Taxes in SXM

Taxes

Taxes in SXM

Sint Maarten

There are 3 main taxes in St Maarten.

1. Wage tax
2. Turnover tax
3. Profit tax
4. Real estate tax (not currently enforced)

Capital gains tax does not apply to individuals.
To avoid the capital gain tax you need to buy real estate in your name.
It is possible to buy real estate with a company, for example an LLC from USA.
However, you will have to pay the profit tax when you sell.
There are other ways to title your property.
A Private Fund Foundations is an example.
This entity can be established by the Sint Maarten Notary,
The cost is approximately $ 1500 to $ 2000 USD.
Another way to buy property is with an NV (company).
This is a resident’s company that can also be established by the notary in SXM.

Saint Martin

On the French side, there is property tax and capital gain tax totaling approximately 34%.
Property tax is reasonable.
For example, for a villa in the French Lowlands with a plot of land of 2,5 acres and 2 houses, you could pay $5000 to $6000 per year.
Capital gains tax is not applicable if the property is your primary residence.
Typically, Americans, Canadians and European buyers, purchase properties in St Martin.
French companies like SCI ( Societe’ Commercial Immobilier) are used for this purpose.
This company can be established by your Notary, Lawyer or Accountant on the French side of the island.
Fiducial French Accountants
French Saint Martin real estate laws are a little bit different from the Dutch side.
The French notary or a lawyer can help you choose the best way to title your property.
This will be based on tax status in your country of origin.