The Sint Maarten Penshonado Regime

The penshonado regime lets a new resident of Sint Maarten pay 10 percent income tax on income from abroad. It is meant for people aged 50 and over who move to the island with a pension, investments or other income from elsewhere.

The conditions are strict and are applied as written. This guide explains who qualifies, what the regime covers and how it can be lost. Whether the move works for you also depends on the rules of the country you leave.

What the regime offers

A taxpayer who qualifies can choose between two options:

• 10 percent income tax on foreign source income.
• The ordinary progressive rates on a fixed taxable income of 500,000 Caribbean guilders (XCG). Income above that amount is not taxed, so this option becomes attractive at higher income levels.

Both options are claimed by a request in the income tax return. There are restrictions on switching between them, so the choice deserves thought in the first year.

Income from Sint Maarten itself falls outside the 10 percent rate. It is taxed at the ordinary rates, with a minimum of 10 percent.

Who qualifies

All of the following conditions must be met:

• You lived outside Sint Maarten for at least 60 consecutive months before the first year in which you apply the regime.
• You were 50 or older when you were registered in the population register of Sint Maarten.
• You report to the Inspector within two months after that registration.
• Within 18 months you own a home on Sint Maarten and live in it. The home is not let to others and was worth at least XCG 450,000 when you acquired it.
• You are admitted to Sint Maarten for more than a temporary stay.

Each condition is objective and is checked as written. The order of the steps therefore needs to be planned before the move.

What counts as foreign income

The 10 percent rate applies to income from sources outside Sint Maarten. That includes:

• pensions and other income from work performed abroad;
• profits from a business abroad;
• income from real estate abroad;
• income from foreign bank balances;
• dividends and gains from foreign companies;
• foreign annuities and life insurance benefits.

Working on the island

Employment or professional activity performed on Sint Maarten disqualifies you from the regime. That rule is wider than most people expect. It covers consultancy and services of any kind performed on the island. Work you do from your home on Sint Maarten for foreign clients is also performed on the island.

Fees as a director of a company on Sint Maarten do not count as foreign income. Employment is allowed only in a company in which you hold a substantial shareholding. The exact conditions of that exception should be checked before any structure is built on it.

The regime suits people who have stopped working or whose income comes entirely from abroad. Anyone who plans to keep working after the move should have this assessed before registering.

How the regime can be lost

• You do not file a complete income tax return on time for two years in a row.
• You do not meet the housing condition for more than six months.

Filing on time is therefore part of keeping the regime, every year.

Common misunderstandings

"The 10 percent applies to all my income"

It applies to foreign source income only. Income from Sint Maarten is taxed at the ordinary rates, with a minimum of 10 percent.

"I can keep working remotely"

Work performed on Sint Maarten disqualifies you, also when the employer or client is abroad.

"I can rent out the home"

The qualifying home must be your own home and must not be let. A property that you let to others does not meet the condition.

Planning the move

The regime works best when the move is planned as one sequence:

1. Check the five years abroad and the age requirement against the planned date of registration.
2. Look at the tax position in the country you leave, including any exit rules and the taxation of your pension.
3. Plan the purchase of the home, so that it is owned and lived in within 18 months.
4. Register on Sint Maarten and report to the Inspector within two months.
5. Claim the regime in the first income tax return and choose between the two options.

The country you leave may keep a claim on part of your income, for example on pensions. Between the Netherlands and Sint Maarten a tax arrangement applies, with detailed rules for pensions. Other countries have their own rules, and many have no tax treaty with Sint Maarten.

Buying the home costs transfer tax of 4 percent. Sint Maarten does not collect inheritance tax and has no wealth tax. More on buying and holding property on the island is in Sint Maarten Rental Property Tax Guide for Non-Residents.

How we help

We plan the relocation timeline, the purchase of the home and the notification to the Inspector as one file. We also look at the position in the country you leave, so that both sides fit together.

We start with a short intake and an engagement letter. For the wider picture, see Doing Business in Sint Maarten: Tax Guide 2026. Our page on the Sint Maarten personal income tax return explains the return in which the regime is claimed.

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