Buying & Selling Property in the Bahamas

The information shown below is a guide only and while we have endeavoured to show accurate information we do not guarantee its accuracy, and accordingly no warranties are given.

Property Purchase

Purchasing a property in the Bahamas is very similar to buying a house in the United States with closing costs and lawyer's expenses and title search fees and permits and inspections.

The largest extra cost is for conveyance. This is a graduated tax on the conveyance of real property that is sometimes split between the vendor and the purchaser. Currently, Government Stamp Duty is calculated as follows:

• Under $20,000 @ 2%
• $20,000 $50,000 @ 4%
• $50,000 $100,000 @ 6%
• $100,000 $250,000 @ 8%
• Over $250,000 @ 10%

Property tax.

Properties are assessed on value.
For owner-occupied properties, the tax is as follows:-

• Nil on the first $100,000
• 1% on the next $400,000
• 1½ % on the excess over $500,000

On other properties, the tax is as follows:-

• 1% on the first $100,000
• 1½ % on the next $400,000
• 2% on the excess over $500,000.

Re - Sales

Non-Bahamians should also register their investment with the Exchange Control at the Central Bank of The Bahamas to ensure that on resale they will be able to remit the net proceeds of sale outside the Bahamas in the currency of the original investment.

Purchase Costs

A typical sale, called a Gross Sale, assumes the following:

The Vendor (seller) pays :-

• A portion of the Government Stamp Tax
• The real estate agents commission. The commission on the sale of residential developed property is 8% of the gross sales price; on the sale of undeveloped property, it's 10%.
• The vendor's legal fees. The legal fees on a sale or purchase are usually one-half of 2½ % of the first $500,000, 2% of the next $500,000, 1% of the next $4,000,000 and ½% thereafter.

The Purchaser pays :-

• A portion of the Government Stamp Tax
• One-half of the purchaser's legal fees as detailed, to include the lawyers Opinion on the title to the property.
• Recording fees ($3.50 per page) on the conveyance and other closing documents which need to be recorded.
• Permit fees under the International Persons Landholding Act if applicable.

Taxes

The Bahamas has no income tax, capital gains taxes, or inheritance taxes. Also, there is no sales tax with the exception of the Stamp Duty paid on the conveyance of real property.
Consideration may be given to applying for Permanent Residency, which is available to those who invest a minimum of $500,000 in the Bahamas. This investment may take the form of the purchase of real property with a minimum value of $500,000.

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