Saint Barthélémy : an island with a dream tax
The beach, the sun, and ... no tax!
Dream Taxation in Saint Barthélemy, its privileged tax status is framed by the organic law of 2007.
(Source text and local partner photo) For this reason, people residing in SAINT BARTHELEMY for more than 5 years are exempt from income tax and wealth tax (for property located in St Barthelemy), they are not subject to VAT or other taxes and they do not pay inheritance tax for property situated on the island and for the benefit of heirs residing in a country without inheritance tax.
Rentals also benefit from a favorable tax regime and are not very taxed due to depreciation.
Example: if an Italian buys a villa in SAINT BARTHELEMY, the rentals he will cash will not (or little) tax in the first 30 to 40 years due to the importance of depreciation.
The island of SAINT BARTHELEMY remains however attached to the French legislation for certain points as for the social contributions (CSG-CRDS) which remain due.
On this small island in the French West Indies, which covers just 21 km2 -24 if we count the islets – there is no other industrial activity.
If INSEE counts some 5,000 local “companies”, these are half self-entrepreneurs.
How to explain the craze for this small island?
What draws, beyond the white sandy beaches, Johnny and Læticia, Leonardo DiCaprio, Rupert Murdoch, Paul McCartney, Puff Daddy, Courteney Cox or Roman Abramovitch, owner of a sublime property above most beautiful beach, that of Governor?
This small territory offers, in the year or the week, happiness “à la française”.
French, the island has not always been. Discovered by Christopher Columbus in 1493, who lent him the name of his brother, it was bought by France to the Order of Malta in the seventeenth century, was sold by Louis XVI to King Gustav III of Sweden in the eighteenth, then became French again at the end of the nineteenth, when it was attached to Guadeloupe.
Today, despite some street names and its capital, Gustavia, reminiscent of the Swedish period, St. Barth, is France.
In St. Barts, there are almost no thieves or criminals, idyllic weather, very pretty beaches, luxury cars, houses that respect the beauty of the island.
That’s not all: no mass tourism, restaurants offering international or Caribbean cuisine and, for the amateurs, French gastronomy, hotels and luxury shops on every street corner …
Only those who have resided for more than five years on the island benefit from this ultra-favorable regime that allows them to escape income tax and wealth tax, VAT and death duties.
Impossible to settle opportunely.
Then the island is well managed. It is also managed like a company.
Its operating budget is close to 50 million euros, of which 30% is devoted to the payroll of the Collectivité.
In Saint-Barthélemy, real estate is definitely at the center of everything. This is the first industry. Building land is rare and expensive (1000 to 5000 euros per square meter). Well located villas are trading between 5 and 10 million euros.
A small room in a backyard is renting 2000 euros per month.
Want to know more about real estate investing in sT bARTH ?
Feel free to contact us, 21 home real estate agency, helena pires and their team will be happy to meet your needs and accompany you in your real estate project from the start to the end.
Do you want to buy a property in St Barth?
Contact us on 0033 (0) 624 713 315 or via e-mail