Capital Gains Tax on Sint Maarten Property: MP Proposes 4.5% on Sales, Finance Minister Says It Is Not Yet Assessed

Sint Maarten has no capital gains tax on property sales today, and that is now being questioned in Parliament. During the debate on the 2027 draft budget, MP Raeyhon Peterson asked the Finance Minister to examine a capital gains tax of at least 4.5% on property sales, collected by the notary at closing. On November 9, Finance Minister Marinka Gumbs told Parliament the idea has not yet been assessed.

What happened

• November 4: Peterson (Party for Progress) raised the tax during the budget debate, SMN News reported. He suggested notaries collect it at the transfer and pass it on to government, and said he had checked that this was feasible. He also questioned how short-term rental income is taxed and recalled a condominium tax discussed around 2010 to 2015 that never went forward.

• His reasoning: "It's time those who don't live here, but make millions in passive income off of us, begin to pay their fair share." He illustrated it with a hypothetical condo bought by one offshore company for $800,000 and sold to another for $1.5 million. SMN noted this was not a documented transaction.

• November 9: Gumbs answered in Parliament that the 4.5% proposal has not been assessed. A related concept aimed at non-residents is still under consideration, she said, but ranks lower because of limited administrative capacity.

No draft law, tax base, exemption or start date exists. It is a request to study a tax, not a tax.

The other taxes on the table

The same exchange covered three measures that are further along:

• Visitor levy: could raise about Cg 26 million a year once running. It is not in the 2027 draft budget. Cabinet and Council of Advice review was targeted for November, with submission to Parliament in the first quarter of 2027.

• Room tax: an amendment from the tourism ministry (TEATT) is under legal review. Scope and rates are not decided.

• Transaction tax: a tax on financial transactions is being studied, with scenarios for the Central Bank of Curaçao and Sint Maarten. Government has not decided to introduce it and has budgeted no revenue from it.

Short-term rental owners should also follow the rental bill now waiting on the finance ministry, which we covered in Sint Maarten Airbnb tax and the rental law.

What it means for buyers and sellers

Today, nothing changes. On the Dutch side, the buyer pays the 4% transfer tax, total buyer closing costs run about 5.5%, and there is no capital gains tax on a resale. Rental income is taxable, and short-term rentals can owe turnover tax and room tax.

If a capital gains tax ever came, the math is modest but real. On Peterson's own example, a $700,000 gain taxed at 4.5% would cost the seller $31,500. On a condo resale with a $150,000 gain, it would be $6,750. The details that would decide the bill are still open: whether it taxes the gain or the sale price, whether renovation costs reduce the gain, whether an owner's main home is exempt, and how property held through a company is treated.

Keep your paperwork. Any gains tax is calculated against what you paid. Keep the notarial deed, the closing statement and invoices for major work. That is good practice regardless.

Our read

We do not expect this to become law soon. The minister's answer was cautious, she cited limited administrative capacity herself, and the visitor levy and room tax are ahead in the queue. A tax collected by the notary at the transfer is simple to describe; defining the gain, the exemptions and the treatment of company-held property is where proposals like this usually slow down.

Still, the proposal was framed around non-resident owners, which describes many of the buyers we work with. Nobody should change a purchase plan over a request to study a tax. But it is a reminder to buy for the right reasons, price a future resale with some caution and keep clean records. We will report any draft as soon as one exists. If you are weighing a purchase now, our Sint Maarten real estate listings show current asking prices.

Questions we get

Is there a capital gains tax on Sint Maarten property now? Not on the Dutch side. The buyer pays a 4% transfer tax at closing, and rental income is taxable. Confirm your own situation with the notary or a tax adviser.

Would a new tax apply to property I already own? No draft exists, so nobody can say. The detail to watch is whether a future law would count the gain from your purchase date or only from the date the law takes effect.

Does this affect the French side? No. Saint-Martin has its own tax code, set by the Collectivité. This proposal concerns Sint Maarten only.

Sources: SMN News, "Peterson targets property profits" (November 4, 2026) and "Visitor Tax Could Net Cg. 26 million a Year as Transaction Tax remains under study" (November 9, 2026); Andreu Realty buyer cost figures.