Efforts to better regulate the real estate industry (see Monday newspaper) are most welcome. Caretaker Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Grisha Heyliger-Marten has only about two months left in office, but her push in this matter might prove beneficial later.
The main reason would be tackling malpractices that have unfortunately occurred more than once in the recent past, giving the sector in particular and the island in general a bad reputation. Such a policy is reportedly to include requiring a physical office in St. Maarten with proper signage as well as being in the business at least five years, compliant with their licences and part of the Multiple Listing Services (MLS).
To what extent brokers present at a meeting with the minister agreed with all this is not known, but she said they “themselves are eager to see the sector regulated.” A registered list of agents must help ensure that commission on a sale through a notary can only be paid to those on it.
However, no mention was made of what could be viewed as an “elephant in the room,” namely non-resident homeowners renting out their property without paying income tax. Since the former botched attempt to levy a so-called “condo tax,” where people – often repeat guests – were indiscriminately sent retroactive assessments without indication they had actually collected any rent, this issue has remained pending.
Hopefully the latter will soon change, just like getting a fiscal contribution also from short-term vacation rental platforms such as Airbnb and others operating in the so-called “home-sharing” market. Considering that a “tourist tax” put in the 2024 budget for 10 million Netherlands Antillean guilders never materialised and the present government says it must cut in total NAf. 32 million, this seems an area of urgent attention.
One of the objections heard in the past was that unless every provider is targetted, the danger of promoting unfair competition instead of a level playing field exists. While that argument may be plausible, the current situation has increasingly become equally unfair to local accommodations that already carry the burden of taxes, social premiums, etc.
At the end of the day, everyone should indeed pay their correct share of tax on money earned in the country and it makes all the sense in the world to start with low-hanging fruit.
