Heyliger-Marten targets Airbnb, vacation rentals with tax increase up to 12% over three tears

GREAT BAY--Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Grisha Heyliger-Marten has outlined proposed changes to St. Maarten's Accommodation Tax Ordinance that would gradually increase the tax from its current 5% to 12% over three years, strengthen tax collection from Airbnb and other short-term vacation rentals, and ensure that overseas property owners generating income from tourist accommodations contribute to government revenue.

The Minister provided details of the proposed legislation during the continuation of the 2027 national budget debate, explaining that the reforms are intended to modernize the country's accommodation tax system, close compliance gaps and establish a more equitable framework for hotels, timeshare properties and the growing short-term rental market.

Under the proposal, the accommodation tax would increase from 5% to 8% in the first year following implementation, 10% in the second year and 12% in the third year.

Heyliger-Marten said the phased increases would bring St. Maarten closer to regional standards while creating opportunities to generate additional revenue from the tourism industry.

Airbnb, Booking.com and Private Vacation Rentals Included

One of the central components of the proposed legislation is the expansion and modernization of the legal definitions governing short-term tourist accommodations.

The draft introduces the concept of online deeleconomiewoningen, referring to accommodations offered within the sharing economy.

According to the Minister, this would include paid short-term rentals arranged directly between property owners and guests, as well as accommodations advertised or booked through online platforms such as Airbnb and Booking.com.

The objective is to ensure that vacation rentals, apartments and other short-term tourist accommodations are recognized within the legal framework alongside hotels and timeshare properties.

The Minister explained that the existing legislation must reflect changes in how visitors book accommodations and how property owners participate in the tourism industry.

The reforms are intended to establish a level playing field among accommodation providers and ensure that operators offering comparable services meet their applicable tax obligations.

Foreign Property Owners Would Also Be Covered

Heyliger-Marten emphasized that the proposed legislation would apply regardless of whether the property owner resides on St. Maarten or overseas.

Individuals and companies generating income from paid tourist accommodations would be subject to the applicable tax obligations, including non-residents who own vacation properties or apartments on the island.

The Minister also disclosed that government is examining the possibility of requiring non-residents to obtain a CRIB number before purchasing real estate on St. Maarten.

This proposal is being considered as an additional mechanism to improve identification, tax registration and compliance among foreign property owners.

However, the proposed CRIB requirement remains under consideration and has not been introduced as an existing legal obligation.

Online Platforms Could Collect Taxes Directly

Another significant proposed change would give the Minister of Finance authority to enter into tax collection agreements with local and international entities, including Airbnb, Booking.com, real estate companies and accommodation intermediaries.

Under such arrangements, participating entities would collect the applicable accommodation tax directly from guests and remit the revenue to government.

The measure is intended to strengthen collection from short-term rentals, particularly where properties are owned by individuals living outside St. Maarten.

The draft legislation would also provide stronger monitoring and compliance mechanisms, including the possible use of technology to identify properties being advertised online for short-term rentals.

Heyliger-Marten explained that the proposed framework would require foreign entities falling under mandatory collection provisions to enter into the necessary agreements with government.

The objective is to reduce gaps in tax collection and ensure that income-generating accommodations are properly accounted for, regardless of the booking method or location of the property owner.

Timeshare Points Systems Also Targeted

The proposed amendments would also modernize the taxation of timeshare accommodations to account for points-based systems.

Under the contemplated framework, accommodations obtained through timeshare points would be taxed based on their equivalent monetary value.

The measure is intended to address changes in timeshare products that may not fit traditional accommodation payment arrangements.

Existing provisions governing hotels and timeshare properties would be maintained, while the proposed changes would update the treatment of newer accommodation models.

Portion of Revenue Could Support Tourism Marketing

The Minister also outlined provisions that would allow part of the accommodation tax revenue to be directed toward the St. Maarten Tourism Authority (STA).

The proposal is intended to create a connection between revenue generated by tourism accommodations and the resources available to market and promote the destination.

Heyliger-Marten indicated that allocating part of the revenue to tourism marketing could also help secure industry support for the proposed reforms.

The legislation does not yet establish, in the details presented to Parliament, what percentage of the revenue would be allocated to the STA.

Legislation Still Under Review

Although the Minister outlined five principal areas of reform, she emphasized that the draft legislation remains subject to internal review and must complete the required advisory procedures, including consideration by the Council of Advice.

For that reason, government has not yet formally presented the proposed amendments to Parliament.

The Minister said it would be appropriate to await the necessary legal and advisory opinions before submitting the legislation for parliamentary consideration.

No implementation date has been announced, and the proposed tax increases and collection mechanisms remain subject to completion of the legislative process.

If adopted, the changes would represent a substantial restructuring of St. Maarten's accommodation tax framework, expanding its application to modern short-term rentals, strengthening collection from overseas property owners and online platforms, and gradually increasing the tax paid on tourist accommodations.

The proposed reforms are intended to ensure that the country's accommodation sector contributes more consistently to public revenue while helping finance the continued promotion and development of St. Maarten's tourism industry.

‍