simply curious about the island’s economic landscape for future investments, we’ve got you covered.
While the cost of living in Aruba can be higher than in some other Caribbean destinations, the island offers a high quality of life and a range of amenities that make it a desirable place to reside. Additionally, because Aruba enjoys a stable political environment, a strong legal system, and an adherence to international business standards, it has become an attractive destination for foreign investors.
If you’re considering moving to Aruba, you might wonder: Is living there expensive? At Nanki at Baby Beach, we consider Aruba’s real estate investment possibilities, natural beauty, and dynamic culture an appealing option for anyone seeking to live the Caribbean lifestyle, or as we like to call it: the Barefoot Luxury Experience.
The cost of living can vary depending on your lifestyle and spending habits, as well as the country you are relocating from. When comparing the cost of living in the United States to the Aruban lifestyle, here are some things to consider if you choose to invest in Aruba:
Housing
Aruba is less pricey than the United States.
Transportation
Aruba is 17.4% more pricey than the United States.
Restaurants and Dining
Aruba is 5.1% less pricey than the United States.
Groceries
Aruba is 9.9% more pricey than the United States.
Childcare
Aruba is 46.7% less pricey than the United States.
Clothing
Aruba is 26.8% more pricey than the United States.
A family of four’s estimated monthly expenses are $4,008.50 without rent.
A single person’s estimated monthly expenses are $1,112.10 without rent.
*Last Updated: March 2023. Sources: mylifeelswhere.com, numbeo.com
For those of you who want to live in Aruba, we understand that housing expenses are important to consider before making your final decision. Whether searching for a beautiful beachfront condo hotel like Nanki at Baby Beach or a more modest inland option, the Aruban real estate market has something for everyone. In addition, the island offers a track record of appreciation and return on investment.
Are you interested in investing in Aruba but don’t know where to start? You can choose from a wide range of possibilities on “One Happy Island”, from innovative energy initiatives and ground-breaking technological advancements to the growing agriculture business. These are fantastic options, but if you want to discover the greatest ways to grow your wealth and safeguard your family’s future, go with tourism and real estate investments.
Every year, around one million visitors arrive on the island. As a result, tourism contributes to more than 85% of Aruba’s revenue (approximately USD $25,000). Investing in Aruban real estate will ensure your success by providing you with a high-value asset that will pay for itself. Additionally, the Aruban government actively encourages foreign investment, particularly in the real estate sector, and offers a range of incentives to investors, including residence permits and reduced property transfer tax rates.
Aruba’s economy, strategic position, and easy access to neighboring Caribbean markets make it an attractive center for regional business and investment possibilities because of its return on investment. However, your property’s ROI may be heavily influenced by the type of estate you buy, as the location, land values, and economic structure all impact the overall worth of your asset.
To ensure that your investment is successful, we recommend researching and consulting with specialists. You will want to profit from the benefits of homeownership, which include covered housing when traveling, stunning natural surroundings, and, most importantly, a high-value physical asset that can be sold, visited, or rented.
Aruba is a tax-friendly jurisdiction with no corporate income tax and a low personal income tax rate that is collected from individuals and imposed on different sources of income, such as labor, pensions, interest, and dividends. However, you must consider a few different taxes when investing, visiting, or living in Aruba.
Individual Income Tax
Income is tax-free up to USD $16,667.
After that, the tax rate begins at 10%.
Property Tax
The annual land tax rate is 0.6% of the property’s value.
Tourist Tax
12,5% of the amount tourists pay for staying at and using hotel services or vacation rentals.
Transfer Tax
6% tax fee on the property’s value when it’s transferred between owners.
Aruba’s economy has grown steadily over the last few years, attracting many investors and boosting the overall real estate market. Its strong tourism industry, tax incentives, stable political environment, investment-friendly policies, and affordability have made the island an attractive destination for those looking to invest in the Caribbean.
If you’re one of those looking for investment opportunities in Aruba, Nanki at Baby Beach Aruba will be a great option pretty soon. Our complex will offer the benefits of a boutique condo hotel with the potential for growth in value. Want to learn more? Don’t hesitate to visit us!
Nanki at Baby Beach
Your Investment Opportunity Today
Whether you are a first-time or experienced investor, Aruba’s tourism-driven economy makes real estate a fantastic investment opportunity to consider.
If you’re thinking about investing in eco-friendly real estate in Aruba, we recommend checking out Nanki at Baby Beach. This location offers a boutique condo-hotel with all the amenities of a resort, providing great potential for value growth. Don’t wait any longer. Take advantage of this once-in-a-lifetime investment opportunity.
