LinkedInFacebookTwitterGoogle PlusSkype

Articles & Resources

St Barth, French West Indies Law Firm

05/03/2007

 

New Status of Saint Barth by Law dated February 21, 2007 download by a click on the photo

Saint Barth

In order to help our clients reflect with us about the development of Saint Barthélemy, we have highlighted some passages below which we consider are important for traders, company directors, self-employed persons, employees and investors in Saint Barthélemy as they have significant legal implications:

"Article LO 6214-1. - The territorial authority (collectivité territoriale) exercises powers devolved by laws and regulations applying to district councils (communes) and powers devolved to the administrative department (département) of Guadeloupe.

Article LO 6214-2. - In accordance with the conditions laid down in Article LO 6251-5, the authority may adapt law and regulations which apply locally.

Article LO 6214-3. - I. - The authority lays down the applicable rules in the following areas:

1. Tax, duties and levies in accordance with the conditions provided for by Article LO 6214-4; land registry;

2. Town planning; construction; accommodation; housing;

3. Road traffic and road transport; liner service which is beneficial to the territorial authority; registration of ships; creation, development and use of sea ports, with the exception of employment rules;

4. Road maintenance; land law and property of the territorial authority;

5. Environment including the protection of wooded areas;

6. Foreigners' access to employment;

7. Energy;

8. Tourism;

9. Creation and organisation of services and public institutions for the territorial authority.

However, the State will continue to have powers to lay down the rules relating to carrying out inquiries, reporting and punishing criminal offences.

As an exception to point 2, the State authorities issue, in the scope of the regulations applying to Saint Barthélemy and with the approval of the Executive Council, authorisations or acts relating to land use and development for buildings, installations or work carried out on behalf of the State and public institutions.

II. - In the event where the territorial authority of Saint Barthélemy is granted status as an "overseas country and territory of the European Union and European Communites", the territorial authority will have powers, upon acquiring such status, relating to customs matters, with the exception of French mandatory import and export prohibitions and international undertakings, rules relating to carrying out inquiries, reporting and punishing criminal offences, and litigation proceedings in customs matters.

Article LO 6214-4. - I. - The territorial authority of Saint Barthélemy exercises the powers pursuant to point 1 of I of Article LO 6214-3 with regard to tax, duties and levies in accordance with the following provisions:

1. Individuals may only be considered as residents of Saint Barthélemy for tax purposes after having lived there for at least five years.

Legal entities may only be considered as residents of Saint Barthélemy for tax purposes after having set up the head office of their effective management there for at least five years or where they have set up the head office of their effective management there and they are controlled, directly or indirectly, by individuals who have lived in Saint Barthélemy for at least five years.

Individuals or legal entities failing to satisfy the residency requirements laid down in the preceding two paragraphs are considered as residents of metropolitan France for tax purposes.

2. The territorial authority of Saint Barthélemy will pass on all useful information to the State for the application of its regulations relating to all types of tax and for the performance of the information exchange clauses laid down by tax treaties concluded by France with other states or territories.

3. The territorial authority of Saint Barthélemy will exercise its power with regard to tax, duties and levies without prejudice to the rules laid down by the State, relating to Saint Barthélemy, with regard to social security contributions and other deductions aimed at financing the social security system and paying off the social security deficit, by analogy with the rules applying in Guadeloupe.

The mode of enforcement of this section I are specified, where applicable, by a treaty concluded between the State and the territorial authority of Saint Barthélemy notably with a view to preventing tax evasion and double taxation and defining the territorial authority's obligation with regard to communicating information for tax purposes.

II. - Measures relating to the base, audit and collection of tax, duties and other deductions may be carried out by civil servants in accordance with the terms and conditions laid down by a treaty concluded between the State and the territorial authority.

Article LO 6214-7. - The territorial authority may subordinate the declaration of inter vivos transfers of landed property located in its territory or related social rights, with the exception of donations to a direct or collateral descendant up to the fourth degree of relationship.

With the aim of preserving social cohesion in Saint Barthélemy, guaranteeing the efficient exercise of its inhabitants' right to housing and preserving or developing natural spaces, the territorial authority may exercise its pre-emption right over landed property or related social rights specified on the declaration within a time limit of two months as from receipt of the transfer declaration, provided that it pays the amount of the value of said landed property or social rights to the beneficiaries. In the absence of an agreement, this value will be determined using the same method for expropriation.

The above paragraph does not apply to transfers carried out to persons:

1. who can provide proof of residency in Saint Barthélemy for a sufficient period of time;

2. or who can provide proof of marriage, cohabitation or a civil union pact for a sufficient period of time with a person who can provide proof of residency in Saint Barthélemy for a sufficient period of time.

It also does not apply to legal entities whose registered office is located in Saint Barthélemy and controlled, directly or indirectly, by the persons mentioned in points 1 and 2."

Copyright: Emmanuel JACQUES

Contact Us for a Free Consultation

Contact Us for a
Free Consultation
 
+ 590 590 29 71 10

First Name:

Email:

Phone Number:

Language:

Brief description of your legal issue:

* Type the verification code below:

Emmanuel Jacques Almosnino Practice Areas

Real Estate / Wealth Management
Corporate Structuring
International Taxation
Litigation

Member Of:

International Bar Association

Recognized On:

Martindale The Legal 500

Official Partnerships With:

ibanezparkman