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Guide · 5 articles

Property and Investment in Sint Maarten

The decision with the largest consequence is usually taken first, at acquisition, and its cost only becomes visible at disposal.

Property is unusual in that the choice of holding structure is nearly free when the asset is bought and expensive or impossible to change once it is held. What the structure costs to establish matters far less than what it costs to unwind, and those two things are frequently in tension.

The same principle applies to estate planning. Arrangements made while everyone can still participate in the decisions are worth considerably more than arrangements assembled under time pressure.

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Property & Investment questions

Sint Maarten charges a transfer tax (overdrachtsbelasting) on real estate transactions. The standard rate is 4% of the transaction value for most residential and commercial property transfers. This is paid by the buyer at closing and must be factored into acquisition costs when planning a Sint Maarten property purchase.

Yes. Sint Maarten levies an annual ground tax (grondbelasting) on real property. The rate is applied to the assessed value of the property. For Penshonado residents, the qualifying property must be owned or rented — and owned property is subject to annual ground tax. CaribTax ensures your property tax obligations are met as part of ongoing compliance management.

The Penshonado program requires that you have a qualifying residence in Sint Maarten — either owned or rented. There is no strict requirement to own property, but many applicants purchase property both to satisfy the program's residency requirement and as a long-term investment in Sint Maarten's growing real estate market.

Sint Maarten does not levy a specific capital gains tax on real estate sales. However, the tax treatment of property sale proceeds can depend on how the property is held (personally vs. through a corporate entity), your residency status, and the nature of the transaction. CaribTax advises on the optimal holding structure to minimize tax exposure on property appreciation.

Yes. Sint Maarten allows foreign nationals to purchase real estate without citizenship or residency requirements. There are no restrictions on foreign property ownership. However, financing is typically limited to local bank terms which can differ significantly from North American or European mortgage markets. Most foreign buyers purchase in cash or finance through international lenders.

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