Answered by: Arun Jagtiani
Q: Do you have to be a resident, or do you need to obtain a special permit to purchase property in St. Maarten ?
A: NO. Anyone can purchase property on either side of the island. There are no special laws or requirments that apply to foreigners who own property on St. Maarten / St. Martin.
Q: What kind of deed will I get ?
A: There are three types of deeds in St. Maarten:
- Fee Simple
- Government Long Lease
- Private Long Lease
All deeds are transferred at an appointed notary, and registered at the Kadaster Office (island registry)
Q: What is the normal closing procedure, and do I need a lawyer?
A: Title is transferred through the office of an appointed notary. All notaries on island are of legal backgrounds and are appointed by the Queen of Holland. They serve as a neutral party between buyer and seller. The notary is also responsible for making sure title is transferred free and clear.
It is not necessary to hire an attorney for closing, and there is no need for Title Insurance either!
Closing cost is approximately 5% on the Dutch side and between 9 and 11% on the French Side.
Q: Do I have to be on island for the closing?
A: No you can assign power of attorney for someone to sign on you behalf, this applies to both buyer and seller.
Q: Do I have to buy the property in my name?
A: On the Dutch side it is possible to purchase property in the name of a local corporation, or an offshore corporation.
Q: How long does it take for a closing to happen?
A: If bank financing is involved it could take between 4 – 6 weeks, otherwise in most cases closings can take place within a week or two.
Q: What about taxes ?
A: On the Dutch side you are only subject to closing costs, which include all transfer fees, title search, and legal fees. THERE ARE NO ANNUAL PROPERTY TAXES, AND NO CAPITAL GAINS TAXES!!! However if you are using your property for rental purposes you are subject to income and profit tax.
On the French side there are annual taxes and capital gains taxes.
Q: Is financing available ?
A: Yes, most banks on island will offer financing to foreigners. Typically they will finance between 50 to 65% of the market value.
Q: Can I get Hurricane Insurance ?
A: Yes, you can get full coverage. A typical policy that covers you in almost every circumstance will cost you between 1 – 2 % of reconstruction cost.
Q: Can I rent my property when I am not using it?
A: Yes, there is a good market for vacation rentals. Most rentals range from about $1,000 a week to well over $10,000 per week. The peak season for rentals is between December 15 to April 15. Sometimes its possible to purchase a property which already has a track record of rental history.
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