Buyer's Guide:
Real Estate Costs in
The Bahamas.

GOVERNMENT TAXES ON PROPERTY CONVEYANCES

10% Government Stamp Duty on all property transactions valued at $100,000 or more.
2.5% Government Stamp Duty applicable on all property transactions valued at $100,000 or less.

The usual practice in the Bahamas is for the tax to be shared equally between buyer and seller unless otherwise agreed upon.

A 12% Value Added Tax (VAT ) is charged on real estate services, including appraisals, legal work, commissions and insurance.

Laws and policies are subject to change.

LEGAL FEES

Both buyer and seller need legal representation by Bahamian attorney.

BAHAMAS REAL ESTATE COMMISSIONS

Developed property: 6%
Undeveloped property (vacant land): 10%

ANNUAL REAL PROPERTY TAX RATES

The rates of tax on real property are as follows:

In respect of owner-occupied property:

The first $250,000 of market value is tax exempt
More than $250,000 and not exceeding $500,000 of market value is 0.625%
More than $500,000 and not exceeding $5,000,000 of market value is 1%
More than $5,000,000 of market value is ½% (capped at $50,000 annually)

In respect of unimproved property: (other than unimproved property exempt by virtue of Section 39 of the Real Property Tax Act)

First $7,000 of market value is $100
More than $7,000 of market value 2%

In respect of any other property:

First $500,000 of market value is 1%
More than $500,000 of market value is 2%

EXEMPTIONS

Property owned by Bahamians and situated in the Family Islands is exempt from property tax. Property approved as commercial farm land (by the Minister of Agriculture and Marine Resources, and the Minister Finance) may be eligible for property tax exemptions.

Unimproved property owned by Bahamians, meaning property without physical additions or alterations, or any works benefitting 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.

ANNUAL HOMEOWNERS RESIDENCE CARD

Available to any homeowner in The Bahamas. Obtained from the Director of Immigration, it allows the permit holder, and family, to enter and remain in The Bahamas for the period of the permit.

SHIPPING FURNITURE AND HOUSEHOLD ITEMS

Easily handled by a shipping or airfreight company which makes moving and decoration quite easy. A detailed inventory of items with approximate value is need and we suggest using local customs prior to clearing your items.

FINANCING

Local banks offer BSD$ and US$ mortgages to finance the purchase of a home or property in The Bahamas.

BAHAMAS GOVERNMENT VALUE ADDED TAX (VAT)

As of July 1, 2018 the Bahamas Government has imposed a 12% Value Added Tax (VAT) on all products and services in The Bahamas.

Buyer's Guide: Real Estate Costs in The Bahamas.

Buyer's Guide:
Real Estate Costs in
The Bahamas.