Two taxes attach to Sint Maarten property: one on the way in, and one every year you hold it.
Everything updates as you type. Nothing is sent anywhere.
Transfer tax is a one-off charge on acquisition, levied on the purchase price or the assessed value, whichever is higher. Land tax then runs annually on the assessed value for as long as you hold the property. The first-year cost of a purchase therefore combines both, which is worth modelling before you commit.
On a property bought for USD 500,000 with an assessed value of USD 350,000, transfer tax is charged on the higher of the two, so 4% of 500,000 is USD 20,000 payable on acquisition. Annual land tax at an indicative 0.3% of the assessed value adds USD 1,050 for that year and every year afterwards. The first year therefore carries USD 21,050 of tax before any consideration of income. On a property let seasonally from November to April, that annual land tax is carried across all twelve months regardless of whether the unit earned anything in September.
The purchase price or the assessed value, whichever is higher. A below-market price does not reduce the charge below the assessed value.
CaribTax's published real estate guidance notes no capital gains tax in Sint Maarten. How a disposal is treated still depends on whether the activity amounts to trading rather than passive holding, which is a question of conduct.
It is taxable, and the treatment depends on your residency status and on whether the property is in Sint Maarten or abroad. Penshonado treatment of foreign and local rental income differs, which catches people out.
They are the indicative figures CaribTax publishes, and land tax in particular is assessed on a valuation rather than the price you paid. Both rates are editable above so you can model your actual assessment.
A short introductory call, at no cost. Bring your figures and we will tell you what actually applies.
Book a Free Introductory Call