How to Purchase Property in the Bahamas

The costs involved in purchasing a property in the Bahamas are as follows:

Legal Fees:

A real estate transaction can not be completed without a Bahamian Attorney. Fees for closings are typically 2.5% of the Conveyed price plus VAT.

Real Estate Fees:

6% on improved property plus VAT

10% on vacant property plus VAT

VAT on Real Estate after October 2022

For Individuals:

Under $100K = 2.5%

100K-300K = 4%

300K-500K = 6%

500K-1,000,000 = 9%

Over 1M = 10%

*1st time homebuyers' exemption for Bahamian citizens between 300K and 400K is now 4%

*For the transfer of Real Property as of October 2022 all Conveyances must have a Real Property Tax assessment number included.

Rate of Real Property Tax:

Owner occupied property (property that the owner resides)

$0-$300K = Exempt

$300K-$500K = 0.625% of the value per annum

$300K- $500K = 1% of the value per annum. Maximum tax rate is $120,000 per annum

Cap on Real Property Tax valued over $6,000,000 is $120K

Commercial Properties (more than 4 units that are not owner occupied)

$0-$500K = 0.75% of the value per annum

$500,001 -2,000,000 = 1% of the value per annum

Over $2,000,000 = 1.5% of the value per annum

Other Property

Bahamian Owned: 1% of the value of improvements per annum

Non Bahamian Owned: 1% of the value of improvements plus the amount payable on the value of the unimproved property

*Real Property Taxes are due on March 31st of every calendar year.

*Bahamian citizens are not taxed on unimproved property in the Bahamas

Purchaser seeking Permanent Residency:

To qualify for economic permanent residence a person must invest a minimum of seven hundred fifty thousand (B$750,000) Bahamian dollars in The Bahamas. Applications are accelerated for major international investors and owners of residences valued at one million five hundred thousand (B$1,500,000) Bahamian dollars or more. The Immigration Department guarantees a response within twenty one (21) days of submission of a complete application.