Bahamas Property Buying Information

"Buying Real Estate in the Bahamas Is A Simple Process it can be timely but it's so worth it!"

The Buying Process:
Once you have chosen your property to purchase, a reservation agreement and  a sales agreement needs to be signed and an agreed deposit as a % of the purchase price will be required and held in escrow in order to take the property off of the market. Once both buyer and seller sign the agreement specifying the terms of the transaction it becomes a binding contract. It is necessary to hire a Bahamian attorney who will complete the title search, conveyance (exchange of ownership), handle the exchange and disbursements of all monies as well as oversee the signing and registration of all documents. The Closing and conveyance will occur after good title has been shown and the balance of the purchase has been paid. All closing costs, including legal fees, government stamp tax, real estate commissions and recording fees are then disbursed. - We have access to many lawyers in The Bahamas if you need help in choosing one please email us for the list.

Buyer and seller typically share the stamp tax and are responsible for their individual attorney's fees. These are established by the Bahamas Bar Association, and typically amount to 2.5% of the gross sale price of the property. There is also a small recording fee when the title deeds are recorded at the Public Registry. If you do not have a Bahamian lawyer your realtor can provide you with recommendations and references.

Stamp Duties & Taxes:
Bahamas Government Stamp Tax on Property Conveyances are as follows:
Up to and including $0 - $20,000 = 2%
From $20,000.01 - $50,000.00 = 4%
From $50,000.01 - 100,000.00 = 6%
From $100,00.01 - 250,000.00 = 8%
Over $250,000.00 = 10%

Buyer and seller split the Government stamp tax. 50/50

Exemption from Government Stamp Duty tax is for “the first and only home” of a purchaser and where the overall value of the transaction is $500,000.00 or less. The purchaser’s 50% of the overall stamp duty will be exempted. (If they reside in the dwelling-house for a minimum period of 9 months per year.)

Registration of Property and Permits:
Under the International Persons Landholding Act, permits are required for land purchases made by non-Bahamians only if the property being bought is larger than five contiguous acres or if the buyer intends to rent out all or a part of the real estate or to develop for commercial purposes.

Non-Bahamians must register their purchase of any type of property with the Secretary to the Foreign Investments Board. The fee to apply to register a property or to apply for a permit is $25.00. Once the certificate of registration or permit is issued the additional fees due depend on the value of the property.

Fees:
$50,000.00 or less = $50.00
More than $50,000.00 and under $101,000.00 = $75.00
More than $101,000.00 = $100.00
The market value is defined by the last sale price of the property.

Real Property Tax:
All real estate owners must pay this once a year which is due on or before December 1st of each year.

Exemptions:
For owner occupied property (must reside therein 9 months or more to qualify) the first $250,000.00 is tax exempt.
A five year exemption is available from the date of occupancy certificate for a first time owner but only for homes valued more than $250,000.00 but less than $500,000.00 which are used exclusively as a dwelling house (not a part of which is rented out.)
Unimproved property is tax exempt if owned by a Bahamian.
Property owned by a Bahamian in the family islands is also tax exempt.

Fees & Regulations:
Vacant land owned by Non-Bahamians is as follows of the full market value:-
First $3,000.00 = $30.00
The portion worth more than $3,000.00 and up to $100,000.00 = 1%
On the portion worth more than $100,000.00 = 1.5%

All other Properties including commercial is as follows: - (which most foreign 2nd home owners are now categorised as)
First $500,000.00 = 1%
Balance = 2%

Financing: There are many options and banks offering finance - also owners can sometimes offer financing help.

Bahamas Residency

Although work permits are more difficult to obtain, getting permanent residence is a relatively easy process. Annual residency in Bahamas is allowed if you or your spouse or dependent is a citizen of The Bahamas, a real estate permit holder, an independent economic resident, or a resident or seasonal home owner. Proof of status is required. Permanent residence requires among other things "good character" and evidence of financial support. Accelerated application approval is likely for major international investors and owners of residence valued at $500,000 or more.

Bahamas Cost of Living

The cost of some goods in the Bahamas may be considered to be relatively high due to the fact that most of our goods are imported and duty and freight charges have to be added. Automobiles, food and clothing fall into this category.

Medical and dental treatment is less than non-insured treatment in the United States. At the government-owned Princess Margaret Hospital in Nassau, or the Rand Hospital in Freeport, out patients' visits are inexpensive, however the wait may be long.