Can SARF represent me
in Saint Barts?
Accredited tax representatives in mainland France for over 25 years, we are specialists in capital gains tax payable by non residents.
SARF was accredited by the Collectivity of Saint Barthelemy by decision of the Territorial Council of 12 February 2008 which introduced the obligation to appoint a tax representative when disposing of property or property rights in Saint Barts (section 109 bis of the Code des Contributions), in order to guarantee that the capital gains tax is paid.
SARF is a private company, dedicated exclusively to providing tax representation services.
When is it obligatory to appoint SARF in Saint Barts?
•If you are a private individual or an individual or corporate shareholder of an SCI or registered partnership established in France or in Saint Barts, and are not domiciled:
- in Saint Barthelemy in the meaning of section LO 6214_4 of the Code Général des Collectivités Territoriales
- in France in the meaning of section LO 6214_4 of the Code Général des Collectivités Territoriales
- or in France in the meaning of section 4B of the General Tax Code (CGI).
• If you are a corporate shareholder established outside France or Saint Barts.
Which taxes or levies is the tax representative responsible for?
Applicable to capital gains made by individuals or companies domiciled in Saint Barts or elsewhere, resulting from the disposal for payment:
- of built property or bare land in Saint Barts
- of the property rights attached to these properties,
- or of shares in companies with a majority of real estate assets, defined under section 74 of the Code des Contributions.
Applicable to profits made by individuals or companies from disposals for payment of properties, property rights and shares in companies with a majority of real estate assets, defined under section 74 of the present Code, resulting from operations of:
- property dealing,
- property development,
- acquisitions with a view to building one or more buildings and selling them in a single block or by lots,
- acquisitions with a view to resale after division into lots.
How is the chargeable gain and the Tax on Property Profits calculated?
(section 100 to 109bis of the Saint Barthelemy Code des Contributions)
The gross chargeable gain is equal to the difference between the sales price and the purchase price (the tax authorities can substitute the market value on the day of the sale or purchase for the declared sales or purchase price) - (section 102).
• The reference purchase price is increased by certain documented costs
(section 102) :
- Purchase costs:
> Either at actual cost
> or, in case of acquisition for payment, at an all-in rate of 7.5% of the acquisition price (no proof necessary)
- Works :
> Either a 15% lump sum if the building is more than 5 years old
> Or documented costs:
• expenditure on building, rebuilding, extensions and improvements paid by the seller
• expenses paid by a company since the completion or acquisition of the building,
• NB: expenses that are usually payable by tenants are not deductible
- Costs of roads, drains and utilities for building land
- Local town planning tax
- Costs paid to an intermediary or agent (tax representative, estate agent, etc.)
- Home Information Pack
- Compensation paid by the owner to evict a tenant in order to sell the property vacant,
- Architect's fees paid for works in order to obtain an agreement prior to obtaining a building permit
- Costs of deleting registered charges
• Allowance for length of ownership (section 103) :
- The gross chargeable gain is reduced by an allowance of 10% per year from year 6 onwards
- In case of sale of a principal residence owned continuously during the ownership period, the allowance is raised to 20% per year of ownership from year 6 onwards
- In case of disposal of a property acquired free of charge, the allowance is also equal to 20% per year of ownership, from year 6 onwards.
The tax rate is 20%.
Individuals and companies pay the same rate.
The following disposals are exempt:
• Disposals by or in favour of the Saint Barthelemy authorities or the French State
• Disposals which have been declared to be in the public interest for expropriation purposes, under the condition that the full compensation amount is reused for the purchase, construction, reconstruction or extension of one or more buildings within a period of 12 months from the date of receiving the compensation.
• Properties valued at 50,000 € or less in absolute title
Key dates of Saint Barts legislation
State law n° 2007-23 of 21 February 2007 setting up the Collectivity of Saint Barthelemy
This state law came into effect on 15 July, 2007.
The Collectivity of Saint Barthelemy, a former French overseas department forming part of Guadeloupe, became an Overseas Collectivity on 15 July, 2007.
On 13 November 2007, the Collectivity of Saint Barthelemy adopted the Code des Contributions which came into effect on 1 January 2008.
- Capital gains tax form
- The Code des Contributions of 22 january 2013
- Organic Law of 25 January 2010
- Resolution of 12 February 2008 (introducing tax representation - section 109 bis)