St. Barthelemy: the tax-free island

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The beautiful French island of Saint-Barthelemy benefits from a privileged tax status that is governed by the organic law of 2007.

Consequently, people whom have been residents in Saint-Berthelemy for more than 5 years are exempt from the income tax as well as from the wealth tax for all of their real estate properties located in Saint-Barthelemy. Equally, they are not subject to VAT nor to any other tax.

They also do not pay any inheritance tax on properties situated on the island, which benefits heirs living in a country with no inheritance tax.

Note that the renting activity also benefits from a favorable tax regime and are low-taxed thanks to the amortization regulations.

Example:

If a British citizen purchases a villa on the island, the rentals he collects will not be taxed during the first 30 to 40 years, due to the significance of the amortization regulations.

Important:

Note that Saint-Barthelemy continues to be attached to French fiscal legislation for some points such as the social charges (CSG-CRDS) that remain due. Considering the absence of tax agreements with third countries (USA, Italy, France, Russia, etc…), it is advised to keep accounts in order to forward them to the country of residence for fiscal purposes.

However, as the subject is particularly complex, you should contact a specialist. Email Benjamin Roche at rocherealtysbh@gmail.com. He is specialised in the taxation system involving SCI companies.

Visit http://www.cabinet-roche.com/en/.

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