Buying Real Estate in The Bahamas
Just 50 miles off the coast of Florida, The Bahamas is a string of islands, 700 in total. Of the 700 islands, only 29 are inhabited, with a total population of over 300,000. Since it was located so close to Florida and its shipping channels, The Bahamas attracted explorers, settlers, invaders and traders. who all helped to shape The Bahamas today.
Christopher Columbus first made landfall in the New World on the island of San Salvador in 1492. Today The Bahamas is a rich tapestry of the descendants of freed slaves, the Loyalists and the Bermuda settlers. The capital of Nassau sits on the island of New Providence, the epicenter of business in The Bahamas today.
Why Buy Property in The Bahamas
A politically stable, English speaking country, with its close proximity to the US, makes The Bahamas an ideal location for offshore business. There are no income tax, inheritance, capital gains or corporate taxes in The Bahamas, and The Bahamian dollar is on par with the US dollar.
Although mostly known throughout the world for its natural beauty and Caribbean climate which attracts millions of tourists every year, The Bahamas is becoming more popular for international real estate investment. A friendly business environment coupled with all the perks The Bahamas has to offer make it an ideal location to purchase a second or vacation property. This is where you come when you need a mortgage in Bahamas.
Questions about Buying in The Bahamas
The Bahamas has a property for every budget; condos from $200,000 to $20M dollar estates. With a safe investment climate, close proximity to the US and no end of visitors to this world class vacation destination.
Whether you plan to buy a vacation property or you want to settle down and retire to The Bahamas, there will be a lot of questions about the process. This is a brief summary of the more common questions buyers have about purchasing property in The Bahamas.
Can non-Bahamians buy property in The Bahamas?
Yes, The International Persons Landholding Act, 1993, allows for the sale of property to non-Bahamians.
Do I need a Lawyer when purchasing property?
Technically no, but we highly recommend you do as they can give you an Opinion on the title (ie title insurance).
What are the costs involved in buying a property?
The buyer is responsible for 50% of the government stamp tax on the purchase and their legal fees.
How Much is the Stamp Duty?
Stamp Duty is calculated according to value; here are the breakdowns:
- Up to $100,000, the rate is 2.5%
- Over $100,000, the rate is 10%
As mentioned above, the stamp duty is generally split between the buyer and seller.
What are the Licensing Issues if I want to Build a Home?
You will need a building permit and approval from the Town Planning Board. Your builder or architect can assist you in this process.
How Much are Property Taxes in the Bahamas?
Property taxes are based on the most recent selling price of the property. Here is the breakdown of amounts owed:
Owner occupied properties:
- First $250,000 – Exempt
- $250,000 to $500,000 – 0.75%
- Over $500,000 – 1%
- Over $5,000,000 – .25%
On vacant land (non-Bahamians):
- First $7,000 -$100
- Over $7,000 – 1.5%
*Any improvements to the property should be reported for the purposes of re-evaluating your property value.
All other property types the tax breakdown is as follows:
- First $500,000 – 1%
- Over $500,000 – 2%
What are the Requirements to Live/Work in The Bahamas?
Like most Caribbean islands, in order to qualify for a work permit, the employer must demonstrate that there is not a Bahamian qualified and able to take that position.
Buying property in The Bahamas is not as difficult as it may seem. Talk to us today about financing your piece of paradise in The Bahamas!
If you are looking for financing options in The Bahamas, we can help!