It is interesting to compare the Stamp Duty (“Droit d’enregistrement“) applicable to real estate transfers in New York City with the one applicable in Saint Barts.
The new New York City stamp duty schedule, effective July 1st, 2019, will be as follows:
● $1 million to $1,999,999: 1.00% (same as previously)
● $2 million to $2,999,999: 1.25%
● $3 million to $4,999,999: 1.50%
● $5 million to $9,999,999: 2.25%
● $10 million to $14,999,999: 3.25%
● $15 million to $19,999,999: 3.50%
● $20 million to $24,999,999: 3.75%
● $25 million or more: 3.90%
The Stamp Duty applicable to real estate transactions in Saint Barts amounts to 5% of the price of the transaction. In addition, the buyer has to pay the “notaire’s” fee (a fee to the agent appointed by the state to handle the land registry), which amounts to about 0.9%, and the land registry fee, which amounts to about 0.10%.
In total, the mandatory costs of a real estate transaction are about 6% of the price of the transaction in Saint Barts.
So, let’s keep in mind that it costs twice as much to close a real estate transfer in Saint Barts than it does in New York City.
Lastly, it is, of course, crucial to be assisted by a local law firm in order to negotiate and to secure the transaction. Attorneys’ fees are usually very reasonable, compared to brokers’ fees and to the above mandatory costs, and can help you save a lot of money on your transaction.