How to Purchase Property in the Bahamas
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.