242.702.8788
info@bhhsb.com

The Ultimate Guide for Buying real Estate and Property in the Bahamas

Guide for Buying Bahamas Real estate

Government Taxes on Property Conveyances

First-time home buyers who are Bahamian citizens:

4% Value Added Tax (VAT) applicable on all property transactions valued more than $300,000 but less than $500,000.

The stamp duty is generally split equally between the purchaser and the vendor. This is typical but is subject to change during negotiations if the buyer and seller agree to a different deal structure.

Real Estate Commissions

Real estate sales and rental commissions are typically paid by the vendor or landlord. This is typical but is subject to change during negotiations if the buyer and seller agree to a different deal structure.

Commission Rates:

Developed Property is 6% while undeveloped land is 10%.
Note: All commission rates are also subject to VAT. See Value Added Tax section.

Annual Real Property Tax (RPT) Rates

Improved Owner-Occupied Property

The first $250,000 in the value of owner-occupied residential property is exempt from RPT.
On the portion of the value of owner-occupied properties between $250,000 and $500,000, the rate is 0.75%
On the portion over $500,000, the tax rate is 1%
There is a ceiling of $60,000 for RPT on an owner-occupied home

Unimproved Vacant Property

For unimproved Bahamas property other than that exempt under the provisions of the Real Property Tax Act (section 39):

Any other Property including commercial property

Exemptions:

Bahamas property owned by Bahamians and situated in the Family Islands is exempt from Real Property Tax (RPT). Property approved as commercial farmland by the Ministers of Agriculture is also eligible for Real Property Tax Exemptions.

Also exempt from Real Property Tax:

A 10 % Value Added Tax (VAT) is charged on all good and services. This includes legal work, real estate commissions or appraisals.

RESIDENCY/VISAS

Permanent Residency

The minimum real estate investment to apply for Bahamas Permanent Residency is $750,000. Owners who purchase property valued in excess of $1.5 million will receive expedited consideration for Bahamas Permanent Residency. Wives and dependents usually resident in the household may also be endorsed on the Bahamas Permanent Residency certificate.

There are many personal benefits to Bahamas Permanent Residency with the main ones being The Bahamas has no capital gains taxes, capital transfer taxes, personal income tax or estate tax. Furthermore, it’s also a stunning tropical paradise to set up a home for tax-free living.

Additionally, you will be able to repatriate the entire proceeds at the time of sale including any profits provided you register the purchase with the Exchange Control Department of the Central Bank at the time of purchase. Your Real Estate lawyer will register the purchase for you at your request.

Annual Homeowners Residence Card

This annual residency card is available to any homeowner in the Bahamas and is obtained through the Director of Immigration. This permit allows the permit holder and their family to enter the country and remain in the country for the duration of the permit.

Entry Visas

Citizens of the United States of America, Canada, and the United Kingdom are not required to have an entry visa as long as their stay is less than 8-months and they can show proof of a return ticket departing the Bahamas. Visitors cannot engage in gainful employment without a permit issued by The Bahamas Department of Immigration. For detailed information on entry requirements please visit:

https://www.bahamas.com/entry-requirements

Schools in the Bahamas

There are many private schools in the Bahamas, including three international schools which offer the International Baccalaureate program:

Children begin primary education at the age of five. After six years, they move on to secondary education which lasts for another five years. Throughout these five years, kids attend a three-year junior high school course, followed by a two-year senior high school course. While education is compulsory for children between the ages of 5 and 16, most kids in the Bahamas also attend some sort of preschool.

HOSPITALS

UTILITY COMPANIES

This information contained on this page is subject to change and is meant to be used as a guide only. If you are entering into any type of real estate transaction you should have legal representation. Berkshire Hathaway HomeServices Bahamas Limited is not responsible for any errors or omissions in the information contained on this website and the information should not be relied upon without confirmation from your attorney.

Ready to Make The Move?

CONTACT US

Log In to Your Account

No Account? Sign Up Now!