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Thread: Do I pay income tax on the monies used to puchase a house?

  1. #1
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    Do I pay income tax on the monies used to puchase a house?

    Hi Everyone,

    I searched and searched but didn't find an answer to this. If I move do I pay income tax on the monies I use to buy the house? Also when I sell, as an expat (possibly citizen by then) what is involved with selling?

    If anyone can help it would so much help me.

    Thanks,
    Dave

  2. #2
    Aruba since 1979
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    Andrea J.'s Avatar
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    good question
    i hope someone can answer appropriately, but i do suggest contacting a lawyer or accountant on aruba.

    welcome to the forum

  3. #3
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    There is no INCOME tax on BUYING a house in Aruba. There is a 6.0% sales tax (overdrachtsbelasting). We purchased a house in AUA about a year ago. In general, closing costs totaled about 7-7.5% to include the Sales Tax.

    Regarding SELLING a Arubian house, you should probably contact a real estate broker or accountant. There are several brokers on the island that can give you general information. When selling the house, I would presume that you'll be taxed on the GAIN, which in the US is essentially: sale price - cost of sale - purchase price + cost of purchase. If you make any capital improvements (e.g. add a swimming pool) it (again by US standards) are added to the cost "basis" of the rpoperty and thus reduces your capital gain. I am not certain if Arubian tax law follows the same general rule.

  4. #4
    Aruba since 1979
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    Andrea J.'s Avatar
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    very old thread.
    Quote Originally Posted by jfltdoc View Post
    There is no INCOME tax on BUYING a house in Aruba. There is a 6.0% sales tax (overdrachtsbelasting). We purchased a house in AUA about a year ago. In general, closing costs totaled about 7-7.5% to include the Sales Tax.

    Regarding SELLING a Arubian house, you should probably contact a real estate broker or accountant. There are several brokers on the island that can give you general information. When selling the house, I would presume that you'll be taxed on the GAIN, which in the US is essentially: sale price - cost of sale - purchase price + cost of purchase. If you make any capital improvements (e.g. add a swimming pool) it (again by US standards) are added to the cost "basis" of the rpoperty and thus reduces your capital gain. I am not certain if Arubian tax law follows the same general rule.

  5. #5
    Senior Member Aruba4ever's Avatar
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    It is a very old thread indeed. The only thing I know about buying, is I believe you will have to pay taxes on the money you spend on the island to support yourself while living there- consider it some type of income tax of sorts.

  6. #6
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    Feb 2016
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    Is there more current information or has it changed?

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