Frequently Asked Questions
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St Maarten remains an attractive island for real estate investors because there are no property taxes or capital gains taxes on the Dutch side of the island. However, that does not mean that there are no taxes associated with purchasing a home or renting it out as passive income.
Depending on your circumstances, we can help you determine the best way to buy a home on the island with the least amount of tax liability.
You do not need to be a resident to purchase a property on St Maarten. In fact, even off-shore corporations can purchase property.
If you are interested in pursuing legal residency in St Maarten, depending on your nationality, there are several ways to do so.
You may purchase homeowner’s insurance locally, which covers hurricane damage, and can be roughly 1-2% of the reconstruction value of your home. There are several companies that offer homeowner’s insurance on island, some more reputable than others.
Local and regional banks offer financing to residents and non-residents alike. There are varying terms and conditions based on your individual situation. Residents must have at least 10% of the purchase price as a down payment on a property, while non-residents require a larger down payment, typically 50%. If you are a non-resident, it is usually more seamless to secure financing in your home country.
Closing costs can reach up to 6% of the purchase price. This includes a transfer tax of 4% and notary fees between 1-2%. Because there are alternative ways to structure purchasing a property on St Maarten as a resident or non-resident, the transfer fees may be avoided.
Of course! Many homeowners stay in their vacation home here on St Maarten while on island and then rent it out short-term while they are away. Other property owners choose to rent long-term. Either way, you have the option to use our property management services to look after your property so you don’t have to worry about a thing.