Buying property in St. Barths: what taxes and duties will you pay?

Buying real estate in St. Barths carries a transfer duty of 5% of the purchase price, paid by the buyer at closing, wherever the buyer lives. On top of that come fees owed to the French State and, if you build or furnish, a development tax and the island’s dock duty.

St. Barths real estate: the taxes from purchase to resale

Stage	Tax	Rate or amount
Buying	Transfer duty	5% of the price
Building	Development tax	5% of flat-rate values
Importing	Dock duty	5%; 8% for vehicles
Owning	Waste disposal tax	€105 a year (primary residence)
Renting	Tourist tax	5% of the nightly rate
Selling	Capital gains tax	35% or 20%

For the rest of the island’s tax system, see all the taxes in St. Barths.

What transfer duty do you pay when buying in St. Barths?

The St. Barths Tax Code sets the duty at 5% of the price plus charges, or of the property’s market value if that is higher (article 56). It is:

• paid by the buyer, through the notary, the public legal officer who handles property sales under French law;
• the same wherever the parties live;
• the same whatever the type of property.

Fees owed to the French State

The 5% duty is the local tax. Two items owed to the French State come on top: an assessment fee and the land registration contribution (article 881 N of the French General Tax Code).

Stating the full price

The deed must state that the price shown is the full price (article 159). Concealing part of it is costly: a 50% penalty for which all parties are jointly liable, and any side agreement is void.

Does buying the company’s shares avoid the 5% duty?

The same 5% duty applies to the sale of shares in a company that owns real estate on the island, which the Tax Code calls a “real estate entity” for tax purposes. It is calculated on the actual value of the real estate less the related debt, with no allowance. Buying the company therefore does not avoid the duty: see our insight on holding property through a company.

How much is the development tax in St. Barths?

Construction triggers a development tax (taxe d’aménagement), calculated on flat-rate values.

Item	Flat-rate value
Floor area, standard construction	€1,022 per square meter
Swimming pool	€200 per square meter
Parking	€2,000 per space

The rate is 5% of these values and can reach 20% depending on the zone. A 50% reduction applies to the first 100 square meters of a primary residence. The tax is paid in two installments, 18 and 36 months after the building permit.

Where the built density exceeds the level set by the island’s zoning map, a separate charge for exceeding the density ceiling applies. It equals the value of the land that would have to be acquired to stay within the ceiling, and is paid in three installments.

Furnishing the property: dock duty on imports

St. Barths has no VAT or sales tax, but anything imported by sea or air carries a dock duty of 5% of its customs value: the price paid, plus shipping, insurance and handling to the island. The rate is 8% for motor vehicles. This duty is part of the cost of any investment, from construction to the furnishings of a villa. Goods are taxed only once.

Example: buying a €3,000,000 villa

Take Antoine, who buys a villa for €3,000,000 as a second home. He then builds a 60-square-meter bungalow, a 40-square-meter pool and two parking spaces, and imports materials and furniture with a customs value of €200,000. The amounts are assumptions, for illustration only, with the development tax at the 5% rate.

The development tax base is calculated as follows:

1. Floor area: 60 × €1,022 = €61,320.
2. Pool: 40 × €200 = €8,000.
3. Parking: 2 × €2,000 = €4,000.
4. Total: €61,320 + €8,000 + €4,000 = €73,320.

Because the villa is not his primary residence, the 50% reduction does not apply.

Item	Calculation	Amount
Transfer duty	€3,000,000 × 5%	€150,000
Development tax	€73,320 × 5%	€3,666
Dock duty	€200,000 × 5%	€10,000
Total		€163,666

The fees owed to the French State and the other closing costs come on top and are not quantified here. Island resident or not, Antoine would pay the same transfer duty.

What taxes does the owner pay after the purchase?

There is no property tax or residence tax of the kind found in mainland France. Owners pay a waste disposal tax, set at €105 per year for a primary residence. If the property is rented as a furnished vacation rental, it must be declared in advance and the tourist tax applies, at 5% of the nightly rate. On resale, the seller is subject to the island’s real estate capital gains tax.

Buying property in St. Barths: common mistakes

• Assuming the duty depends on residency. Island resident or not, the buyer pays 5%.
• Budgeting only for the 5%. Fees owed to the French State come on top, then the development tax and dock duty if you build.
• Understating the price in the deed. The 50% penalty falls jointly on all parties, and the side agreement is void.
• Confusing ownership with tax residency. Buying a property does not make the buyer a St. Barths tax resident: that takes at least five years with your tax home on the island. Until then, a newcomer remains liable, among other things, for French real estate wealth tax on their worldwide real estate.

Buying property in St. Barths: the bottom line

Buying property in St. Barths carries a transfer duty of 5% of the price plus charges, paid by the buyer through the notary, wherever the buyer lives. Fees owed to the French State come on top. Building triggers a development tax of 5% of flat-rate values, set at €1,022 per square meter of floor area for standard construction, and imported materials, furniture and equipment carry a dock duty of 5% of their customs value. Buying the shares of a company that owns the property does not avoid the 5% duty. The deed must state the full price: concealing part of it triggers a 50% penalty. A purchase is best costed as a whole, with an advisor, before signing.

A note for U.S. readers: this article covers French and St. Barths rules only. U.S. citizens and green card holders remain subject to U.S. tax on their worldwide income wherever they live.