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i agree with your logic. Already they raised nonresident owners tax by 50% from .4-.6%. I own 2 Villas and it is a chink for me. I'm not sure how they would implement the surcharge and if it would be on new purchases or apply to existing owners. Amounts like 25-30,000US have been kicked around. If it happens, I'm out of here I thinkOriginally Posted by robin
I read somewhere the Aruban government is looking for only high end tourists and homeowners.Could be they’ll get their wish
I wish there was a way to form an organization of all non-resident property owners so we could ban together and make our voices heard to the government and business. Business owners on the island need to hear that if our money goes to taxes then our money to them goes away. It might be easy to organize condo complexes, but individual homeowners would be harder to locate.
I agree with you regarding the extra taxes/penalties for being an owner. There is only so much money each person has to "feed" their Aruba addiction and if you take money out of owners hand you are going to see 2 things happen. One is less money is spent out and about on the island and the other is many folks are going to sell and more will decide to rent to avoid the added headaches/costs- although I know the costs will be sent along to the tourists.
We use to banter about buying in Aruba but why bother. You can only stay 6 months at a time unless you request residency. You have to deal with property upkeep, taxes, break ins if you are not there. Its easier to rent for whenever I want to go for how long I want to go within the rules of how long I can stay. The only way I would buy is if I didn't rent it out. I would want to just go whenever and leave my stuff there. No thank you, I will rent.
We do leave all our stuff in the condo. There is an owner's closet and we put our stuff in there. Yes, there is stuff we bring back and forth-meds, a few items of clothing, my make-up(because I don't want it sitting for all that time). We rent because we want to not because we have to. I am not worried about break ins because we are on the 4th floor, it is gated with security, I don't have anything of real value and I have insurance. Yes, you have to maintain your home in Aruba but I maintain my home in NJ. The money we are spending is paying for our own place rather than us paying someone else to own their home.
When we decided on Aruba for our condo purchase property taxes was at the bottom of our list in making the choice. We were looking for a place to escape our harsh/long Upstate NY weather, so being outside the hurricane belt was our first consideration. We didn't want to take a chance on owning something far away from our home in the states that could be destroyed by something that was out of our control or pay higher home owners insurance for the same reason. Next we looked at relative safety and and crime rates, Aruba checking that box as one of the safest in the Caribbean. Next on the list was the friendliness of the locals, and for those that travel there we think that speaks for itself, as it's really tough to not feel welcomed on the island. Since we had planned to stay on the island for longer stretches of time, we also wanted a location that was a little Americanized, yet diverse in it's landscape and Aruba checked that box too. So then we spent a number of years looking at properties in different locations that fit our budget, and finally ended up where we are today. Initially we thought that we would never rent our property, but after furnishing it locally and getting a feel for how the management company functioned, we gave it a try and after two years running we've yet to have an incident and the income is a nice perk. We have enough storage to leave our belongings locked away and at our age traveling for weeks/months at a time with only a carry on makes it so much easier. At this point we have no regrets, and would do it again in a heart beat.
Now to the property tax situation, which is the topic. It is safe to say that we all pay property taxes in some fashion, whether through ownership or renting, be it thorough our primary residence, vacation home, income property or business, to name a few. Aruba in comparison to where we live in the states, is a bargain and with the tax increase is still a bargain in comparison. Where the government is making a mistake, IMHO, is that that they are charging a higher rate to the hand that feeds them and I think that it gives the wrong impression to foreign investors. It's similar to the same mind set for the booting and towing of tourists when they initiated the paid parking system...well sort of. If you want to deter the tourist from visiting or investing in a foreign country, then either piss them off or segregate them with higher fees and you'll be successful at doing so. Has all of this changed our thoughts of purchasing there...not yet. It will be interesting to see how it all plays out in the long run, just like the paid parking. Maybe the government will notice a shift in foreign investment and make adjustments and maybe they won't. All in all we're very happy with our purchase and look forward to many years of usage, and that's what it's all about...for us
OUR COUPLE'S RETREAT. THE PEARL CONDO HOTEL EAGLE BEACH. CONDO ACCOMMODATES TWO ADULTS. YOU MUST REQUEST UNIT #8. https://photos.app.goo.gl/lRquP1F4VtxyZhR42 RENTING DIRECTLY http://www.thepearlaruba.com/. SEND PM BEFORE BOOKING FOR REFERRAL.
your words........... "Where the government is making a mistake, IMHO, is that that they are charging a higher rate to the hand that feeds them and I think that it gives the wrong impression to foreign investors. It's similar to the same mind set for the booting and towing of tourists when they initiated the paid parking system...well sort of. If you want to deter the tourist from visiting or investing in a foreign country, then either piss them off or segregate them with higher fees and you'll be successful at doing so."
EXACTLY!!!!!!
Well said.
This is perfectly said. I could have written myself(but NJ not NY), but you did a much better job. One thing I should have before, the value of our condo would be in the 6% tax rate whether a resident or a non resident owned it.
When we decided on Aruba for our condo purchase property taxes was at the bottom of our list in making the choice. We were looking for a place to escape our harsh/long Upstate NY weather, so being outside the hurricane belt was our first consideration. We didn't want to take a chance on owning something far away from our home in the states that could be destroyed by something that was out of our control or pay higher home owners insurance for the same reason. Next we looked at relative safety and and crime rates, Aruba checking that box as one of the safest in the Caribbean. Next on the list was the friendliness of the locals, and for those that travel there we think that speaks for itself, as it's really tough to not feel welcomed on the island. Since we had planned to stay on the island for longer stretches of time, we also wanted a location that was a little Americanized, yet diverse in it's landscape and Aruba checked that box too. So then we spent a number of years looking at properties in different locations that fit our budget, and finally ended up where we are today. Initially we thought that we would never rent our property, but after furnishing it locally and getting a feel for how the management company functioned, we gave it a try and after two years running we've yet to have an incident and the income is a nice perk. We have enough storage to leave our belongings locked away and at our age traveling for weeks/months at a time with only a carry on makes it so much easier. At this point we have no regrets, and would do it again in a heart beat.
Now to the property tax situation, which is the topic. It is safe to say that we all pay property taxes in some fashion, whether through ownership or renting, be it thorough our primary residence, vacation home, income property or business, to name a few. Aruba in comparison to where we live in the states, is a bargain and with the tax increase is still a bargain in comparison. Where the government is making a mistake, IMHO, is that that they are charging a higher rate to the hand that feeds them and I think that it gives the wrong impression to foreign investors. It's similar to the same mind set for the booting and towing of tourists when they initiated the paid parking system...well sort of. If you want to deter the tourist from visiting or investing in a foreign country, then either piss them off or segregate them with higher fees and you'll be successful at doing so. Has all of this changed our thoughts of purchasing there...not yet. It will be interesting to see how it all plays out in the long run, just like the paid parking. Maybe the government will notice a shift in foreign investment and make adjustments and maybe they won't. All in all we're very happy with our purchase and look forward to many years of usage, and that's what it's all about...for us
True, but without looking back and the new tax law, would you still have gotten the exemption? Sorry, just me being on the lazy side tonight.
OUR COUPLE'S RETREAT. THE PEARL CONDO HOTEL EAGLE BEACH. CONDO ACCOMMODATES TWO ADULTS. YOU MUST REQUEST UNIT #8. https://photos.app.goo.gl/lRquP1F4VtxyZhR42 RENTING DIRECTLY http://www.thepearlaruba.com/. SEND PM BEFORE BOOKING FOR REFERRAL.
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