Yes.  Anyone can own property on either side of the island.  There are very few restrictions to property ownership, and no limitation has been set on the amount of property owned by an individual or company.

Do I need to apply for residency after I acquire property?

It is possible to establish residency on the island, but there is no requirement to do so.  Two types of residency are available:

1) Working - allows the holder to earn income

2) Non-working - allows the holder to reside but not perform a job for compensation

Regardless of the residency status, you are allowed to maintain your current citizenship.  Non-residents may remain on the island as visitors for periods up to 3 months.

Transfer tax is assessed whenever a deed changes hands.  The current rate is 4%.  Capital gain and property taxes do not exist.  If you use your property to generate rental income, you are responsible for the payment of income tax (after the deduction of expenses, such as maintenance and insurance).

What is procedure for purchasing a property?

Purchase Offer

Once you have found a house, condo, or piece of land that you wish to buy, the first step is to sign an "Offer to Purchase" agreement.  This document states the terms and conditions of your offer to the current property owner.  If the owner signs acceptance of your offer, the process has begun.

Deposit

You will need to provide an earnest money deposit (usually 10% of the purchase price), which will be held until closing in a neutral party's (often a notary's) escrow account.  Some deposits are refundable in certain circumstances; others are not.  You need to clearly understand the obligations of both buyer and seller as they relate to your deposit.

Financing/Payment

If you require mortgage financing, there are several options locally available.  Interest rates and loan conditions vary with each lender.  Before the closing can take place, 100% of the purchase price generally needs to be present in the designated escrow account.  Payment is usually made in dollars, guilders, or euros.

Closing

The closing represents the official transfer of property ownership.  A civil law notary, appointed by the Queen of Holland, is responsible for this process.  It is the notary's duty to do a title search and to assure free and clear title.  The notary is liable if he/she transfers a flawed title.  Therefore, title insurance is not necessary.

Deeds take one of three forms:  fee simple, government long lease, and private long lease.  All provide legally registered protection.  Although the official language for documents is Dutch, an English translation is also available.

Buyer and seller may be present at the closing, but their presence is not required.  A power of attorney can be provided to the notary, who is neutral and can act on behalf of all parties.

Fees

In addition to the previously described transfer tax, notary's fees are also due at the time of closing.  Combined fees total between 5 and 5.5% of the purchase price.

Is the process different for ownership of property in French St. Martin?

St. Martin is considered a department of France and therefore belongs to the European Union.  Closing costs for transfer of property range from 9% to 11%.  Property taxes are assessed on an annual basis.  As on the Dutch side, French St. Martiners welcome property buyers from all over the world.

You can always feel free to contact me by phone, fax, or email.  I will be happy to answer your questions or research your needs.