Martinique Island Taxes
1. Taxes, Fees & Costs of Ownership
The tax and fee structure for Martinique property is identical in framework to Guadeloupe — both being governed by French property and fiscal law. The full framework is described here for Martinique buyers, consistent with the Guadeloupe guide.
A. Acquisition Costs
Droits de Mutation (Registration Duties)
For resale (ancien) properties, the total droits de mutation levied in Martinique are approximately 7%–8% of the purchase price — the same rate structure as in metropolitan France and Guadeloupe, comprising departmental registration duty (taxe departementale de publicite fonciere), communal and national supplements. The notaire collects these duties from the buyer and remits them to the DGFiP.
For new-build (neuf) properties from a developer subject to French TVA (VAT at the standard rate of 20%, incorporated in the developer's selling price), the droits de mutation are reduced to approximately 2%–3% — because TVA has been applied in lieu of the full registration duty at the point of sale. This reduced rate applies to qualifying new developments and is a relevant consideration for Pinel Outre-Mer investors purchasing new-build apartment complexes.
Notarial Emoluments and Disbursements
The notaire's fees (emoluments) are set by French law on a degressive scale related to the purchase price. For a property at EUR 400,000, notarial emoluments are typically in the range of EUR 3,500–EUR 5,500. Additional disbursements (land registry searches, pre-emption notifications, administrative costs) are charged on top. The total notarial cost including emoluments and disbursements is typically 1%–2% of the purchase price, on top of the droits de mutation.
Agent's Commission
Agent immobilier commission in Martinique is typically in the range of 5%–8% of the purchase price, usually included in the FAI price. Confirm whether the displayed price is FAI or HAI before entering into any negotiation, and confirm which party is responsible for the commission payment.
Total Acquisition Cost Estimate
For a resale property in Martinique, buyers should budget approximately 10%–12% above the purchase price for all acquisition costs: droits de mutation (7%–8%), notarial emoluments and disbursements (1%–2%), and incidentals. For new-build properties with TVA, the overall quantum is similar in total (TVA incorporated in the purchase price plus reduced droits de mutation). Obtain a detailed, itemised cost estimate from your notaire at the outset.
B. Annual Ownership Costs
Taxe Fonciere
The annual taxe fonciere is levied on all property owners in Martinique — residential, commercial, and land — based on the cadastral rental value (valeur locative cadastrale) assessed by the DGFiP. The rate is set by the commune and the Collectivite Territoriale de Martinique (CTM, the territorial government). Taxe fonciere levels vary by commune and by property type — confirm the current taxe fonciere for any specific property with the agent or notaire before purchase. Martinique's communal taxe fonciere rates are broadly comparable to Guadeloupe's.
Taxe d'Habitation on Secondary Residences
For second homes (residences secondaires), taxe d'habitation remains applicable in Martinique and may be increased by communes in designated zones. Holiday properties held primarily for personal use or for seasonal rental are typically classified as secondary residences and are subject to taxe d'habitation at communal rates. Confirm the current taxe d'habitation position for any specific property with the notaire.
IFI — Impot sur la Fortune Immobiliere
French wealth tax on real property (IFI) applies to individuals whose net French real property assets exceed EUR 1.3 million — for non-residents, only French real property (including Martinique) is counted; for French fiscal residents, worldwide real property assets are counted. Rates are progressive from 0.5% to 1.5% above the threshold. Buyers with high-value Martinique property, or combined Martinique and other French property holdings approaching or exceeding the threshold, should take specific French wealth tax advice. The IFI is an annual compliance and cash-flow consideration for affected buyers that must be integrated into financial planning from the outset.
Charges de Copropriete
For any property within a copropriete (condominium), annual service charges (charges de copropriete) are payable — covering communal maintenance, syndic management fees, building insurance, and shared utilities. Review the last three years of copropriete accounts and the budget votee (approved annual budget) before purchasing any copropriete property. Assess the etat du syndic (state of the managing agent's accounts), the fonds de travaux (mandatory reserves fund for major works), and any travaux decides (approved but not yet executed works that will generate special assessments) — these are critical financial due diligence items for any copropriete purchase.
Rental Income Tax and CGT
Rental income from Martinique property is subject to French income tax — for non-residents at the applicable minimum non-resident rate on French-source income; for residents within the general income tax schedule. The LMNP regime for furnished lettings (allowing depreciation of property and furnishings against rental income) is the most tax-efficient framework for holiday rental operations in Martinique and should be structured from the outset with the assistance of a local expert-comptable. Capital gains on the sale of investment and holiday properties are subject to French CGT with social charges (approximately 36.2% combined) with a taper relief that progressively eliminates the liability over 22–30 years of holding. Primary residences are fully exempt.