Estate Planning in Sint Maarten: Protecting Your Caribbean Assets

One of Sint Maarten's most underappreciated advantages is its complete absence of inheritance and estate tax. As a Penshonado resident, you pay 10% on your income during your lifetime — and when assets pass to your heirs, Sint Maarten levies no estate duty whatsoever. For individuals with significant accumulated wealth, this is a generational planning opportunity that rivals any offshore structure available anywhere in the world.

Understanding the Absence of Inheritance Tax

Sint Maarten abolished its estate and inheritance tax as part of the post-2010 constitutional restructuring of the Dutch Caribbean. This is not a temporary exemption or a special program requiring application — it is the baseline legal position. SXM residents who pass assets to heirs — whether children, partners, or other beneficiaries — face no SXM estate tax liability.

This contrasts dramatically with the United States (federal estate tax up to 40% on estates above the exemption threshold), the Netherlands (inheritance tax up to 40%), Canada (deemed disposition on death at capital gains rates), and the UK (inheritance tax at 40% above the nil-rate band).

The implication: a SXM Penshonado resident with a $5 million investment portfolio who passes that portfolio to their adult children faces zero SXM inheritance tax on transfer — versus a potential US liability of up to $800,000+ for the same estate.

Using the Stichting (Foundation) for Asset Protection

The Stichting (Foundation) is Sint Maarten's most powerful estate planning tool. Because a Foundation has no shareholders and holds assets in its own name — governed by its board and constitutional documents — assets contributed to a properly established Foundation are legally separated from the personal estate of the contributor.

Benefits of a SXM Foundation for estate planning include:

• Assets held by the Foundation are not part of the contributor's personal estate at death — they pass according to the Foundation's governing documents, not through probate
• Beneficiaries (children, family members) can be designated with specific terms and conditions attached to distributions
• Protection from personal creditors — assets within a properly constituted Foundation cannot generally be attached by personal creditors of the contributor
• Continuity — the Foundation survives the death of its founders and continues operating under the board's management
• Privacy — the Foundation's assets are not subject to public probate proceedings

A common structure: a SXM Penshonado resident contributes their investment portfolio to a Foundation, which in turn holds shares in an NV or BV operating entity. Income flows from the NV/BV to the Foundation, which makes distributions to the Penshonado-resident board member at the 10% rate. At death, the Foundation's assets pass seamlessly to designated beneficiaries under the Foundation's statuten — with no SXM inheritance tax.

Wills Under Dutch Caribbean Law

SXM residents should execute a will that is valid under Dutch Caribbean law (governed by the Burgerlijk Wetboek BES for private law matters). A SXM-domiciled will drafted by a local notary handles SXM-sited assets efficiently and avoids the delay and cost of cross-border probate.

If you have assets in multiple countries — for example, real estate in the US, investment accounts in Europe, and SXM property — you may need parallel wills in each relevant jurisdiction. The EU Succession Regulation (applicable to the Netherlands' EU member states but not directly to SXM) has influenced practice in cross-border estate planning within the Dutch Kingdom. A coordinated multi-jurisdiction will strategy prepared by CaribTax in collaboration with attorneys in your home country is strongly recommended.

Cross-Border Estate Issues for US Persons

US citizens retain exposure to US federal estate tax regardless of their SXM residency. The US estate tax applies to the worldwide assets of US citizens (and in some cases, US domiciliaries). As of 2026, the federal estate tax exemption is approximately $13.6 million per individual ($27.2 million for married couples), with a sunset provision that could reduce these thresholds if Congress does not act before 2026 year-end.

For US citizens with large estates, SXM's zero inheritance tax is still valuable — assets held in a properly structured SXM Foundation may receive favorable treatment — but coordinated US estate planning remains essential. CaribTax coordinates with US estate attorneys to ensure the SXM structure is consistent with your US estate plan.

For guidance on foundation structures and cross-border estate planning as a SXM resident, BrightPath Caribbean's CaribTax team works alongside qualified local notaries and international estate attorneys. Book a strategy session to discuss your specific situation.