Initiatives for Foreign National Home Ownership
- Freedom from Taxation
- Economic and Monetary Stability
- Easy Repatriation of Profits
- Accessible International Financing
- Flexible Immigration Policy
Frequently Asked Questions
Q. I am not a Bahamian, can I purchase property in the Bahamas?
A. Under the International Persons Landholding Act, 1993, non-Bahamians are allowed to purchase property in the Bahamas.
Q. Is it easy for a non-Bahamian to buy property in the Bahamas?
A. Due to the initiation of the International Persons Landholding Act, 1993, the buying of property by non-Bahamians has become significantly easier. With the implementation of this act the costs associated with buying property were significantly reduced as both foreigners and local residents were made to pay the same price.
Q. Are any permits required when purchasing property in the Bahamas?
A. As per the International Persons Landholding Act, 1993, non-Bahamians require permits if:
- The property being purchased is equal to or greater than five (5) acres.
- The purchaser intends to rent out a portion or all of the property.
- The purchaser has intentions of using the property for commercial development.
Additionally, under the aforementioned act, a non-Bahamian who purchases land that does not require a permit is compelled to register their purchase with the Foreign Investment Board.
Q. How can non-Bahamians repatriate money from the sale of property in the Bahamas?
A. Non-Bahamians can repatriate any proceeds from the sale of Bahamian property, in the currency they choose, as long as they registered the property with the Exchange Control Department within the Bank of the Bahamas at the time of the purchase.
Q. Am I required to use a local attorney when purchasing property in the Bahamas?
A. Although not essential, the use of a local attorney when purchasing property in the Bahamas is highly recommended. A local attorney will ensure that all documents are properly prepared in accordance with
Bahamian laws and regulations. Additionally, a local attorney will give opinion on the title to the property and also carries indemnity insurance. A trusted real estate agent will help you find the law firm that best suits your needs. (Please note the exclusive real estate agency for Coral Cay is HG Christie Ltd. Real Estate.)
Q. What are the costs related to buying or selling property in the Bahamas?
A. Real estate agents typically charge a 10% commission on the sale of undeveloped property in New Providence. The commission for developed property, whether residential or commercial is 6%. The Bahamian government also charges stamp duty on property conveyances or realty transfers at a rate of 10% of property valued over B$250,000. Stamp tax is often split between the buyer and the seller unless otherwise specified or agreed to by both parties.
Q. What are the tax advantages of buying property in the Bahamas?
A. One of the greatest benefits of investing in the Bahamas is that the nation is virtually taxfree. There is no income, capital gains or inheritance tax. There is no sales tax except for the stamp duty paid on the conveyance of real property. Real property tax is nominal. The government raises most of its revenue through import duties, licenses and fees.
Q. Is local financing available to nonBahamians and permanent residents for the purchase of property?
A. Local financing is available, however, the loan facility may only be given in US$ at international rates and the down payment required is usually in the area of 40% of the value.
Q. What taxes are there in The Bahamas?
A. The Bahamas has no income tax, capital gains tax, inheritance tax or sales tax with the exception of the Stamp Duty on the conveyance of real property. The government's primary source of revenue is from customs duties on all imported goods into the Bahamas. There is also a Real Property Tax, at the following rates:
In respect of owneroccupied property:
- The first $250,000 is taxexempt.
- On that portion in excess of $250,000 and less than $500,000 the rate of tax is 0.75% of the market value of the property.
- On the portion in excess of $500,000 and less than $5,000,000 the rate of tax is 1% of the market value of the property.
- On the portion in excess of $5,000,000 the rate of tax is 0.75% of the market value of the property.
In respect of unimproved property other than unimproved property exempt by virtue of Sect ion 39 of the Real Property Tax Act:
- Upon that part of the market value that does not exceed $3,000 a fee of $30.00
- Upon that part of the market value which exceeds $3,000 but does not exceed $100,000 a tax rate of 1% per annum of the market value of the property.
- On the portion in excess of $100,000 the tax rate is 1.5% of the market value of the property.
In respect of any other property:
- Upon that part of the market value that does not exceed $500,000 a tax at the rate of 1% per annum of the market value.
- Upon that part of the market value in excess of $500,000 a tax at the rate of 2% of the market value of the property.
Market value is defined as the amount the property would realize, if sold in the open market, without any encumbrances or restrictions. If the return is not filed, the owner is guilty of an offense, and upon conviction thereof, may be fined up to $3,000. Persons knowingly making false statements may be liable upon conviction to a fine of up to $3,000 or six months imprisonment, or both fine and imprisonment. If the tax is not paid on or before the last day the tax becomes due, a 10% surcharge is added. In the case of an extension of time, the Chief Valuation Officer may postpone the date on which the tax is payable in a particular case, by notice in writing.
Exemptions:
Property owned by Bahamians and situated in the Family Islands is exempt from property tax. Property approved as commercial farm land (by the Ministers of Agriculture, Trade and Industry and Finance) is eligible for property tax exemptions.
Also exempt from property tax are:
- Unimproved property owned by Bahamians, meaning property without physical additions or alterations, or any works benefiting the land which have not increased the market value thereof by $5,000 or more;
- Places of religious worship; school buildings and their gardens and playing areas;
- Property owned by foreign governments;
- Property owned by foreign nations used for consular offices or residences of consular officials and employees;
- Property used exclusively for charitable or public service from which no profit is derived.
For more information regarding the primary concerns prospective buyers have when looking to invest in property in The Bahamas please consult the Bahamas Realty Investment Guide at http://www.bahamasrealty.bs/pdf/bahamas_realty_investment_guide.pdf or consult Bahamas Realty directly at 1(242)-393-8618.