Guadeloupe Real Estate

When you’re looking to buy or sell property in Guadeloupe it’s crucial to take into account the taxes and costs associated with the process. Buyers usually come across a transfer tax called “droits d’enregistrement,” which can range from 5.09% to 5.81% of the property value. Notary fees, which cover matters and documentation typically amount to around 7% of the house or property price. Additionally, there is a registration fee of 0.814%.

As for sellers, they need to consider a capital gains tax that varies based on how they have owned the property and its nature. Non-residents may be subject to a withholding tax of 33.33% on the selling price; however, this can be lower under tax treaties.

In Guadeloupe both buyers and sellers are responsible for sharing the agent’s commission, typically ranging from 5% to 10% of the property value. Other potential expenses include survey fees, mortgage registration fees, and management fees if the property is used for rentals.

Rental Income: When nonresidents earn income from property in Guadeloupe they are subject, to a tax rate of 20%. It’s important to differentiate between unfurnished lettings because this distinction impacts taxation in terms of allowable deductions.

Capital Gains: EU residents and residents of France are now required to pay a tax rate of 16% on the gain. This is after accounting for inflation relief and deducting acquisition and improvement costs. Nonresidents from EU countries are subject to a capital gains tax (CGT) rate of 33.3% taking into account any double tax treaties.

Inheritance; In international law, there is a standard rule regarding inheritance known as the double rule. According to this rule, the law that applies to assets depends on the individual’s domicile. Meanwhile, immovable assets are ruled by the law of the location where they are situated.