Tax laws Saint Barthélemy (France)
Saint Barthélemy, a French overseas collectivity in the Caribbean, has a unique taxation system tailored to its status. While it benefits from certain tax exemptions, specific taxes are levied to support local infrastructure and services.
Key Taxes in Saint Barthélemy:
Vehicle Registration Tax: An additional tax is applied to vehicle registration certificates (commonly known as "carte grise"). Instituted in 1987, this tax funds road improvements on the island. The rate is determined annually by the municipal council but cannot exceed the rate of the primary vehicle registration tax.
Real Estate Transaction Taxes:
- Registration Fees: Upon acquiring real estate, buyers pay registration fees amounting to 5% of the property's declared value. Including notary and other associated fees, the total can range between 6% and 7%.
- Capital Gains Tax: A tax on capital gains from real estate sales is imposed. The rate depends on the duration of property ownership:
- First 8 Years: 35% tax rate.
- After 8 Years: The rate decreases to 20%, with a 10% reduction for each subsequent year of ownership.
Tourist Accommodation Tax: Rentals are subject to a 5% tourist tax on the amounts paid by tenants. This tax is typically collected and remitted by rental agencies on behalf of property owners.
Income Tax Considerations:
Saint Barthélemy does not impose an income tax, wealth tax, or inheritance tax. However, tax residency is determined based on the duration of residence:
- French Tax Residency: Individuals residing in Saint Barthélemy for more than five years are considered tax residents of France.
Recent Developments:
- Tax Grouping Clarification: In October 2024, French tax authorities clarified the conditions under which companies based in Saint Barthélemy can be part of a French tax consolidation group.
Conclusion:
While Saint Barthélemy offers certain tax advantages, particularly the absence of income and inheritance taxes, it maintains specific taxes to fund local infrastructure and services. It's essential for residents and investors to understand these tax obligations and consult local tax authorities or financial advisors for personalized guidance.
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