St Martin / Sint Maarten Island Taxes

1. Taxes, Fees & Costs of Ownership

A. French Side Acquisition Costs

Droits de Mutation

The primary acquisition tax on the French side — confirm the current Saint-Martin COM rate with your notaire. As a general reference for budgeting, rates for resale properties on the French side have historically been in the range of 6%–8%, but the COM's fiscal autonomy means the local rate must be specifically confirmed. New-build properties may attract a lower rate with TVA (French VAT at 20%) applicable instead.

Notarial Emoluments and Disbursements

The notaire's emoluments are regulated on the standard French degressive scale — typically 1%–2% of the purchase price for mid-range transactions, with disbursements (searches, pre-emption notifications, registration fees) charged additionally. Obtain a complete, itemised notarial cost estimate before commitment.

Agent's Commission

Real estate agent commission on the French side is typically 5%–7% of the purchase price — in the French system, commission is commonly included in the advertised price (prix FAI — frais d'agence inclus) and paid to the agency by the seller. Confirm the commission structure and who pays it for any specific transaction.

French Side Total Acquisition Cost

Budget approximately 8%–12% of the purchase price for total acquisition costs on the French side (droits de mutation, notarial emoluments and disbursements, and incidentals) for a standard resale property. Agent commission may be additional depending on the structure.

B. Dutch Side Acquisition Costs

Transfer Tax

Sint Maarten's transfer tax is the primary acquisition cost — confirm the current rate with a local notary. As a general reference, transfer tax has been in the range of 4%–6% of the purchase price — confirm the current applicable rate before commitment.

Notary Fees

The Sint Maarten notary charges fees for the notarial deed and registration services — typically 1%–2% of the purchase price. Obtain an itemised cost estimate from the notary before commitment.

Attorney Fees

Your independent attorney's fees for due diligence and buyer-side representation — typically 1%–1.5% of the purchase price for standard residential transactions.

Dutch Side Total Acquisition Cost

Budget approximately 6%–10% of the purchase price for total acquisition costs on the Dutch side (transfer tax, notary fees, attorney fees, and incidentals). This is generally lower than the French side acquisition cost structure.

C. Annual Ownership Costs — Both Sides

No Personal Income Tax — Both Sides

Neither Saint-Martin nor Sint Maarten levies personal income tax on individuals. Rental income, employment income, and other personal income are not subject to local income tax on either side. This is the defining fiscal advantage of the island for property owners — no local tax on rental returns during the holding period. Non-resident owners must assess their home-country income tax obligations on rental income from St Martin/Sint Maarten property.

No Capital Gains Tax — Both Sides

Neither side levies CGT on real property disposals. All appreciation accrues to the owner free of local CGT on sale from both French and Dutch sides. Non-resident owners must assess home-country CGT obligations on gains from property disposals.

No IFI (French Wealth Tax) — French Side

As in St Barts, the French IFI (Impot sur la Fortune Immobiliere) does not apply in Saint-Martin due to the COM's fiscal autonomy. French-resident buyers approaching the IFI threshold should note that Saint-Martin property does not contribute to the IFI asset base in the same way as DOM property — specific confirmation with a French tax specialist is required for any buyer with significant French property holdings.

Turnover Tax on Rentals — Dutch Side

Sint Maarten levies a Turnover Tax (TOT) on commercial business revenue, which may include short-term rental income above defined thresholds. The applicable rate and the threshold for rental property registration and compliance should be confirmed with a Sint Maarten tax adviser before commencing any rental operation. This is not equivalent to income tax or CGT — it is a levy on gross rental turnover for commercial operations.

Annual Land Tax / Property Tax

Both sides levy annual property-related charges. The French side has its own local property tax equivalent (confirm with a local fiscal adviser — the metropolitan French taxe fonciere does not automatically apply given COM status, and the local equivalent charges may differ). The Dutch side levies land tax. Confirm the current annual charge for any specific property before purchase.

Insurance — Hurricane Irma Context

Windstorm and hurricane insurance is absolutely non-negotiable on St Martin/Sint Maarten — Irma demonstrated with catastrophic clarity the island's exposure. Buildings, contents, and rental liability insurance at adequate replacement values are essential. Premium pricing reflects the island's risk profile. For post-Irma rebuilt properties to modern hurricane-resistant standards, insurance may be more readily available and premiums more reasonable than for older or inadequately repaired structures. Confirm insurance availability and premium costs for any specific property before purchase — some insurers have restricted coverage or increased premiums significantly following Irma.

D. US Citizen Warning — Both Sides

As stated in the St Barts guide, US citizens and US persons remain subject to US federal income tax on worldwide income (including rental income from St Martin/Sint Maarten property), US federal CGT on worldwide gains (including property sale gains), and US federal estate tax on worldwide assets — regardless of the no-income-tax, no-CGT environment of either the French or Dutch side. St Martin/Sint Maarten's local tax advantages do not override US tax obligations in any way. US buyers must engage a US-qualified tax adviser specialising in international real estate before any purchase.