TAXATION IN SAINT BARTHELEMY :
Capital gains tax on the sale of a principal residence

When a property is sold, the seller may realize a capital gain.

When your property is located on the island of Saint Barthélémy, regardless of the nature of the seller (individual or corporate) and his or her domicile (on Saint Barthélémy territory or not), article 100 of the Saint-Barthélémy Tax Code stipulates that taxation must be instituted for the benefit of the Collectivité de Saint-Barthélémy.

The tax rate is 20%.

The basis on which the tax is calculated varies according to the length of time the transferor has held the property:
- up to eight years of ownership, no allowance is applicable, and taxation is calculated on the entire capital gain.
- from the ninth year onwards, an allowance of 20% per year is applied. Thus, after 13 years of ownership, the allowance is 100%.

This is why, to calculate the portion of the capital gain that will be taxed, we need to multiply the capital gain made by the seller by the percentage allowance. The portion found is that of the allowance, so all you have to do is subtract the amount found from the amount of the capital gain.

For example:
1: A property, a principal residence, was acquired for €200,000. The property is sold after 8 years at €320,000.
The capital gain is €320,000-200,000, i.e. €120,000.
After 8 years, the allowance is 0%.
The seller will therefore be liable for 20% of the €120,000, i.e. €24,000.

2: A principal residence has been acquired for €200,000. The property is sold after 9 years at €320,000.
The capital gain is €320,000-200,000, i.e. €120,000.
After 8 years, the allowance is 20%. So 120,000×20% = €24,000.
The tax base is therefore 120,000- 24,000= €96,000.
The transferor will therefore be liable for 20% of the €96,000, i.e. €19,200.

Note that the seller is not liable for social security contributions when selling his principal residence.

Capital gains tax on the sale of a second / vacations home

When a taxpayer sells his or her second home on Saint-Barthélemy, the seller may realize a capital gain.
If the property is located on the territory of the Collectivité de Saint Barthélémy, then regardless of the nature of the seller (individual or legal entity) and his domicile (on the territory of Saint Barthélémy or not), article 100 of the Code des Contributions de Saint-Barthélemy states that taxation must be instituted for the benefit of the Collectivité de Saint-Barthélemy.
The tax rate depends on the number of years the property is held: for the first eight years of ownership, the tax rate is 35%, falling to 20% from the ninth year onwards. 
The basis on which the tax is calculated varies according to the length of time the property has been held by the seller, and the method of acquisition:

> For property acquired for valuable consideration:
- up to eight years of ownership, no allowance is applicable; taxation is calculated on the entire capital gain.
- from the ninth year onwards, a deduction of 10% per year is applied. As a result, after 18 years of ownership, the allowance is 100%.
> For property acquired free of charge (by donation, for example):
- up to eight years of ownership, no allowance is applicable, and taxation is calculated on the entire capital gain.
- from the ninth year onwards, an allowance of 20% per year is applied. As a result, after 13 years of ownership, the allowance is 100%.
So, to calculate the tax rate, you need to determine the applicable allowances on the capital gain and then apply the tax rate according to the number of years held.

For example
A property, a second home, was purchased for 150,000 euros. The property is sold after 13 years at 330,000 euros.
The capital gain is 330,000-150,000, or 180,000 euros.
After 13 years, the allowance is 50%. So 180,000 x 50% = 90,000 euros.
The seller will therefore be liable for 20% of the 90,000 euros, i.e. 18,000 euros.