St Maarten (Dutch)

Property ownership in Dutch St. Maarten is a relatively simple process and is open to both residents and non-residents alike. As in all jurisdictions around the world, establishing your identity, whether personally or corporately in order to execute the purchase transaction is critical.

The conveyance of real property in St. Maarten is accomplished using the services of a Civil Law Notary under the European system of title registry. The notary is charged with ensuring the conveyance protects the buyer by delivering free and clear ownership and that the buyer is aware of all relevant conditions affecting the property, such as restrictive covenants and easements.

Deed transfers in St. Maarten can take the form of a fee simple transfer, government long lease or private long lease. Each carries full ownership rights. Closing costs are typically for the account of the purchaser and are generally below 6% including government transfer tax and Notary fees.

 

When the Purchase and Sale Agreement is properly executed and all conditions waived, the Notary will proceed to examine title to determine rightful ownership, the chain of ownership and any liens, mortgages or other encumbrances affecting the property. Once satisfied, he will prepare the Deed of Conveyance and set a date for closing. For the benefit of non-residents, the Notary can also prepare Powers of Attorney if the party to the transaction is unable to attend the closing.

St. Maartens generous tax structure provides significant incentives for would-be property owners. The absence of property and capital gains taxes, together with the ability for offshore holding companies to invest directly on the island and attractive financing options, combine to create an opportunistic investment climate.

St Martin (French)

On French St. Martin, real estate transactions are always handled by the Notaire (Notary). The Notaire is responsible for preparing the final deed and obtaining all relevant searches about the property. The Notaire must check that each party has full capacity or the right either to sell or purchase property. The Notaire is responsible, by law, to both parties and is obligated to perform a proper title search to insure a clear title transfer. A personal attorney is not necessary.

Other considerations:

Land lease and fee simple deeds are available.

Approximately 8% transfer fees; which includes Notary and land transfer taxes.

Annual property taxes are applicable

Property sales are subject to a 33 1/2% capital gains tax unless held long term.

Purchases can be made in offshore companies, however, there are restrictions.

Land speculation is limited as construction must take place within certain time frames.

Obtaining building permits and negotiating zoning laws require some local knowledge.

Important Note: Although French St Martin is a Euro based economy, US dollar denominated property offers are widely accepted