Long Lease vs Freehold St Maarten: Ownership Types (2026)
Long lease vs freehold in St Maarten comes down to the land. With freehold (eigendom) you own the land and the buildings, with no end date. With long lease (erfpacht) you own the buildings and hold the land under a fixed-term contract, paying annual ground rent. Both are registered by a notary, mandatory on the Dutch side, and there is no annual property tax. I am an agent, not a lawyer, so confirm the details of any deed with your notary.
- Freehold (eigendom): the land and the buildings are yours, no end date, no ground rent.
- Long lease (erfpacht): you own the buildings and pay annual ground rent on land held under a fixed-term deed.
- Buyer closing costs on the Dutch side run roughly 4 to 6 percent, with no annual property tax.
- Foreigners can buy freehold on the Dutch side with no ownership restriction, and financing exists for qualified buyers.
What is the difference between long lease and freehold in St Maarten?
Listings in St Maarten are commonly described as freehold (eigendom) or long lease (erfpacht). Freehold means the land and the buildings are yours, with no end date. Long lease means you own the buildings and hold the land under a long fixed-term contract, paying annual ground rent to whoever holds the land title. I am an agent, not a lawyer, so confirm every legal detail with your notary, who reads the deed.
This is the first question I get once someone starts buying property in St Maarten and opens a listing that says long lease. The label is not a red flag. It tells you what sits under the building and whether a yearly payment travels with it. Two similar condos, one of each, carry different arithmetic, not a predetermined winner.
The Dutch side uses Dutch civil-law vocabulary, so eigendom and erfpacht are the words on deeds and in St Maarten real estate listings. A civil-law notary is mandatory here and handles the title search, deed, escrow, and registration, which is why the US habit of buying title insurance is not the norm on this side. That notary is your source of truth on any erfpacht deed.
How does long lease (erfpacht) work on the Dutch side?
With long lease, or erfpacht, you own the building and hold the right to use the land under a long fixed-term contract, paying an annual ground rent that Dutch deeds call the canon. The land title stays with the lessor, and the lessor is named in the deed. Ask your notary who actually holds that title rather than assuming who it is.
Three things define any long lease, and all three live in the document rather than in a rule of thumb. The term is set out in the deed, so read it and note the exact end date instead of working from a typical length. The ground rent may be fixed for a period or reviewed at intervals, so it can move. Renewal and transfer conditions vary from deed to deed.
You will see long lease land in some developments here. Which ones, and how the arrangement came about, is worth checking property by property in the deed. Before an offer goes in, I ask the notary to pull the erfpacht terms and read them back in plain language, and I ask the seller for the last ground rent invoice. Selling later, mortgaging, and leaving the property to heirs all turn on what that deed says. Verify those points with your notary, and your tax position with a tax advisor. I can tell you what to ask, not what the answer will be.
Long lease vs freehold in St Maarten: what you own, cost, and resale
The core difference is what you own and for how long. Freehold gives you land plus buildings, no end date, no ground rent. Long lease gives you the buildings plus the right to use the land for a fixed term, with annual ground rent on top.
| Factor | Freehold (eigendom) | Long lease (erfpacht) |
|---|---|---|
| Who owns the land | You do, outright | The lessor named in the deed. You own the buildings |
| Term | No end date | Long fixed term, renewal depends on the deed |
| Ongoing land cost | None | Annual ground rent (canon) |
| Buyer closing costs | About 4 to 6% of price, Dutch side | Confirm the calculation with your notary |
| Annual property tax (Dutch side) | $0 | $0 |
| Mortgage | Available to qualified buyers with a down payment | Ask your lender. Terms are not something I can promise |
| Resale | Generally the simpler title to sell on | Your buyer will look hard at the remaining term |
Buyer closing costs on the Dutch side run roughly 4 to 6 percent of the price, about 4 percent transfer tax plus a notary fee of roughly 1 to 1.5 percent, and the seller usually pays the agent commission. How those costs are calculated on a long lease transfer is worth confirming with your notary before you set a budget. The French side, Saint-Martin, is a different legal and tax system, generally more expensive to buy into and to hold, with transaction costs often 7 to 8 percent plus annual taxes. See my St Maarten vs St Martin breakdown.
There is no annual property tax on the Dutch side, which surprises buyers from the US and Canada. Your recurring costs are the ones you can count: insurance, utilities, building fees, and, on a long lease, the ground rent. Tax rules can change, so confirm where you stand with your notary or tax advisor.
Can you get a mortgage on long lease property in St Maarten?
Financing on the Dutch side exists for qualified foreign buyers who can put down a deposit. Whether a particular bank will lend against a particular long lease property, and on what terms, is a question for that bank. I raise it with clients early rather than letting anyone assume, because I cannot speak for how a lender underwrites a file.
What I can do is tell you what to have ready. Get the remaining term and the current ground rent in writing, because on an erfpacht file those are the first details a lender asks about. Have your proof of income, the source of your down payment, and your identification in one place. If you are buying from overseas, ask what the lender needs from a non-resident applicant, because the answer varies by bank.
Freehold is often called the cleaner file for a lender, and that is an instinct rather than a promise about your loan. The answer you can rely on is the one your bank puts in writing. If financing is part of the plan, line up your bank early and read my notes on banking and financing in St Maarten before you shortlist anything. Send me the listings you are weighing and I will tell you what to put to your lender.
What should you check before buying long lease land in Sint Maarten?
Before you buy long lease land, get five things out of the deed: the years remaining, the current ground rent, how and when that rent is reviewed, who the lessor is, and the renewal and transfer rules. Your notary can read all of it back to you before you commit any money.
I treat the ground rent like any other carrying cost, not a footnote. A lower purchase price paired with a rent that can be reset at the next review may look different once you have held the place for years, so I ask for the last review date and the review formula in writing, then run the numbers across the years you intend to hold. If nobody can produce those documents, that is information too.
- Years remaining: the exact end date written in the deed, not an estimate from a listing.
- Ground rent (canon): the current annual figure and when it was last set.
- Review schedule: whether the rent can be adjusted, how often, and on what formula.
- The lessor: who is actually named on the land title in the deed.
- Transfer and renewal rules: any consent needed to sell, to mortgage, or to extend.
Ask for the documents before you get attached to the view, and put the same questions to the freehold listing you are comparing against. None of this replaces professional advice: confirm the legal points with your notary and your own position with your tax advisor before you sign.
Is freehold or long lease better when buying property in St Maarten?
Neither is automatically better. It depends on the property, the deed, and what you plan to do with it. Freehold is generally the simpler title to sell on and carries no ground rent. Long lease may price differently from a comparable freehold unit, and in some buildings or estates it is the only ownership type on offer. Compare the actual asking prices side by side rather than assuming either one is cheaper.
Long lease vs freehold in St Maarten is not good versus bad. It is two sets of numbers and two sets of documents. Read the deed, price the ground rent across the years you plan to hold, and the right answer usually shows itself.Wei Landgraf, Dutch-side agent, St Maarten
If you want the simplest exit, freehold is the easier title to sell on. Whether it costs more than a comparable long lease unit is something to price on the listings in front of you. If a long lease building suits how you want to live, and the term and the rent read well once the notary has been through them, it can be a sound buy.
The Dutch-side constants are worth holding on to. A notary is mandatory. Buyer closing costs land around 4 to 6 percent. There is no annual property tax, and no restriction on foreign ownership. Everything else comes down to the deed attached to the specific property, which is why I will not hand you a verdict on erfpacht in general. Send me the listing and I will tell you what I would want answered.
Frequently Asked Questions
Is long lease the same as leasehold in St Maarten?
Long lease, called erfpacht in Dutch, is what buyers here usually compare to leasehold. You hold the land under a long fixed-term contract and own the buildings on it. The term, ground rent, and renewal rules are set in the deed, so read them with your notary rather than assuming they match leasehold elsewhere.
Do you own the land with long lease property in Sint Maarten?
No. With long lease (erfpacht) you own the buildings and hold the right to use the land for a fixed term, while the land title stays with the lessor named in the deed. You pay annual ground rent, called the canon. Freehold (eigendom) is where the land is yours too.
What happens when a long lease expires in St Maarten?
It depends on the specific contract. Some deeds set out renewal terms, some do not, and the ground rent can be reset. I do not assume an outcome. I have the notary read the expiry and renewal clauses out of the deed before you buy, and you should confirm the position with your own legal advisor.
Is freehold better than long lease in St Maarten?
Freehold is generally the simpler title for resale and carries no ground rent, which is why many buyers lean that way. Long lease is sometimes the only ownership type available in a development. Neither is automatically better. It comes down to the property, the years left in the deed, and your plans.
Are there annual property taxes on the Dutch side of St Maarten?
The Dutch side has no annual property tax. On a long lease, your recurring land cost is the ground rent, which is a contract payment rather than a tax. Rules can change, so confirm the current position with your notary or tax advisor before you close.
Can foreigners buy freehold property in St Maarten?
Yes. The Dutch side places no restriction on foreign ownership, so non-residents can buy freehold (eigendom). A civil-law notary is mandatory and handles the title search, deed, escrow, and registration. Financing exists for qualified foreign buyers with a down payment, although terms are up to the lender.
