Peterson calls for review of capital gains tax on real estate profits

MP Raeyhon Peterson called on government to examine a capital gains tax on real estate transactions during the continuation of the 2027 national budget debate on Wednesday 4 November. Peterson said the measure could allow Sint Maarten to collect more revenue from profits made when local properties are sold or transferred.

Peterson also urged the Minister of Finance to examine taxation of short-term rental income. He questioned whether existing laws and government mechanisms identify and tax profits from local real estate held through offshore companies.

As a hypothetical example, Peterson described an investor buying a condominium through an offshore company for about US$800,000 and selling or transferring the investment through another offshore entity for US$1.5 million eight months later. He questioned whether Sint Maarten receives an appropriate share of gains in such transactions.

Peterson said government should assess the wider economic effects of large developments, including demands on roads, electricity and water. He also referred to condominium-tax proposals discussed between about 2010 and 2015 and said government should revisit that work.